From 2015 HMRC can access your bank account if you don’t pay up!

According to the HRMC “The vast majority of taxpayers pay their fair share of tax, and pay it on time. The latest statistics suggest that 93 per cent of tax due is paid, helping to reduce the deficit and fund the UK’s public services.

However as part of a wider program by the HRMC to collect tax due by finding people who deliberately hide their income and wealth to evade their taxes, HM Revenue & Customs have been given the power to access bank accounts.

From 2015, HMRC investigators will be able to access the bank account of anyone who refuses to pay a tax bill of more than £1,000. Currently, the taxman can seize only the assets of businesses and individuals who ignore payment demands.

The Chancellor expects to recover £290m in the 2015 financial year and £1.23bn the year after by forcing those using registered tax avoidance schemes to pay disputed money to the state.

There is a big difference between Tax Avoidence and Tax Evasion and it's worth reminding ourselves.  Tax avoidance is generally the legal exploitation of the tax regime to one's own advantage, to attempt to reduce the amount of tax that is payable by means that are within the law whilst making a full disclosure of the material information to the tax authorities. Examples of tax avoidance involve using tax deductions, changing one's business structure through incorporation or establishing an offshore company in a tax haven.

By contrast tax evasion is the general term for efforts by individuals, firms, trusts and other entities to evade the payment of taxes by illegal means. Tax evasion usually entails taxpayers deliberately misrepresenting or concealing the true state of their affairs to the tax authorities to reduce their tax liability, and includes, in particular, dishonest tax reporting (such as under declaring income, profits or gains; or overstating deductions).

Tax avoidance may be considered as either the amoral dodging of one's duties to society, part of a strategy of not supporting violent government activities or just the right of every citizen to find all the legal ways to avoid paying too much tax. Tax evasion, on the other hand, is a crime in almost all countries and subjects the guilty party to fines or even imprisonment. Switzerland is one notable exception: tax fraud (forging documents, for example) is considered a crime, tax evasion (like under declaring assets) is not.

You can rest assured though that clients of Orange Genie Accountancy will never be put in to this position as we are professional accounts and proud to be fully compliant, meaning that you can be certain you will never fall foul of the rules.

Orange Genie Accountancy will look after you every step of the way so contact one of our specialist accountants now to see how we can help you to avoid any unnecessary penalties.

https://www.orangegenie.com/accountancy 

accountancy@orangegenie.com 

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