Orange Genie News

HMRC have revealed the ‘top ten oddest excuses’ for late tax returns. Among the reasons people have given for sending in their returns late include a self-employed builder who blamed the death of a goldfish and a woman who blamed a volcanic eruption.

The list is as follows:

1. My pet goldfish died (self-employed builder);
2. I had a run-in with a cow (Midlands farmer);
3. After seeing a volcanic eruption on the news, I couldn’t concentrate on anything else (London woman);
4. My wife won’t give me my mail (self-employed trader);

Most people are aware of the need to consider insurance for life’s unexpected and unwanted eventualities. As an employee, many will have been used to benefiting from protection provided by their employers : life cover and sickness pay, whilst others will have taken the personal step to arrange their own policies. Not all policies are equal and it is important to regularly review the protection in place to ensure it continues to offer you and your family the best chance of not experiencing financial difficulty should the worst ever happen.

Over recent years Freelancers and Contractors have grown in numbers and now represent a substantial element of the labour market. Many contractors choose to enter the labour market through their own Personal Service company and as such they are able to structure their rewards in a way that is most suited to their circumstances. Traditionally many contractors choose to withdraw funds through a combination of salary and dividends – this is often a concept not understood by high street lenders and is sometimes cited as a barrier to choosing the contracting route.

A lifestyle decision to enter a contracting career and legitimate tax planning should not detract from a contractors ability to obtain a competitive mortgage. Orange Genie Accountancy work closely with Contractor Financials who specialise in providing mortgage advice to contractors

Many skilled British workers choose the flexibility and freedom of being self-employed, where they take responsibility and control for their own working affairs, including ensuring that the correct tax is paid on their earnings.

This way of working also suits the needs of many organisations which rely on the flexible workforce as and when they need them, without having to make a financial commitment to employ workers on a full time basis.

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.

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