It is a letter. I have called the agents dedicated phone number. They say it is not impossible that a new UTR has been issued. But we have to wait until 64-8 has been processed before they can discuss it further with us.
It just shows how short of funds our government is.
If ESC16 is enacted and the amount that can be taken out as capital distribution is restricted to £4000, this is going to put off the incorporation route a lot of small businesses. Oh and guess what sole traders and partners pay a lot more tax and NIC. Now fancy that.
No one will deny that being able to use ESC16 as a possible exit route was an extra incentive to incorporate..
This is going to seriously affect future advice to clients.
At least they have not changed the 100% BPR treatment of unlisted (trading/holding company of trading group) company shares yet...
Between the new draconian penalty regimes, reduction in AIA and Capital Allowances, reduction in Basic rate band limit, vat on benefits in kind etc, etc, etc,... It is no surprise that businesses don't have any money to invest and create jobs and that the economy is shrinking..
It is all so short sighted, I despair of our policy makers. But I guess they don't care as they will still get their fat pension when they live office..
We have a client has also paid late each month by a few days and has also received a late payament penalty in excees of £5000.
We have appealed but so far we have been unsuccessful as their arguments is it is in the legislation so there.
This is theft pure and simple as far as I am concerned. We are not giving up on fighting this.
One of my colleague has suggested that we should appeal to say that only one payment was late and not paid until after the end of the tax year. All the others were paid in advance . Not sure this would work but what the hell, we have to try something for the client sake...
The courts have slapped HMRC on the wrist in respect of late filing penalties for P35 as being excessive. I think we could have a case here... But our government is so short of funds, bless them... Grrrrr.
I can appreciate that the penalty should apply on amounts still unpaid at 19/22 (if paid by Bacs) April after end of tax year to which payments relates but to charge 4% interest on something which is only 2 or 3 days late.
They should calculate the interest due if taxpayer is late more than once based on the number of days each payment was actually late.
Like penalties on keeping incorrect records this a qucik and easy way to fill up the Treasury's coffer.. This is extorsion on a grand scale...
My answers
It is a letter. I have called the agents dedicated phone number. They say it is not impossible that a new UTR has been issued. But we have to wait until 64-8 has been processed before they can discuss it further with us.
Will report back once I hear more.
Thanks for comments
The " SWISS" experience
OCU means :
Offshore Co-ordination Unit not Operational Command Unit
Similarity, no doubt in an effort to confuse or frighten the taxpayers into submission...
I am becoming such a cynic...
ESC 16
There is an excellent article published by the ICAEW tax faculty on its website on the subject... http://www.ion.icaew.com/TaxFaculty/23106?utm_source=memberalert&utm_medium=newsitem&utm_term=oct11&utm_campaign=practice
It just shows how short of funds our government is.
If ESC16 is enacted and the amount that can be taken out as capital distribution is restricted to £4000, this is going to put off the incorporation route a lot of small businesses. Oh and guess what sole traders and partners pay a lot more tax and NIC. Now fancy that.
No one will deny that being able to use ESC16 as a possible exit route was an extra incentive to incorporate..
This is going to seriously affect future advice to clients.
At least they have not changed the 100% BPR treatment of unlisted (trading/holding company of trading group) company shares yet...
Between the new draconian penalty regimes, reduction in AIA and Capital Allowances, reduction in Basic rate band limit, vat on benefits in kind etc, etc, etc,... It is no surprise that businesses don't have any money to invest and create jobs and that the economy is shrinking..
It is all so short sighted, I despair of our policy makers. But I guess they don't care as they will still get their fat pension when they live office..
Experience of PAYE late payment penalties?
We have a client has also paid late each month by a few days and has also received a late payament penalty in excees of £5000.
We have appealed but so far we have been unsuccessful as their arguments is it is in the legislation so there.
This is theft pure and simple as far as I am concerned. We are not giving up on fighting this.
One of my colleague has suggested that we should appeal to say that only one payment was late and not paid until after the end of the tax year. All the others were paid in advance . Not sure this would work but what the hell, we have to try something for the client sake...
The courts have slapped HMRC on the wrist in respect of late filing penalties for P35 as being excessive. I think we could have a case here... But our government is so short of funds, bless them... Grrrrr.
I can appreciate that the penalty should apply on amounts still unpaid at 19/22 (if paid by Bacs) April after end of tax year to which payments relates but to charge 4% interest on something which is only 2 or 3 days late.
They should calculate the interest due if taxpayer is late more than once based on the number of days each payment was actually late.
Like penalties on keeping incorrect records this a qucik and easy way to fill up the Treasury's coffer.. This is extorsion on a grand scale...