Monthly Archives: July 2013

Single Compliance Process

HMRC have been trialling a new approach to enquiries, known as the Single Compliance Process (SCP).

Following feedback from the trial HMRC have now agreed that the opening letter, which advises the taxpayer that they are to be subject to the SCP, will give the taxpayer seven days to tell HMRC if they wish to deal directly with the matter themselves. If the taxpayer does not reply, HMRC will contact the taxpayer’s agent within 14 days to progress the case. If contact or progress cannot be made, then HMRC will go back to the taxpayer.

If you receive a letter advising that you are to be subject to a SCP then do please get in touch so we can deal with this matter on your behalf.

Internet link: HMRC news

Non statutory expenses

HMRC have introduced an optional system of ‘simpler income tax for smaller businesses’ which takes effect from April 2013 for smaller unincorporated businesses. As a consequence of this change, HMRC are withdrawing some non-statutory ‘business mileage’ deductions and existing agreements for ‘board and lodging’ private use adjustments as these have been superseded by the ‘simplified expenses’ rules.

HMRC have issued guidance in the form of a Tax Brief which sets out:

  • transitional arrangements for the withdrawal of ‘board and lodging’ agreements.
  • how businesses can use the ‘simplified expenses’ rules for business mileage, ‘board and lodging’ private use adjustments and flat rate adjustment for use of home.

Please do get in touch if this is something which would be of interest to you and your business so we can bear it in mind when completing your business accounts.

Internet link: Tax Brief