VAT – Are You Registered?

People who attempt to avoid VAT rules have until 30 September to register to pay what they owe under a new HMRC campaign. This focuses on individuals and businesses trading above the VAT registration threshold – a turnover of £73,000 – but who have not yet registered. Specific sectors to be targeted by the taxman include construction, business services, hair and beauty, hotels and catering, retail distribution, recreational services, motor vehicle distribution and repair, sanitary and domestic services, agriculture and horticulture, property and road haulage.

Under the terms of the VAT Initiative, those who have not registered to pay VAT can come forward at any point up until 30th September to tell HMRC that they want to take part. If they make a full disclosure, most will face a low penalty rate of 10% on VAT that has been paid late. After this date, however, HMRC will begin investigating those who have failed to come forward, and substantial penalties and even criminal prosecution could follow.

Sasha Wickham, Tax Manager at Stewart Fletcher & Barrett, advises: “While most people do register for, and pay, the correct amount of VAT, there are still a large number of individuals and businesses who have not yet addressed this issue – and they could soon find themselves falling foul of the law. Those coming forward are invited to also disclose any other tax arrears. Where they have to pay a penalty on undeclared tax other than VAT, this will be lower than the customary penalty of up to 100 per cent charged to those who fall outside the opportunity. However, the Revenue appear to be using scare tactics – forcing people to rush into making decisions. We urge anyone who thinks this may be relevant to them to pick up the phone and give us a call before they act.”

Providing Exceptional Solutions

Stewart Fletcher & Barrett is proud to announce that it has adopted a new strapline to take the firm forward with renewed purpose and vision. After a period of deliberation and consultation, staff have chosen to sum up the company ethos with the slogan ‘Providing exceptional solutions.’

Senior partner Paul Carvell explains: “We felt that we had evolved beyond our old strapline, and wanted to encapsulate the spirit of the Stewart Fletcher & Barrett Group in the 21st Century. So I asked the whole team to think about what it is that we do that makes us special, that sets us apart – and, after all the votes were counted, we found a clear winner.

“Providing exceptional solutions is exactly what we strive to do for every single one of our clients – we pride ourselves on going the extra mile in order to achieve outstanding results. We aim to exceed expectations by delivering personally tailored, proactive solutions, and by selecting this new strapline we hope to make this ethos clear to everybody who engages with the SF&B brand. It was decided by all of our employees, so we know that they will live and breathe it – it will show that we do what it says on the tin!”

REPORT FINDS ‘CONSIDERABLE DISSATISFACTION’ WITH HMRC

A recent report by the Treasury Committee into the administration and effectiveness of Her Majesty’s Revenue & Customs has found that there is ‘considerable dissatisfaction’ among the public and tax professionals alike with the service provided by the Department – to the extent that concerns have been raised that, if the situation continues, it will severely undermine respect for the whole tax system.

The report identified three particular areas of dissatisfaction: access to advice over the telephone; responses to post; and offline alternatives to internet-based filing and guidance. It concluded that ‘there is a serious risk that if communicating with HMRC becomes too time-consuming, difficult and expensive, respect for the tax system, and with it voluntary compliance, may be undermined.’ The report also dismissed claims by the Department that these problems are primarily the result of reconciling of multiple PAYE tax years at once, as the current state of affairs has ‘been building for some years now.’

Stewart Fletcher & Barrett’s senior partner Paul Carvell commented: “While it is clear that HMRC is operating under significant pressures due to government cuts and the implementation of new legislation, at the same time businesses all over the land are struggling to deal with these issues too. There are certain levels of accuracy, efficiency and professionalism that one expects from an official government body, and unfortunately it is apparent that HMRC is letting these standards slip more frequently than in the past – as has been illustrated by the growing number of embarrassing incidents appearing in the press recently.

“As communication problems have emerged as the key factor in this report, now more than ever, anyone who has dealings with HMRC could benefit greatly from using a qualified tax agent who has the breadth of knowledge and experience required to achieve the best results when it comes to communicating with the taxman.”

To speak to a tax professional about how Stewart Fletcher & Barrett could help you in your dealings with HMRC, call us now on 02476 384171.