HMRC continue to press estate agents to obtain records of property letting that has not yet been declared by taxpayers. As well as writing to landlords who are currently letting property, they are now obtaining records of people who have let a house or flat in the past and may even have sold their buy-to-let properties. They will be writing to taxpayers to get them to declare both the income from the letting and any potential capital gain from the sale of the property. If you have a property that you let but has not yet been declared to HMRC, we strongly encourage you to come clean about this as soon as possible. The penalties for a ‘discovery’ rather than a voluntary declaration are significantly higher and we can approach HMRC in the first instance in order to deal with the matter in the best light.

There has been a huge increase in the number of scam emails claiming to be from HMRC this month and promising a tax refund. The emails all ask you to click through to a website and enter bank and/or credit card details for the repayment to go to. Some request 3 digit security codes from credit cards, as well as your mother’s maiden name.

All this provides fraudsters access to your account and gives them information to sell on to others. Remember the golden rule, ‘If it seems to be too good to be true, it probably is’!

Those wishing to report a phishing email should contact phishing@hmrc.gsi.gov.uk, should delete the email and should not click through to the website as requested. There is more information on the HMRC press release.

Companies Act 2006 – Countdown to October 2009

The Companies Act 2006 is changing the law for companies. These changes affect every company operating in the United Kingdom. Passed in 2006, the Act reaches the final stage of implementation on 1st October 2009.

What are the key changes for October?

This is the main implementation of the Companies Act 2006, with a number of changes for companies. A list of all the changes can be viewed here. However, we have listed the main changes below with a small explanatory paragraph beneath each:

Directors’ addresses protected from disclosure
Alternative address for registers
Easier to set up a company
Notifying us of articles changes
UK wide company registry
Guidance
Forms
Fees
Dealing with us online
Protecting your company from hijack
Important tips for companies to make the transition to the new Act a smooth one

Companies House have strengthened their fines regime for limited companies filing their company accounts late. The fines are now as follows:

• £150 – Up to one month late
• £375 – One to three months late
• £750 – Three to six months late
• £1,500 – More than six months late

And these penalties can be doubled for the second year that the accounts are late, so beware sending your records in at the last minute. It could prove an expensive mistake.

The current world financial situation leaves us with plenty to worry about but it also provides lots of opportunities. The media ensure that we hear everything we need to worry about the situation. The question is how will we respond? How can business owners be realistic and responsible while at the same time plan to come through the recssion stronger? One of the HfM directors Stephen Russell Smith, who is a qualified and experienced business advisor, has written a short guide to Surviving and Thriving Through the Recession that you can download for FREE here.

Some people are good at keeping and filing everything they need for their tax return – statements of savings interest and dividend payments, accounting records, and so on. Others end up making estimates at the end of the year. But things are changing. HMRC now have new powers and a new penalty regime. So more care than ever is necessary in keeping records in order to avoid the new penalty regime.

Evreyone wants to pay less tax but keeping up to date with developments in tax is hard work even if you are a professional. That is why we have started this news page to keep you informed when changes occur so that you can be informed in time to act. In addition there is an RSS feed to subscribe to for free so you need never miss important news that might save you money, trouble or both.

Our aim is be simple and practical and wherever possible link into more detailed guidance that is available from HMRC or elsewhere. Bookmark us to make sure you stay up to date.