As we enter the new tax year, I want to share with you my top 10 tips for saving tax. The main driver for these tips to see if we can move Tax Freedom Day. You may not have heard of Tax Freedom day, it is important to every taxpayer in the UK. Tax Freedom day is a measure of when we in the UK stop paying tax and keep all our earnings for ourselves.
Are you concerned about the ever increasing burden of complying with changing tax regimes and the potential cost of simply making an error. Or have you been on the receiving end of an HMRC enquiry and have had to pay the cost of professional support, even if nothing untoward has been discovered.
This is a common complaint of many of the businesses and organisations we come across and with the prospect of a random selection everyone is potentially at risk. What you may not know is that HMRC have invested over £900m redeploying 2,500 officers into compliance this year with the intention of raising £7bn of additional tax.
I'm sure that most Charities would be horrified at the thought that they could be committing tax fraud through their payroll. But according to the Taxman many charities could well be doing just that.
Following the release of the HMRCs Code of Practice 9 (COP9) the definition of the word fraud now has a new meaning. Payroll fraud conjures up images of dodgy dealing and deliberate deception to gain an advantage.
Under COP9 charities that underpay tax fall into one of two camps. Either they have made a mistake or they are committing a fraud. There are no grey areas or middle ground, if you have underpaid tax and it wasn't a mistake you are committing a fraud.