Anna’s Accountancy Alerts – Week 13 (26th June – 2nd July 2023)

Anna’s Accountancy Alerts - Week 13 (26th June - 2nd July 2023)

https://www.ispeech.org

HMRC plans points-based penalties for self assesment

The current standard £100 fine for late filing of self assessment tax returns is due to be changed to a points-based system from 2026.

The planned penalty reforms for paying tax late will be based on the length of time the tax is outstanding but will only affect the 5% of non-compliant taxpayers.

The earlier an overdue tax payment is made, the lower the penalty charge will be.

The planned penalty reforms for sending in a tax return late will be based on points. Taxpayers who miss a filing deadline will initially be given a point, with a financial penalty being charged only once a set number of points is reached.

Changes to VAT penalties for late filing or payments

These changes apply to VAT periods starting on or after 1 January 2023 and apply to everyone who submits VAT Returns, including customers who submit nil or repayment returns.

HMRC have also made changes to VAT interest charges, with the introduction of interest on late VAT payments and changes to the way they calculate repayments of VAT that they owe businesses.

To avoid being subject to penalties, businesses must submit and pay their VAT liabilities on time. If you are a quarterly filer, you may be subject to the new penalties from May 2023.

More information is available about changes to late VAT penalties and interest charges

Businesses misusing their till systems should come forward

HMRC is writing to businesses suspected of evading tax by misusing their tills.

Users of electronic sales suppression systems should come forward and disclose what they should have paid while misusing their tills.

Electronic sales suppression users will either have access to specialist software or will configure their electronic point of sale device in a specific way, that allows them to consciously hide true sales and the resulting tax that is due.

For those businesses who fail to reply, HMRC can open an enquiry or, make an assessment of what it believes the business owes. This will include interest and penalties, in the most serious cases or where businesses give false information, HMRC may open a criminal investigation.

Businesses can make a disclosure about misusing their till system.

Keep up to date with all things Accounting and Finance with my bi-weekly Accountancy Alerts. 

Stay Up-To-Date With Coronavirus & Brexit News

Coronavirus has affected us all. Whether you’re a sole trader, employer or employee. Stay up to date with the latest news – including government support, tax implications, and more.

Sign up to my Ask Anna Sessions!

Sign up for my Ask Anna sessions below.
A few days before the event you will receive the Zoom link via email.