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Key Dates
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14 October 2011 - Deadline for submission of forms CT61 and payment of any associated income tax for the quarter ended 30th September 2011.
* 19 October 2011 - PAYE and NIC due for the month ended 5th October 2011. Quarterly PAYE and NIC due for the quarter ended 5th October 2011 for qualifying small employers. Due date for payment of tax and class 1B NIC arising under a PAYE Settlement Agreement for the year ended 5th April 2011. Submit Construction Industry Scheme return for the month ended 5th October 2011.
31 October 2011 - Submission date for 2011 self-assessment tax returns not submitted electronically (where these were issued by 31st July 2011).
* If you pay online, the deadline is extended to 22nd of that month. Both dates refer to when the money should arrive in HMRC's account.
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HMRC criticised over tax amnesties
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HMRC has hit back at suggestions that tax amnesties, such as the deals reached recently with Switzerland and Luxembourg, could help criminals gain respectability.
Jonathan Fisher QC claimed last month in a speech to the 29th International Symposium on Economic Crime at Jesus College, Cambridge, that the amnesties risk turning HMRC into "one of the largest money–laundering operations in history."
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Describing the Swiss agreement as a "grubby little deal", Mr Fisher urged Parliament to intervene to prevent misguided tax amnesties being misused by organised crime.
He said: "Organised criminals set up or take over legitimate companies and predict excessive corporation tax profits for the company year. The companies pay large sums in provisional tax based on predicted profits, with these monies having been derived from criminal activity. Later, the company's accountant approaches the tax authority to explain that profits had been far lower than anticipated and in this way obtain a tax rebate.
"The second way in which HMRC has found itself penetrated by criminals for money laundering purposes takes place with the active encouragement and support of the Government.
"Since 2007 HMRC has offered taxpayers a variety of different disclosure opportunities to encourage the voluntary disclosure of taxable income on hidden assets in return for beneficial tax treatment. The opportunity presented to money launderers to legitimatise the monies from their illegal activities and bring them into the financial system is colossal".
HMRC have dismissed the claims saying they have robust measures in place to prevent fraud against the tax system.
LINK – Tax amnesties turn HMRC into "biggest money–laundering operation in history"
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Calls made for simpler SME financial reporting
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The Financial Reporting Council and the Department for Business, Innovation and Skills (BIS) have published a joint missive calling for annual accounts for the smallest businesses to be simplified in order to cut red–tape for micro–entities.
The FRC say that the paper, timed to coincide with an Office of Tax Simplification (OTS) consultation on SMEs, is the first step to freeing them from the shackles of accounting toil.
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Objectors say that simpler reporting requirements could spook traders and creditors making them reluctant to engage, fearing SMEs will be unable to honour their debts.
Supporters say the new proposals will cut red tape, freeing businesses up to expand and develop — boosting the economy at the same time.
John Davies, ACCA head of technical, welcomed the principle, but feared the practice.
He said: "Preparing accounts is important from the perspective of financial discipline."
However he said the institute would be open to evidence of excessive reporting requirement that could be cut under new proposals.
ICM chief Philip King said the economy could actually suffer if reporting restrictions were relaxed.
"Without audited numbers that can be trusted, banks will not lend and suppliers will not extend credit to their customers," he said.
"Credit fuels business — access to credit comes from greater access to information, not less."
The BIS/FRC proposition calls for a simplified trading statement (rather than the current profit and loss account), a statement of position — including details of assets and liabilities — and a simplified annual return.
LINK – Simpler SME reporting ties users in knots
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Three–fold increase in tax scam emails
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HM Revenue and Customs say the number of scam "phishing" emails has increased by more than 300% over the past year.
The figure comes in the lights of HMRC's warning about the scam emails which aim to steal individuals' bank account details.
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The scam messages inform the recipient that they are due a tax rebate and provide a link to a replica of the HMRC website. Visitors are then asked to enter their credit card details which are used to attempt to take funds from their accounts.
According to HMRC, almost 24,000 "phishing" emails were sent in August this year, a three–fold increase from 2010.
The agency is currently shutting down 100 scam websites a month.
Joan Wood, Director of HMRC Online and Digital, said: "We only ever contact customers who are due a tax refund in writing by post. We currently don't use telephone calls, emails or external companies in these circumstances. If anyone receives an email claiming to be from HMRC, please send it to phishing@hmrc.gsi.gov.uk before deleting it permanently.
"The increase in reports is partly due to improved awareness of this scam. However, I have no doubt that more of these "phishing" emails are in general circulation than ever before.
"HMRC will do everything possible to ensure those receiving this email know what steps to take to protect their information, and we are working closely with other law enforcement agencies to target the criminals behind this serious crime and see them brought to justice."
LINK – Reports to HMRC of fraudulent emails soar
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New Agency Worker Regulation (AWR) comes into affect
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The Government has introduced new Agency Worker Regulation (AWR) changing the way businesses introduce new staff on a short term basis.
The Agency Workers Directive came into force across the UK on October 1 which will provide temporary workers equal rights to permanent workers following 12 weeks working on an assignment.
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Equal treatment applies to various terms and conditions including those related to pay, working hours, overtime, holidays, rest periods, access to vacancies and to other facilities such as car parking and canteens.
It does not include, however, pension provision and occupational sick pay, nor will the regulations change the employment status of temporary agency workers.
According to the regulations, a break of more than six weeks between assignments will reset the qualifying period
However breaks between assignments due to a number of specified reasons, such as illness, maternity or pre–determined closure periods (e.g. school closures during holidays) will not break the qualifying period.
LINK – New law to bring major changes for temporary workers
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Cable attacks banks over lending
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The Business Secretary Vince Cable has once again attacked banks over a lack of lending to SMEs.
Mr Cable made the attack during a speech on the economy at the Liberal Democrat's annual conference in Birmingham.
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He said: "Productive British business and banking are currently at odds.
"Banks operate like a man who either wears his trousers round his chest, stifling breathing, as now, or round his ankles, exposing his assets. That's if they have any."
Cable added that "we want their trousers tied round their middle: steady lending growth; particularly to productive British business, especially small–scale enterprise."
In July Mr Cable suggested dividends and bonuses could be a target for bank as part of a "carrot and stick" approach to boost lending.
He added that if the banks were left unchallenged, a lack of available finance for SMEs could halt any economic recovery.
LINK – Cable sees truce ahead with UK banks, halting year of conflict
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2,250 tax inspectors in super rich crackdown
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A crack team of more 2,000 tax inspectors is to be set up by HM Revenue and Customs to target tax avoidance and evasion.
The move was announced by Chief Secretary to the Treasury, Danny Alexander, during his speech to the Lib Dems' autumn conference.
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The team of 2,250, with more than 1,000 of these jobs being advertised this month, will target an estimated 350,000 UK residents whose personal wealth exceeds £2.5m.
During his speech Alexander also pushed the coalition Government to increase the income tax threshold to £12,500 from £10,000.
Refuting suggestions to cut taxes for the wealthiest, he told the conference: "If we are all in this together, those with the broadest shoulders must bear the greatest burden.
"Fair taxation of the wealthiest is key to our deficit reduction plan. Of course, if a better way can be found to raise money from this group, I will be willing to consider it.
"But right now we must focus relentlessly on those who are struggling, and we need to make sure that tax owed is tax paid."
Alexander also hinted at support for a "mansion tax" to capture revenue from owners of substantial property.
The latest proposals will see the creation of new council tax "superbands" in areas of high property values and additional taxation on house sales.
LINK – 2,250 tax inspectors lined up for avoidance focus
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Small businesses fail to check credit scores
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A survey of nearly 700 small businesses has found that more than 71 per cent did not check their customers' credit status.
Furthermore, the survey by credit agency Experian, found that 39 per cent of small businesses did not even know what a credit score was.
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The survey also revealed that 61 per cent had never checked their own score.
Businesses are being warned that if they do not check credit references they could potentially lose out on a contract with a potential new customer, be refused materials from a new supplier or turned down for finance.
Simon Streat, Managing Director of Experian's UK SME business, said: "Failure to address credit problems may put small and medium sized businesses at a big disadvantage, as many organisations will be put off engaging with a company that has a low score.
"It is important for businesses to monitor their credit score on a regular basis to ensure it reflects their situation accurately and to be able to take action to resolve any issues that are highlighted.
"Simply taking the steps to check the credit score of firms before doing business with them is straightforward and affordable and it could make all the difference."
LINK – SMEs unaware of credit status
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Banks to offer riot loans
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A major bank is set to offer interest and fee–free loans to businesses hit by the summer riots.
Natwest and RBS will provide small businesses directly impacted by the riots a loan of up to £25,000 for up to six months.
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This will create immediate funds for businesses waiting on compensation from the Government or insurance companies.
At the end of the six month period, businesses can either repay the loan from these funds or transfer any outstanding amounts on to one of the bank's range of flexible loan products.
Chris Sullivan, chief executive of RBS and NatWest corporate division, said: "We want to do everything we can for businesses affected by the riots.
"I hope that other banks will also be able to help small businesses recover; our high streets are vital for local communities and economic recovery.
LINK – Free loans offered to riot–hit businesses
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