Spring into action for HMRC changes
April 1st 2010 April has arrived and new rules for businesses who want to reschedule large tax debts under HMRC’s Business Payment Support Service (BPSS) come into effect this month.
The BPSS gives viable businesses, experiencing temporary difficulties paying their taxes, the opportunity to reschedule their tax payments to a more affordable timetable, as part of a ‘time to pay’ arrangement.
These arrangements can cover PAYE,National Insurance,VAT or any other HMRC taxes.
From April 2010, businesses seeking time to pay arrangements on tax debts of £1m or more must provide an Independent Business Review (IBR) in support of their request.
The IBR must be carried out by a qualified professional advisor and be paid for by the business making the request.
“In view of the amounts of tax involved, HMRC needs to ensure that decisions about large time to pay arrangements are supported by a comprehensive audit trail,” says HMRC’s Nick Lodge.“We remain committed to supporting compliant, viable businesses through periods of temporary difficulty by providing time to pay arrangements under the BPSS.”
For further information on BPSS, go to www.hmrc.gov.uk/pbr2008/bu siness-payment.htmor contact the BPSS helpline on 0845 302 1435.
The following VAT changes also came into effect on 1 April:
• VAT-registered traders with annual turnovers of £100,000 or more (excluding VAT) will have to file their VAT returns online and pay their VAT electronically.
• All businesses registering for VAT from April will have to file their returns online and pay electronically.
• All VAT cheque payments sent by post will be treated as being received by HMRC on the date when cleared funds reach HMRC’s bank account.
Businesses must allow enough time for their cheque to reach HMRC and to clear its account no later than the due date shown on their VAT return, or they may be liable to a surcharge for late payment. This change does not affect any cheque payments made by Bank Giro.
• Anyone issuing an invoice that includes VAT, when they are not entitled to charge it, will be subject to a new VAT wrongdoing penalty.
From May, two key PAYE changes
come into effect:
• All employers must file their Employer Annual Return (P35 and P14s) online by the 19 May deadline – there is no longer a paper filing option for small employers with fewer than 50 staff. File your return on paper, even if it’s before 19 May, and you could receive a penalty.
• HMRC is also introducing new penalties for late payment of PAYE.
• To file your VAT or PAYE online, you must first register with HMRC’s online services by visiting
www.online.hmrc.gov.uk, clicking ‘Register’ under the ‘New user’ section and then following the instructions.
“If you’re a VAT-registered trader or an employer,make sure you’re up to speed with all the VAT and PAYE changes coming in this spring. If you’re well prepared for the changes, you’ll help avoid a last-minute rush,” says Stephen Banyard of HMRC. More articles from Cleaning Matters: | 
