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Gift Aid Small Donations Scheme – mergers

HM Revenue & Customs (HMRC) guidance on the Gift Aid Small Donations Scheme in relation to mergers of charities and Community Amateur Sports Clubs (CASCs) with other charities or CASCs does not include specific reference to time limits. There are time limits for new charities and CASCs to notify HMRC if they want to apply for confirmation that they may take over the claims history of an old charity or CASC after merger.

The new charity or CASC must make its application either:

  • At least 60 days before it makes its first Gift Aid claim
  • Within 90 days after the date when the new charity or CASC began to carry on the activities of the relevant old charity or CASC

whichever falls earlier.

HMRC will be updating guidance shortly to ensure that the time limits are clear.

Because some charities and CASCs may have been relying solely on guidance, HMRC are prepared, exceptionally, to accept late applications relating to mergers made on or before 30 November 2013 provided the application is received by 28 February 2014.

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The Foreign Account Tax Compliance Act (FATCA), which is part of the US Hiring Incentives to Restore Employment Act of 2010, aims to combat tax evasion by US tax residents using foreign accounts. It includes certain provisions on withholding taxes and requires financial institutions outside the US to pass information about their US customers to the US tax authorities, the Internal Revenue Services (IRS). Failure to meet these new reporting obligations would result in a 30% withholding tax on the financial institutions.

Draft US regulations setting out the implementation details were published in February 2012.

The FATCA provisions impose new and substantial burdens on UK businesses in identifying US taxpayers, and registering and reporting information to the IRS. Significantly for UK institutions the Data Protection Act precludes UK businesses from passing the required information to the US.

The UK-US Agreement

The government (along with France, Germany, Italy, and Spain) and with the support of the European Commission took part in joint discussions with the US government to explore an intergovernmental approach to FATCA, supporting the overall aim to combat tax evasion, while reducing risks and burdens on financial institutions. A model intergovernmental agreement (IGA) was developed and published in July 2012.

The UK and the US subsequently signed an IGA – the ‘UK-US Agreement to Improve International Tax Compliance and to Implement FATCA’ – in September 2012 (see the ‘Current documents’ section below).

The IGA reduces some of the administrative burden of complying with the US regulations, and provides a mechanism for UK financial institutions to comply with their obligations without breaching the data protection laws. Under the IGA, financial institutions pass information to HM Revenue & Customs (HMRC) who will then automatically exchange this information with the IRS.

The IGA has changed since it was signed, in that Annex II has been updated by a mutual agreement entered into between the competent authorities of the UK and the US. The changes result in a wider scope of institutions and products effectively exempt from the FATCA requirements, and provide greater clarity on the categories of institutions which will be non-reporting UK financial institutions that are treated as deemed-compliant under the IGA.

Annex II of the IGA was amended by an Exchange of Notes between the two governments dated 3 June and 7 June 2013 (see the ‘Current documents’ section below).

On 12 July 2013 the US announced a delay of 6 months before the commencement of FATCA. The effect of this delay is that there will be no reporting with regard to 2013, and all current deadlines for undertaking due diligence etc will be pushed back by 6 months.

 

Download the US announcement on the IRS website (Opens new window)

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Joint Initiative on HMRC Service Delivery

Following a recommendation by the Treasury Select Committee, HM Revenue & Customs (HMRC) and agents have been working together to address concerns raised by the professional bodies about HMRC service standards. This guide tells you more about the work of the Joint Initiative on HMRC Service Delivery.

  • About the Joint Initiative on HMRC Service Delivery
  • Areas of HMRC service for improvement
  • Update on progress

About the Joint Initiative on HMRC Service Delivery:

In 2011, the Treasury Select Committee recommended that HMRC should work closely with the professional agent bodies, tax charities and businesses to look at ways of improving the end-to-end experience of dealing with HMRC.

Representatives from the following organisations attended the launch meeting of the Joint Initiative on HMRC Service Delivery:

  • Institute of Chartered Accountants in England and Wales
  • Chartered Institute of Taxation
  • Institute of Chartered Accountants of Scotland
  • Association of Chartered Certified Accountants
  • Association of Accounting Technicians
  • Association of Taxation Technicians (including the Low Incomes Tax Reform Group)
  • Tax Aid
  • Tax Help for Older People

A detailed programmer of work was agreed and a commitment given to review progress regularly. Since then, agents and HMRC have been working together to address the areas of concerns about service standards that were raised by the professional bodies.

Areas of HMRC service for improvement

A considerable amount of work has been undertaken on the areas of service delivery that were identified for improvement. While feedback from members of the professional bodies shows that there is still work to do, the group has:

  • put in place a number of measures to make sure employers are notified when their returns are late and know that penalties may be charged
  • launched a pilot exercise to test the benefits of an email channel for agents
  • created a single point of contact within HMRC for Self Assessment and PAYE aspects of bereavement cases, as well as working with the voluntary sector on improving the guidance
  • worked together to identify and develop more effective ways of communicating HMRC changes and initiatives with front-line agents
  • agreed signposting standards for incoming mail from agents which helps make sure that it reaches the right place and level of technical expertise faster
  • improved HMRC’s processing of form 64-8
  • identified the root cause of agents’ frustrations with HMRC telephone services and worked together on solutions

 

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Change to the Pension Schemes Services fax number

The fax number for Pension Schemes Services (PSS) has changed. If you need to send a fax to PSS please send it to 03000 564 568.

All our contact details on the internet and our forms and letters are being updated as we change to the new number. In the meantime to make sure we receive your fax, please send it to the number above as the fax number you have on any correspondence from us may now be out of date.

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New enhanced Stamp Duty Reserve Tax assessment service

Most Stamp Duty Reserve Tax (SDRT) is currently assessed through CREST, the electronic settlement and registration system, operated by Euro clear UK & Ireland Limited (EUI).

There has been an increasing trend recently for gross transactions in securities (stocks & shares) to be aggregated or netted off outside of CREST before settlement, which means that EUI cannot assess the gross transactions as the legislation requires.

HM Revenue & Customs (HMRC) in consultation with key market participants and stakeholders has therefore asked EUI to develop and deliver a new enhanced SDRT assessment service.

The aim of the new enhanced SDRT assessment service is to help re balance the established market practice of gross transactions being sent for reporting and assessment for SDRT at a centralized point.

It is planned that the service will go live in June 2014.

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What is Virtual Bookkeeping?

 What is a Virtual Bookkeeping?

Advantages and Disadvantages of Bookkeeping.
It is suitable for you and your company.
Virtual Bookkeeping is the Process of arranging an Accounts detail in a Managed Pattern. Different Software are easily available in the markets for Bookkeeping. And now a day different firms are opened which provide Virtual Bookkeeping Services.
Virtual  Bookkeeping Services are increasing with the High Speed Internet and Amazing Advance Bookkeeping Software.
A person with the right skills and abilities to set up and is very easy to provide a Virtual Bookkeeping Service.
Online Accounting jobs is one of only Virtual Services available in the internet.
  • What are the services he can offer i.e. bank reconciliations, sales invoicing, debt collecting.
  • Fees Charges.
  • How to provide Required Material and in which Source.
  • Ask him about the experience and if available consult with latest previous work done person and have a review about work, Ask for Qualification.
He recorded his website with quality web directories.
He provides excellent and efficient service to his new clients.

 Business Owner.

  • The owner surf online, finds the online bookkeeper via a directory, studies the website, and contacts him information.
  • They took trial of there services for a month or two and decide if there services are good quality.
  • They are happy and continues with Virtual Bookkeeping service provider for a long time.
To get you started try Durant Services which has a worldwide directory of office assistants, bookkeepers and accountants.

for having a Virtual Bookkeeping Services.

  • The main advantage to have a Virtual Bookkeeping  is that there is no employee costs to cover – no need to find more furniture and equipment, pay a wage, pay employee taxes, vacation pay, sick leaves…..
  • It’s hard to find a local town city bookkeeper if you live far from the Office then you can search on Web for online Bookkeeping Service Provider.
  • You will easily get used to the vast array of electronic methods available for getting your documents and information to the Virtual Bookkeeping service provider.
  • It is difficult to choose from a vast range of Virtual Bookkeeping Service providers.

Protect your business against Unlawful Virtual Bookkeepers.

  • Consult your business partner or Business Friends about it. Then can refer you good and experienced persons.
  • Phone them take a meeting and talk detailed about the Bookkeeping and procedure and ask him what his way of work for completing.
  • Take a test give them a trial period and in this trial period give them a specific time period to complete the work.

 

Is Virtual Bookkeeper right for you?

Probably Not If…..
  • If you are not familiar  with Electronic Media, like sharing the files with the Virtual bookkeeper, Or General using the Computer.
  • You prefer face to face contact. For Example Virtual Bookkeeper uses Skype, Google Talk, Yahoo Messenger or other similar platform for assisting the Owner for Work Progress.
  • Your bookkeeping is very involved, with a huge number of business transactions, or a lot of complicated business transactions such as inventory control or foreign exchange sales and purchases.

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What are processes of Double Entry Bookkeeping.

6 step guide for Processing Business.

Doube Entry Bookkeeping is where you twice to enter the system. The value of each transaction
Learn the principles of this system, and your confidence will grow by leaps and bounds if you manually carrying books or using the program!
Following are the Six Steps of Double Entry Bookkeeping.
  1. Collect complete Business transactions produce called “Documents”.
  2. The information from the Documents are recorded into “Journals”.
  3. The data is taken from the Journals and entered into “Ledger Books”.
  4. Each Ledger Book contains various accounts, listed in “Chart of Accounts”.
  5. These accounts are totaled and balanced in line with the “Accounting Equation”.
  6. The accounts are balanced by using “Debits and Credits”.

 

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Tax Information Exchange Agreement

A Tax Information Exchange Agreement (TIEA) between the United Kingdom and Uruguay was signed in London on 14 October 2013 by David Gauke, Exchequer Secretary to the Treasury, and Julio Moreira Morán, Ambassador of the Oriental Republic of Uruguay.

The new TIEA with Uruguay will enable the UK and Uruguay to exchange information to OECD and international tax standards to ensure that the right amount of tax is paid in each country in the future.

Uruguay has signed 13 other TIEAs to date.

The text of the TIEA can be accessed on the HM Revenue & Customs website at:

Tax Information Exchange Agreements signed/not in force

The text will shortly be laid as a Schedule to a draft Order in Council for consideration by the House of Commons. It will then also be available from the Stationery Office.
The Agreement will come into effect as soon as each government has completed the necessary procedures to give effect to it under its domestic laws.

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Financial Statement: Long-Term Liabilities

Long-term liabilities beyond the current cycle, turn the duties over and above the current year work, or are doing. Usually, this kind of long-term debt as corporate bonds, issued. We have here a part of a company’s capital structure as equity loan comparison look at how, and to investigate how a company uses debt path….

You will either operating or finance charges as long term that can describe. Operating liabilities are liabilities in the ordinary course of business, but they raise cash from investors by the company are sold. The company is the result of increased cash funding obligations that are debt instruments. In return for the money and should be paying the principal plus interest – often a previous period – in other words,  the company said, the debt.
Operations and debt financing from both the company’s future will require cash outlay is the same. Debt financing decisions triggered by an enterprise senses and therefore often provide clues about the company’s future prospects because it is, however, to keep them separate in your mind is useful.

Debt is Cheaper than Equity :

Capital structure, debt, equity and convertible bonds like (discussed below), as well as hybrid devices, in which the proportion of a company refers to the various funding sources. A simple capital structure is the ratio of total capital, long-term debt.
Cost of debt (interest) is defined as the value of the equity, profit and loss account is not shown because equity than debt for the company is a cheaper source of funding forget It’s easy. The loan is cheaper for two reasons.) to equity. Second, interest payments are tax deductible, and lower tax bill effectively creates money for the company.
To explain this idea, interest and tax (EBIT) of the first $ 200 of earnings a company can consider. The company has a 50 percent tax credit and issued 100 common shares, the Company $ 1.00 (see bottom left-hand column) earnings per share (EPS) will produce.

We perform a simple conversion of debt to equity is right. In other words, we 0-0.2 loan growth in total capital ratio, capital structure that introduce significant leverage. To do this we need to (borrow) the Company issued $ 200 of debt, and use the money to buy. 20 shares ($ 200 / $ 10 Per Share = 20 shares) will be converted to the shareholders? No. of shares falling to 80 companies (10% per year to $ 20 to borrow $ 200 is charged) must pay annual interest. Remember that the tax cuts, but the profit of the number of shares. Our debt to equity over the original! Conversion of EPS .

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UK and Liechtenstein update tax deal

More than 2,400 people have registered to disclose unpaid tax under the Liechtenstein Disclosure Facility (LDF) with £363 million already paid in tax bills, HM Revenue and Customs (HMRC) announced today.

The LDF is now expected to bring in up to £3 billion by 2016 based on the current numbers of disclosures.

The figures were released as the United Kingdom and the Principality of Liechtenstein prepared to sign a double taxation agreement (DTA) today. The DTA will remove obstacles to investment and other cross-border economic activity and will give businesses increased certainty about their tax treatment.

The agreement, the first between the two countries, will be signed in London by Dr Klaus Tschütscher, Prime Minister of the Principality of Liechtenstein, and David Gauke MP, Exchequer Secretary to the Treasury.

At the same time, the UK and the Principality of Liechtenstein will sign a third Joint Declaration on the Memorandum of Understanding (MOU) on cooperation in tax matters. This further clarifies the Liechtenstein Disclosure Facility [HMRC] and the Taxpayer Assistance and Compliance Programme [Liechtenstein] arrangements between the parties. It makes available a Single Charge Rate of 50 per cent that Liechtenstein investors might apply to calculate undisclosed UK tax liabilities for the tax year 2010/11. The MOU will be signed by Dr Tschütscher and Dave Hartnett, Permanent Secretary for Tax in HMRC.

The Exchequer Secretary, David Gauke, said:

“The Government is determined to clamp down on tax avoidance at home and abroad. The UK has the largest tax treaty network in the world but, until now, Liechtenstein was the only country in the European Economic Area we had no agreement with. This new treaty and the existing disclosure facility show that the net is closing on those who try to evade their UK tax liabilities by using offshore structures – there are fewer and fewer places to hide.”

Dave Hartnett, Permanent Secretary for Tax at HMRC, said:

“The third Joint Declaration recognises the overwhelming success of the LDF. HMRC originally estimated the number of people who would register for the disclosure facility at 2,000, and that it would probably produce £1 billion. In light of the ongoing success of the LDF we now anticipate the arrangements will produce up to £3 billion from a much larger number of people.”

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Top tips in last month for renewing tax credits

With only one month left to renew tax credit claims, HM Revenue & Customs (HMRC) has issued top tips for claimants.

People have to renew their claims by 31 July – or their payments could stop.

Alison McDonald, Director, Benefits and Credits, said:

“The sooner you renew, the sooner we can check your payments are right. You should check your details carefully as any errors you make now could mean you receive less money.

“We are publishing top tips to remind people who need to renew their tax credits to do so, and how.”

Tax Credit renewal tips

1. If you don’t get your pack by 30 June, contact the Tax Credit Helpline.

2. Renew your tax credits claim as quickly as possible. The sooner you do, the sooner HMRC’s Tax Credit Office can work out your payments for the coming tax year.

3. You only need to contact HMRC if you receive an Annual Declaration form as well as an Annual Review notice.

4. You don’t need to contact HMRC if you receive only an Annual Review notice (as your claim will be renewed automatically), unless your personal circumstances have changed.

5. Check all the information in the renewal pack, making sure all the changes reported in the last year are included. If anything isn’t right, contact the Tax Credit Office.

6. Report any changes – including bank details – by calling the Tax Credit Helpline on 0345 300 3900, or in writing.

7. If you contact the helpline, have handy: your National Insurance number; your password, if you have one; your renewal pack; details of any new changes in circumstances; the amount of your household’s total income for the last tax year.

8. You should follow the instructions on your form to confirm your claim for last year even if your circumstances have changed and you are no longer eligible for the current year.

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Online sellers have just one week to register for tax opportunity

People trading on the internet who haven’t paid all the tax they owe have one week left to take part in an opportunity offered by HM Revenue & Customs (HMRC) to get their tax affairs in order on the best terms available.

Under the time-limited opportunity, known as the e-Markets Disclosure Facility, online marketplace traders who come forward between now and 14 June to register their intention to take part in the campaign can benefit from lower penalties than those who HMRC catches up with..

The campaign is aimed at people using online marketplaces to buy and sell goods as a trade or a business and who are not up to date with their taxes. People who sell only a few personal items, however, and who are not traders are unlikely to be liable to pay tax on what they sell, and are not being targeted by this campaign.
Those who are unsure whether their e-marketplace activity could be seen as trading can visit HMRC’s website (http://www.hmrc.gov.uk/campaigns/emarket.htm) and can watch a YouTube video for advice (http://www.youtube.com/watch?v=uptdjVD2LgI).

Marian Wilson, head of HMRC Campaigns, said:

“We want to make it easy for online marketplace traders to contact us and register their intention to take part in the campaign. If you owe tax and don’t get in contact, do not assume that HMRC will not catch up with you soon. It’s better to come to us before we come to you.”

Last month, HMRC wrote to more than 30,000 people trading on the internet to let them know about the e-Markets Disclosure Facility. Additional information, from a wide range of sources, on more than 100,000 people is currently being assessed. After the 14 June deadline, HMRC will begin contacting online traders who did not come forward if the department believes they owe tax. Penalties of up to 100 per cent of the tax owed, or even a criminal investigation, could follow.
People who make a full disclosure:
will be offered a simple and straightforward way to put their tax affairs right
may not be charged a penalty at all, with most receiving a penalty of no more than 10 per cent of the tax they owe.
More than £510 million has been raised by HMRC from voluntary disclosures during campaigns, and a further £125 million from follow-up activity. There have been more than 18,000 investigations, with a further 4,600 still ongoing.

Campaigns launched so far have targeted offshore investments, medical professionals, plumbers, VAT defaulters, coaches and tutors, and electricians.

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Tobacco smugglers sentenced

Three men involved in tobacco smuggling and money laundering have been sentenced after 800kg of tobacco and £90,000 in cash were seized in Staines.

HM Revenue and Customs (HMRC) officers arrested Dean Butt at his home in Tithe Lane, Wraysbury, near Staines, in May 2012 on suspicion of being involved in tobacco smuggling. As he was being arrested a van driven by Stephen George and carrying Gary Bear as a passenger approached the property. When George saw the officers he tried to flee but found his exit blocked by Customs vehicles.

Searches of the property revealed 800kg of tobacco concealed in cardboard boxes, and £17,000 in cash. A further £73,000 was discovered in the van.

Zoe Ellerbeck, Assistant Director, Criminal Investigation, HMRC, said:

“Our investigation caught Butt, George and Bear red-handed. Not only did we discover a significant haul of tobacco, but also the profit of what was clearly an ongoing enterprise. The quick thinking of our investigators in preventing George’s escape meant that a larger sum of cash was also seized.

“HMRC works tirelessly to pursue those who smuggle tobacco and cigarettes for profit. We do this to protect the livelihoods of honest retailers.”

Butt claimed that the money, including £15,000 found hidden in his loft, was “personal funds”. He also said that a further £1,000 found on him was to pay a gas bill.

During interview, George, from Hayes, West London, denied knowing Butt or visiting his Tithe Lane property, saying that he had driven into the lane to buy burgers from the local butcher. The money in the van had come from gambling, he said. Bear, of Cowley, Uxbridge, said that he was simply accompanying George on a drive.
The duty evaded on the tobacco is more than £131,000.
Butt and Bear had denied evading excise duty and money laundering, but were found guilty after a trial at Reading Crown Court. George had entered a guilty plea earlier, and all three returned to the court for sentencing today.

Butt was sentenced in relation to evading duty on 800kg of tobacco; Bear and George in relation to 400kg.

A forfeiture hearing will take place at a later date concerning the cash seizures.

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£2.4 million payback for high life fraudster

A businessman, jailed for his role in a £38 million VAT fraud, has been ordered to repay crime profits of £2.4 million, within six months, or stay in jail for a further seven years.

Daamin Kaif, from Surrey, was jailed for six and a half years in 2011. He was one of a ten-man organised crime gang who together received prison sentences totalling over 40 years.

HM Revenue and Customs (HMRC) investigators uncovered a complex conspiracy involving a chain of companies importing mobile phones and computer equipment from Dubai, via Europe, set up solely for the purpose of stealing money from the UK government.

David Cowie, Assistant Director of Criminal Investigation for HMRC, said:
Daamin Kaif, enjoyed a lavish lifestyle funded by his involvement in the fraud. He enjoyed numerous trips to Dubai, invested in property, including a house worth £2 million in Virginia Water, Surrey, and even purchased a piano from Harrods, London, for £14,000.

“Our investigations do not stop with the sentencing of those involved in fraud. We will also try to stop criminals profiting from their crimes and reclaim as much as possible for the UK taxpayer.”

Two of the companies, Sky Computers UK Ltd, based in Middlesex, and Maxro Technology Ltd, based in Surrey, were at the centre of the plot.

The goods were sold through a series of companies with VAT added, but the tax was never paid to HMRC. Once the goods had been sold on a number of times they would be exported back to the EU. The exporter would then claim a VAT repayment on the purchase of the goods – although this was never paid in the first place.

This money would then be siphoned off and laundered through overseas companies in Dubai and Spain and the gang would divide the dishonest profits of the fraud.

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