On 17 December 2010 HMRC announced their intention to roll out a programme of Business Record Checks in the second half of 2011. At present they are consulting with professional organisations regarding the scope of their enquiries. This consultation will be completed and the results published by 31 March 2011.
If your business is selected, HMRC staff will visit your premises and ask for access to all your business records. If they feel that there is a significant failure to keep proper records, penalties may be charged and additional tax assessments raised.
Here’s what we know so far:
- Use existing powers to check business records in up to 50,000 cases annually.
- Businesses targeted will have 250 employees or less and turnover below 50m Euros. (At present exchange rates just over £40m)
- Checks to begin in the second half of 2011.
- Impose penalties for significant record keeping failures.
Issues to be resolved by present consultation process:
- Arrive at a clear understanding of record keeping obligations; primarily what records do you need to keep.
- What level of penalty should be levied to bring about the required changes in defective record keeping, and
- Should HMRC allow a “cooling off period”, before penalties are charged, to give businesses time to remedy substandard record keeping.
The consultation is not concerned with whether HMRC should have powers to check business records, these already exist!
If HMRC are aware that your record keeping is defective this will no doubt trigger visits from a number of their departments. You may get additional PAYE/NIC or VAT audit checks for instance.
There are existing guidelines from HMRC on what constitutes satisfactory record keeping that will likely form the basis of their new Record Check processes. As the results of the present consultation become available we will include further information in this newsletter.
At present owners of qualifying Holiday Let property can set off losses from the letting activity against their other earnings. From 6 April 2011 you will no longer be able to do this. From 6 April 2011 you will only be able to carry losses forwards to set off against future holiday let profits.
From a tax planning point of view this offers a short window of opportunity. Any Furnished Holiday Let losses that you make up to 5 April 2011 can be set off against other earnings for 2010-11. This could be an opportunity not to miss as higher rate and additional tax rate payers may receive 40% or 50% of the losses from HMRC as tax refunds.
If you are planning extensive, qualifying repairs to your FHL property(ies) now may be a good time to implement and complete before 5 April 2011.
|The new regional National Insurance Contributions holiday came into effect on 6 September 2010.New businesses set up outside London, the South East and East of England are now eligible for a NIC holiday of up to £5,000 for each new employee they take on in the first year of their business. The scheme will last from 22 June 2010 to 5 September 2013You can claim if your new business started after the last Budget date, 22 June 2010.The following conditions apply:
If you think you may be eligible for this new relief and would like our help applying to HMRC please call.
Proving their marketing strapline of ‘not all accountants are grey’, Morris Cook Chartered Accountants have launched their new website at www.morriscook.co.uk.
As an established firm of Chartered Accountants with over half a century’s experience, Morris Cook, who have offices in Oswestry, Ellesmere, Llangollen and Telford, have a long and successful track record in working with a wide range of growing, diversifying and new start-up businesses.They have always looked to the future and encourage their clients to do the same.
Alongside information on the firm, the new website, which was designed and built by Hunter Bevan Ltd, a graphic design and web development company based near Knockin, allows clients to sign up for Morris Cook’s topical newsletter, keeping clients up to date with legislation and deadlines for filing accounts etc. Visitors can also download a brochure about the range of services offered by the firm.
Senior Partner Andrew Clarke says, “We wanted to work with a local company to develop our website and were pleased to find Hunter Bevan, a fellow member of the Shropshire Chamber breakfast networking club and 4Networking. The new site reflects our fresh approach to accountancy – not just in the compliance work such as completing year end accounts, but in working with our clients to help them to grow and flourish, even when times are tough.”
Hunter Bevan Director, Neil Bevan, says, “Working with Morris Cook proves the power of local networking clubs. If it wasn’t for the Chamber and 4Networking we might never have gained the opportunity to pitch for the business. Over 21% of our business is gained through formal networking and if business owners haven’t tried it, I’d encourage them to give it a go.”
The Shropshire Chamber meets at Oswestry Cricket Club on alternate Thursdays, and 4Networking at The Lord Moreton, Gledrid, on alternate Tuesdays. Either Neil or Andrew would be pleased to tell local business owners more about the opportunities networking can bring to your business.
Pictured: Andrew Clarke and Megan Jones of Morris Cook, launch the new website with Neil Bevan, Hunter Bevan Ltd.