The Chancellor George Osborne has made it clear – if people hide money offshore “then we are coming after them”.
Worried you are on the radar?
Suddenly the advice that you may have received on the golf course could cost you. Classed as a “tax evader” you could face fines of 200% and with the tough economic backdrop – you wouldn’t be receiving much sympathy from the British public.
The good news is that you can take action, and your tax advice does not need to cost the earth – why not get in touch with our experts today?
You may have seen in the news that a well known saviour of radio has been “naïve”. That got me thinking – what does naïve mean?
Naïve – lack of experience, wisdom or judgement.
I am not going to comment on the case or consider the separate debate on “naïve -v- greed” that I have seen. I am going to focus on what naïve means in connection to your tax – is this a ticking time bomb for you?
Google is now central to everyday life – don’t know the answer? Google it. This morning I searched “contractor tax uk” – the results, although disappointing, came as no surprise to me:
- 100% compliant
- Take home 90% of your pay with us
These are attention grabbing headlines, but ask yourself what does 100% compliant mean?
Do you really think that HM Revenue & Customs have approved the scheme – or is it based on the grey areas of tax law that could be open to challenge.
Imagine 3 or 4 years down the line HMRC challenge the arrangement and you are asked for the remaining 30/40% tax saved for each year – could you afford that? The cost, plus interest and penalties could run to thousands of pounds - will the people who told you that it was 100% compliant pick up your tax bill?
Will they have the sleepless nights and stress?
Take a minute
Do you fully understand the risks of your tax arrangements? Look at the bigger picture and ask the questions, what is the price you would pay to sleep easy, and then question whether the risk is worth the reward.
I would recommend that contractors looking for clear tax planning advice read passed the headlines – some people can afford to be naïve – for others it could be the biggest mistake you make.
Like fish and chips or even Ant and Dec, DIY and the Great British public just seem to go together.
Isn’t there a certain satisfaction in building something for yourself? There can be a great sense of achievement and, unless you are very unlucky, what does it matter if it goes wrong?
For me though, the great thing about DIY is that people usually know their limits. Yes, you can paint a room or put together a piece of flat pack furniture, but if you want an extension or a new kitchen you know to call in the experts.
Sadly, many people do not follow this logic with their financial affairs. Tax is not straightforward and a mistake can leave you with a large bill with interest and penalties.
A badly prepared DIY tax return can be far more stressful and financially damaging than building any piece of furniture.
Take a minute to think about your last tax return. Did you claim all the expenses to which you were entitled? Did you separate expenditure into capital and revenue? If you own a rental property jointly, are you sure that you returned the correct amount of income on each tax return? Although the software may make it seem fairly straightforward, the detailed guides and notes behind the scenes run to hundreds of pages. Did you look at any of these – or like the instructions that came with the furniture, did you have a quick glance and carry on regardless?
Unlike hiring a professional for your DIY, with tax advice you may even receive tax relief on our advice making the cost even lower. Did you know that we provide peace of mind for a net cost from as little as £12 per month? What is more, we provide free initial consultations – there really is no excuse for you to risk your tax affairs falling apart!
We are helping landlords make voluntary disclosure on undeclared letting income. If you have undeclared income it is important that you speak with a tax expert as soon as possible to minimise your potential interest and penalty charge.
Don’t put off any longer, our helpful team can guide you today.
31 January has been and gone – let us know if you had any problems?
HM Revenue & Customs have announced changes to reports you send from April 2014 on PAYE real time submissions.
The update covers late reporting reasons to online appeal facilities being introduced. More details can be found here:
Alternatively, why not relax and let the cleartaxation team manage your payroll today. We are tax experts and will be happy to take this stress off your hands to enable you to focus on what you know best – your business.
We are tax experts, but in our news section we are not looking to baffle you – we hope that you find this an interesting resource that helps to clarify tax changes. We will have guest bloggers and will be happy to answer any tax questions that have been troubling you – get in touch.
Journalists enquiries - we are happy to discuss any tax matters with you and help you understand the story – give us a buzz!