HMRC tax planning and payment plans

Barely a day seems to pass without reading some alarming article or other about HM Revenue & Customs “clampdown on tax dodgers” and the ever-increasing financial penalties faced by those who get their tax affairs wrong.

And with the 2011/12 “tax gap” (the difference between the amount of tax that the government say should be collected and the amount actually collected) running to £35bn, there is little wonder that HMRC is taking an aggressive approach to blatant instances of tax avoidance and evasion.

But it isn’t all bad news. With careful management you can greatly reduce your chances of running into problems with HMRC. So, what are the keys to success?

• Submit your tax returns on time. Late returns attract financial penalties and significantly increase the chances that HMRC will review your tax affairs in detail.
• If you cannot pay your taxes, talk to HMRC before they are due. In most reasonable cases, late payment penalties can be avoided and a manageable payment plan agreed.
• If HMRC ask questions about your tax affairs answer them quickly and fully. Don’t be fooled into thinking that the taxman will go away if you ignore him, or give incomplete replies to his questions.
• If you become aware of anything wrong in your tax affairs, disclose this to HMRC straight away. A voluntary approach will significantly reduce or eliminate penalties.
• If you are offered some tax planning advice that sounds too good to be true, it probably is. Be sure to take sound professional advice.

John Norman Tax Consultancy Limited specialise in helping individuals and businesses minimise their tax risks, deal with difficult HMRC enquiries/investigations, and payment problems.

Should you find yourself in a position where your business has HMRC tax arrears and your business trades within a business to business setting, you may be able to release funds from invoices you have outstanding with your customers.  Selective Invoice Finance is ideally suited to businesses who need to access cash quickly without any long term commitment. Releasing funds from your outstanding invoices may help you settle HMRC matters more quickly. Finding the correct financial solution to work alongside your tax planning is a key to success.

For further information regarding this article contact John Norman – www.jn-tc.com e: john@jn-tc.com

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