Dealing with HMRC
When the Tax man comes knocking at your door or needs to check your books and records this can be a frightening experience for any business and can be extremely costly as well. We always advise not to deal with HMRC on your own. We can help and advice in a situation like this. The tax man if he finds a mistake in record keeping can find a business up to £3000 per mistake. It’s our job to make sure everything is correct and avoid putting money in HMRCs pocket. Our team have a wealth of experience when it comes to dealing with HMRC and negotiating reductions in, or removal of, penalties.
If you file a late VAT return or pay late, HMRC calls it a “default” and you may move into a “surcharge period”. If you default again during this time, your surcharge period will be extended and you’ll face extra charges on top of the VAT you already owe. These surcharges will be a percentage of the amount you owe, which HMRC will estimate if you haven’t sent them your records. They’ll base their assessment on your turnover and how serious your default is, from 2% to 15%. They can also charge you between 15% and 100% of the unpaid amount for submitting an inaccurate VAT return, so make sure you keep your books up-to-date! As well as helping you with any penalties you already have, VAT returns are something we can take care of for you on an on-going basis, offering VAT advice so you never have to face a penalty. We will ensure you are registered for the most appropriate VAT scheme for your business type and there is team at hand for advice.
This is an area that unfortunately trips businesses up through no real fault of their own. Whenever a change occurs that affects the amount or kinds of tax you”re liable for, you need to let HMRC know. Failing to notify HMRC when any of these types of changes happen will leave you open to unwelcome penalties. Small business owners who are extremely busy and have a lot on their minds can often make mistakes and then they are faced with penalties from HMRC. We are in constant contact with HMRC, and with constant oversight of your figures we can make sure that you never become a casualty of HMRC. If you’ve been issued with a penalty, or if you are worried that you may have made a mistake in your filing or missed any deadlines, talk to us and we can act on your behalf to get everything sorted out and back to normal.
Correspondence from HMRC notifying you or your company of an investigation into your tax affairs is never going to be an easy thing to receive. If you find yourself in the position of a tax investigation by HMRC you will need an experienced professional team by your side to hold your hand and help you through the process to achieve the best possible result and outcome. We have a wide range of experience in dealing with HMRC. We can help to resolve matters in tax investigation, surcharges, penalties, negotiating, fines and umbrella companies. With HMRC bringing PAYE Real Time into force many businesses are receiving fines we can also help and advice on Real Time matters. We also offer a tax investigation insurance for yet greater peace of mind.
When you’re setting up payroll, you need to account for every single person you employ, regardless of how much or how often you’re paying them. If they earn over a certain amount, you’ll need to operate a PAYE system, which means calculating and deducting their income tax and national insurance and reporting all that information and more to HMRC every time you pay them this is called RTI (Real Time).You also have to keep track of any other benefits your employees are getting – like company cars and private medical insurance, for instance. All this information has to be submitted electronically, if not you may incur a penalty from HMRC. Grow Your Business can set up and manage an entire payroll system for you that is what we are good at, there is always plenty advice on hand as well which will answer all of your questions.
With HMRC fines, surcharges and other penalties lurking behind every possible mistake when it comes to tax and financial regulations, you’ve got to get it right the first time, every time. Each tax or duty you’re liable for will have its own specific rules and penalties for late or incorrect payment and filing. Of course, the mistake might not actually be yours. You can even face a penalty if you don’t tell HMRC that their assessment of what you owe is too low. If you’ve had an unexpected or incorrect HMRC penalty, or if you simply don’t understand the demand for payment you’ve received, that’s where Grow Your Business can help as your agent for HMRC… If the fault is yours, we may still be able to get the penalty reduced or arrange a payment plan or in some cases written off.
The kind of HMRC Fines you can expect to get slapped with depends on the tax it relates to. Here’s a quick breakdown: – Self-Assessment- PAYE/National Insurance Late Payment Penalties- VAT and Excise Wrongdoing Penalties- Penalties for Errors on Returns, Payments and Paperwork- Failure to Notify Penalty If you’ve been issued with a fine, talk to us as soon as you can we are here to act on your behalf and get things sorted for you.
Using an Umbrella Company removes the stress of running your own limited company. At Grow Your Business we ensure you are 100% Compliant while also ensuring your net earnings are maximized by processing valid business expenses. We are happy to discuss all options with you.