Have HMRC really waived £100 fine for late self-assessment filing?

If you keep up to date with accountancy news, you may be aware of the rumours that HMRC have been waiving the £100 late self-assessment fine that is usually imposed by HM Revenue & Customs, if the filer has a “reasonable excuse”.

HMRC staff were asked to waive the £100 fine if people with mitigating circumstances appealed after paying up – this was all reported in an internal memo allegedly leaked to the Daily Telegraph.

It is estimated that up to 890,000 people could have potentially benefitted from the amnesty for missing the 31 January deadline as HMRC deals with a backlog of nearly a million letters from British taxpayers.

HMRC said it was trying to focus its resources on tackling major tax avoidance instead of "penalising people for trying to do the right thing".

However, previously, people who appealed the fine faced a two- or maybe even three-week investigation of their tax affairs before a decision was reached.

Leaked HMRC memo

The HMRC memo questioned the "lengthy" process, especially given that the "overwhelming majority of appeals" were actually accepted.

The alleged leaked document stated;

"Our penalty regime is intended to influence customer behaviour, but also be clear and cost effective, fair and proportionate.

"The current way of managing penalties does not meet these objectives, and so we have decided to take a more proportionate approach where a customer has filed their return late, and then appealed against their penalty.

"This means that in the vast majority of cases we will be accepting the customer's grounds for appeal, and we can cancel the penalty."

So, have HMRC really waived the £100 fine for late self-assessment filing?

It may be a hunch, but perhaps the recent act of goodwill could be something to do with a backlog of paperwork and the need for a less complicated appeals system?

In any event, don’t risk filing your self-assessment late - a spokesman for HMRC did add that despite the policy, nobody will be getting off the hook unless they've now sent in their return and "have a good reason for sending it in late".

Don’t take a chance – particularly when affordable help is at hand from Omni Chartered Accountants. Click here to contact us now, request a free of charge call-back from our website http://www.taxandaccountancysolutions.co.uk  or take our Accountancy Savings Challenge today!

3 common misconceptions SMEs have about accounting and tax

Anyone who is thinking of, or has already set up, their own business may admit to having preconceived ideas about how tax and accounting works.

For some, these misconceptions could have put them off even starting up their own business so instead, they have stuck with the security of working for an established employer.

Don’t let this stop you from fulfilling your dream of running your own company.

Below are some of the most common misunderstandings.

1. My business is too small to need an accountant

Regardless of how big or small your business is, you can always benefit from the help of an accountant.

If cash flow is limited then admittedly a full time employee may not be the most practical step. However, many small companies enlist the help of an accountancy practice that can keep track of figures, submit tax returns on time, carry out payroll services and best of all, advise you on the best ways to save your company money.

Even if you’re happy to take on the extra workload yourself, hiring an accountant purely for the money saving advice can be well worth your time. You stay in control of what you want when, but you benefit from the professional knowledge, experience and advice.

2. I can do my accounts myself

This is of course true – you can do your accounts yourself. However, as mentioned above, even though it may not seem like it at the time, an accountant can save you a lot of money in the long run.

Furthermore, very few successful entrepreneurs got to the top because they spent their days bookkeeping.

You are of much better value to your business when you spend time working on new business development and growing the company rather than doing things that you can hire others to do.

3. HMRC is always right

Just like any business, HMRC isn’t immune to making mistakes. Although they endeavour to achieve incredibly high levels of accuracy, human error is part of life.

If you are uncertain about a tax bill, the complexities of filing online, your tax code or anything else to do with your accounts, check out the FAQ’s and help available on the HMRC website.

Alternatively, if you have been left incredibly confused by tax codes and balance sheets, or just want help or advice, contact Omni Chartered Accountants who will be able to advise you accordingly.

HMRC eases stance on late PAYE filings

UK businesses with less than 50 employees will now be allowed three days’ leeway by HMRC before being penalised for late filing of PAYE submissions.

HM Revenue & Customs has confirmed that late payment penalties will carry on being reviewed on a “risk-assessed” basis as opposed to being issued automatically.

No change to PAYE filing deadlines

HMRC have confirmed that there will be no change to the actual filing deadlines, which usually means that businesses need to file them actually on or before each payment due date.

HMRC will be closing close to 15,000 PAYE schemes in March 2015 in a bid to prevent unnecessary penalties being issued, for companies that have not filed a PAYE report since April 2013, and as a result, look to appear to have ceased trading.

These company schemes will be written to, advising them about the planned closure and what they should do if they are - or should be - operating PAYE.

Employers with less than 50 employees are also reminded that late filing PAYE penalties will apply from 6 March.

A discussion document has been published by HMRC in order to gauge views by the deadline of 11th May 2015. Suggestions concerning potential improvements to the way in which penalties apply for PAYE payment failure or to meet deadlines for registration or returns will be considered.

How to run your PAYE smoothly and avoid penalties

Of course, it is not always easy running a business and PAYE is something that a good accountant like Omni Chartered Accountants can help you with.

Seeking help with your PAYE affairs may work out more cost-effectively than you may think, especially when you consider the time saving and potential problems that your company could face if deadlines and payments are not made by the dates as set out by HMRC.

For more information, contact us now by clicking here or request a free of charge call back from our website by clicking on the link at the top of this page.