The Revenue are constantly targeting different types of businesses and offering them amnesties for voluntary disclosure of underpaid tax. Previously, it was plumbers, who had until 31 May 2011 to declare any previously undeclared income, on which they had not yet paid any tax. Anyone found by the Revenue to have not declared all their income after this date would be subject to higher penalty rates, and could, in extreme cases, be subject to prosecution. If you believe this is applicable to you, please contact me immediately.
The Revenue has been talking about “simplifying” the tax and National Insurance systems. This is a major task as the UK has one of the most complex tax systems in the world. Currently, they have said that they are not going to try to make some forms of dividend payment subject to National Insurance, though they have not ruled this out for the future. If this does happen, and you are running an owner managed limited company, it may be necessary to look at your company structure.
If you are struggling to pay your taxes, the Revenue will be willing to discuss this with you and, if they agree to a plan, will come to a payment plan arrangement with you. However, these payment plans are subject to conditions and the Revenue can get very antsy when the plans are not kept to. They are only willing to allow these plans on a short term basis, rather than every year, so you need to make sure that you use the breathing space to catch up with not only the old tax payments but to make sure you can also pay your current and future tax liabilities. You should also be prepared for them not to agree to a plan and therefore make sure you can pay at least a large part of the tax due.
Paying your tax
Unfortunately, for several types of tax, the Revenue no longer accepts cheques sent through the post for paying your tax. There are many ways to pay your tax including:
- www.billpayment.co.uk/hmrc and settle your bill via debit or credit card (the Revenue make a 1.25% charge on credit cards)
- use internet/telephone banking (or visit your bank), and make a bank transfer to HMRC.
For other methods of payment, please visit the HM Revenue website at http://www.hmrc.gov.uk/payinghmrc/selfassessment.htm.