Insights

Two important news updates from HMRC:

Sectors to be benchmarked to set ‘expected’ trading levels

HMRC has just released news of plans to benchmark certain business sectors in order to support their own taskforces. The aim is to benchmark specific trade sectors so that HMRC can develop intelligence to enable them to take a view as to whether the results certain businesses are achieving are comparable to their competitors and fall within the ‘parameters’ expected by HMRC. There could be many reasons why a business might file a tax return which is outside the normal range; the benchmarks do not take this into account, therefore in such cases a comparison will lead to an HMRC enquiry, during the course of which the business owners will have an opportunity to explain why their business results differ from ‘expected’ figures.  They will also however, need to provide the additional information which HMRC requests during the course of the enquiry.

New Disclosure facility launched for taxpayers with a second income 

The Second Incomes Campaign is targeting taxpayers who have regular employment which is taxed through PAYE and also have an additional income, which they may not be declaring. For example, anyone who is involved in the following activities should consider making a voluntary disclosure:

·         adhoc consultancy, public speaking or providing training services;

·         catering, organising parties and events or providing entertainment;

·         taxi driving, hairdressing, fitness training or landscape gardening;

·         making and selling craft items;

·         buying and selling goods using market stalls, boot sales, eBay.

If you think you might be affected by these new developments, please contact us to discuss your individual circumstances before approaching HMRC. For further information, contact Anne Eager by emailing ae@rjp.co.uk.