Bollands Accountants Stratford

Previously invisible tax evaders are to be traced online by HM Revenue and Customs, which has announced plans for the introduction of “cutting-edge” tools over the next year.

Outlining a number of new campaigns to target VAT defaulters, private tutors and e-marketplaces, HMRC said it intended to use “web root” software to search the internet and accurately pinpoint people who have failed to pay the right amount of tax.

Web root is to be used alongside the department’s Connect computer system, which finds tax evaders by matching third party data with the vast amounts held by HMRC.

HMRC said the web root tools would find targeted information about specific companies and individuals, adding that before it designed and launched its campaigns, input from interested parties would be sought.

Mike Wells, HMRC’s director of risk and intelligence, said: “We want to make sure HMRC listens to as many informed views as possible for our future campaigns. We want the views and experience of people and organisations outside the department to play a fuller part in the campaigns that we design for customers.

“By being open about our areas of interest for the coming year we hope to maximise that exchange of information and ensure we reduce the tax gap and help customers pay what they owe.

“We will use the information we gather to pursue people who choose not to use the opportunities we provide for them to put their affairs in order on the best possible terms. It will be more expensive if we come and find people, so I urge them to come forward and disclose voluntarily.”

HMRC also detailed plans to target people trading through e-marketplaces who failed to pay tax, but the department said this was unlikely to affect those only selling a few items.

Business management software specialist Sage raised the curtain on its Sage Peachtree 2012 line of small business accounting software today,
promising small businesses instant, customizable access to the critical information that drives them.

“Small businesses contend with a host of issues, from increased compliance requirements and rising costs to
staying competitive, in many cases with reduced staff,” said Connie Certusi, executive vice president and general manager, small business
accounting solutions, Sage North America.

“They need a business management  system that is easy to use but brings them the rich insight they need to manage
effectively,” she said. “Sage Peachtree 2012 easily delivers that insight they  need so they can focus on what they do best: running their businesses.”

Shari Willman, product marketing manager with Sage Peachtree, explained that the new additions to the small business accounting software are based on
the company’s intensive interaction with its customers.

“When we get ready to decide what the next features to build into Peachtree are, we talk to our customers,”
she said. “We have a very active usability lab. We go out to their places of business, because there’s nothing like watching how customers use the product in
their place of business.”

The pound rose against the dollar for the first day in six as a report showed inflation accelerated more than forecast in April and reached the fastest pace since 2008, prompting investors to bet on higher interest rates.

Gilts fell, while sterling appreciated against 15 of its 16 major peers, gaining most against Japan’s yen. U.K. consumer prices rose 4.5 percent last month from a year earlier, theOffice for National Statistics said today. The median forecast of 32 economists in a Bloomberg survey was 4.1 percent. The Bank of England left its key rate unchanged at 0.5 percent on May 5 as policy makers prioritized growth over taming inflation.

“The inflation rate was higher than expected, and therefore we saw the pound benefiting,” said You-na Park, a currency strategist at Commerzbank AG in Frankfurt. “The market is still waiting for signs regarding the first rate hike from the Bank of England. If inflation stays at higher levels, an earlier rate hike becomes more likely.”

The pound rose 0.2 percent to $1.6218 as of 1:36 p.m. inLondon. It appreciated as much as 0.7 percent to 86.82 pence per euro before trading at 87.28 pence. It strengthened 1.1 percent to 132.28 yen.

Short-sterling futures extended a decline after the inflation report. The implied yield on the December futures contract rose seven basis points to 1.13 percent, a sign investors were adding to bets for higher borrowing costs.

Money markets now price in a 25 basis-point increase in the key rate in December, according to sterling overnight interbank average forwards, Tullett Prebon Plc data show.

Bank of England Governor Mervyn King said the recent surge in inflation is being driven by higher sales taxes and increased energy and import prices.

“Although the impact on inflation of these factors is difficult to quantify with precision, it is likely that had they not occurred inflation would have been substantially lower and probably below the target,” King said in a letter to Chancellor of the Exchequer George Osborne published today. Inflation is likely to rise further over the next few months, he said.

The Bank of England signaled it may need to raise rates later this year even as the economy struggles to build momentum. Minutes from the May 5 meeting will be released tomorrow and will show how policy makers voted.

The inflation data “appear to be mainly driven by temporary factors,” said Lee Hardman, a currency strategist at Bank of Tokyo-Mitsubishi UFJ Ltd. in London. The timing of a rate increase “will depend not so much on the inflation figures but the activity data.”

U.K. 10-year government bond yields rose as much as seven basis points to 3.45 percent, before trading at 3.38 percent. Two-year yields were little changed at 1 percent.

The rise in the VAT rate at the beginning of 2011 will add millions to the
amount businesses lose through badly documented mileage claims, according to
GlobalExpense.

In its ‘Employee Expenses Benchmark Report 2011′, the
expenses management specialist estimated that mileage claims accounted for
£1.4bn out of the £3.5bn or so spent by UK businesses on travel in
2010.

Because of the requirement for all mileage claims to be accompanied
by valid VAT receipts, GlobalExpense estimated that UK businesses failed to
recover £124m in 2010. “If behaviour is not changed businesses stand to lose
£141m thanks to the increase in VAT from 17.5 to 20%,” the report
warned.

“The VAT compliance rules are complex and difficult to enforce,”
it continued. Fuel receipts have to include both the VAT number and the
breakdown of the VAT amount and fuel should be purchased on the day of travel,
or within a reasonable period before the day of travel.

Get your tax return in on time (by 30th October if paper submission)   31st January if filed online.

Pay the tax on time (The tax is due on 31st January and interest is charged from that date.   28th February is the absolute deadline to avoid a 5% surcharge). Keep all your   tax related records.

The Revenue only guarantee to calculate your   tax if you get your return to them before 30th September. Otherwise you   may need an accountant to help you complete the calculations on your   return.

Use an Accountant – The revenue will help you calculate your   tax ‘correctly’ but they do not usually help you to minimise your tax – Would   you ask a crocodile to help you across a river?

The revenue have more   power to start ‘enquiries’ and they do not have to give you a reason for looking   in to your tax affairs.

While the rest of Europe has recovered — or is recovering — from the
recession, our economy is stagnant. Even bankrupt Greece is growing by 0.8 per
cent while we register zero growth.

‘Whatever’s going wrong, George Osborne has to fix it now or we’re doomed,’
was a comment attributed to an anonymous Cabinet member yesterday.

Labour’s Shadow Chancellor Ed Balls says Britain’s slump is caused by Osborne
cutting further and faster than other economies. But at present he’s cutting by
only 0.6 per cent.

Far too little, say Right-wing critics. They want him to make the cuts
deeper, although it’s not clear how that would lead directly to increased
economic growth.

In an otherwise corporate-friendly UK budget, released on 23 March, George Osborne announced that the supplementary charge on both oil and gas production would increase from 20% to 32% to pay for the fair-fuel stabiliser, a mechanism that would ensure fuel duty would rise in line with inflation; only when oil and gas prices are high, meaning $75 a barrel. Any lower and tax on fuel can rise more steeply.

Chief Secretary to the Treasury Danny Alexander explains the Budget priorities in this video (Youtube) and the Budget key announcements in this audio clip (Audioboo).

Read about the main announcements for each of the three Budget themes:

• A strong and stable economy

A strong and stable economy is essential for lasting prosperity. The Budget sets out a fiscally-neutral package of measures that means the Government remains on course to deliver its plan to tackle the deficit.

• Growth

The Government’s ‘Plan for Growth’, published at Budget, sets out a package of measures to support private sector investment, enterprise and innovation.  This includes measures to increase the competitiveness of the UK tax system; reduce the burden of regulation; and increase incentives for business investment.

• Fairness

Fairness is central to the Government’s economic policy.  The Budget sets out the next steps in realising a fair, simple and efficient tax, benefit and pensions system that rewards work, saving and personal responsibility.

The Budget document in full

• Budget document (PDF 900KB)

Summary of tax changes

Learn more about what the Budget is and the history of the Budget and Chancellors.

• Budget and history guide

A summary of the impact on households of personal tax changes, tax credits, benefits and indirect tax changes being implemented in 2012-13.