What to do if you have had a letter from HMRC

Have you had a letter from HMRC?

If you have, don’t bury your head in the sand!

HMRC letters – whether they are expected or unexpected – can be stressful for the recipient.

The first thing to do is read it thoroughly, digest its contents and consider what it is about.

Is it asking you questions or is it stating facts? In any event, it will certainly include advice on any action that may be needed.

Whatever you do, DO NOT IGNORE IT.

Seeking advice about an HMRC letter

Whether you are an individual, a sole trader or a limited company, the letter will have been sent for a reason and it will require action to clarify, resolve or just provide required information the HMRC.

It needn’t be stressful and you are not alone, so take simple steps to understand and talk to the experts.

The HMRC website contains many useful links and FAQ’s - is a great source for getting a greater understanding and knowing what to do and when to do it.

Just don’t ignore or put off dealing with it.

If you are still unsure then give Omni Chartered Accountants a call on 01902 837 408 or click here to contact us - we are always happy to assist.

Tax changes for April 2015 report in brief

At Omni Chartered Accountants, we believe in keeping things simple. 

So, with this in mind, here is our guide to the recent tax changes that came into effect on Wednesday 1 April 2015.

• The Corporation Tax rate was reduced to 20%
• The new Diverted Profits Tax was introduced
• The bank levy was increased from 0.156% to 0.21%
• Air Passenger Duty was restructured - abolishing bands C and D
• Hospice charities, blood bikes, search and rescue, and air ambulance charities are now eligible for VAT refunds
• Business rates changes (England only):
• The business rates multiplier has increased from 48.2p to 49.3p (47.1p to 48.0p for small business multiplier). This includes the 2% inflation cap
• The Small Business Rate Relief scheme has doubled for a further year - providing 100% relief for businesses with a single property with a rateable value of less than £6,000, and tapered relief with a rateable value of £6,000 - £12,000
• The business rates discount for shops, pubs, cafes and restaurants with a rateable value of £50k or below has increased from £1,000 to £1,500
• The cultural test for high-end TV tax relief has been modernised and the minimum UK expenditure requirement for all TV tax reliefs has reduced from 25% to 10%
• A new tax relief on the production of children’s television has been introduced
• The amount of banks’ annual profit that can be offset by carried forward losses has been restricted to 50%
• Two new bands for the Annual Tax on Enveloped Dwellings (ATED) have been introduced
• Capital Gains Tax exemption for wasting assets will only apply if the corporate selling the asset has used it in their own business
• An investment allowance for North Sea oil and gas, replacing the existing offshore field allowances and simplifying the existing regime, has been introduced
• A reduced rate of fuel duty to methanol will apply - the rate is 9.32 pence per litre
• Fuels used to generate good quality electricity by CHP (combined heat and power) plants for onsite purposes are exempt from the Carbon Price Floor
• Climate Change Levy main rates have increased in line with RPI
• The VAT registration threshold has increased from £81,000 to £82,000 and the deregistration threshold from £79,000 to £80,000
• Scottish government’s Land and Buildings Transactions Tax (LBTT) will replace Stamp Duty Land Tax in Scotland
• The associated companies rules have been replaced with simpler rules based on 51% group membership
• The standard and lower rates of landfill tax have been increased in line with RPI

We would love to hear from you if your business has been affected by any of the changes – in either a positive or negative way. Please join in the conversation on our Facebook page, or Tweet us @OmnitasTax!

If you would like no-nonsense, general tax advice then we are also here to help; you can request a free of charge call back from our website or click here to contact us via our website contact form and we will get back to you promptly for an initial chat.

What to do if you have had a letter from HMRC

What to do if you have had a letter from HMRC

Had a letter from HMRC?

If you have received a letter from HMRC and are stressed out by it, what should you do?

What to do if you have had a letter from HMRC

1. Read it thoroughly

2. Digest and consider what is about

3. Is it asking you questions or is it stating facts?

Whatever the contents of the letter, it will certainly include advice and action needed.

DO NOT IGNORE HMRC CORRESPONDENCE

The best thing to do is to seek advice; many accountants will give you some free advice and some direction.

Regardless of whether you are an individual, a sole trader or a limited company, the letter will have been sent for a reason and it will require action to clarify, resolve or just inform.

It needn’t be stressful and you are not alone, take simple steps to understand and talk to the experts. The HMRC website contains many useful links and FAQ’s - it is a great source for getting a greater understanding and knowing what to do and when to do it.

Just don’t ignore or put off dealing with it.

Omni Chartered Accountants are here to help if you are seeking advice - request a free of charge call back from our website, call 01902 837 408 or click here and we will contact you for a free of charge informal chat.