Hacked by Loard Mahdi

Read more...

Breaking news from the BBC Paper tax returns to be replaced by digital by 2020

Read more...

HMRC extend the use of Electronic Data Interchange. 08/06/12

Read more...

Recent changes to VAT.

Read more...

Most wanted tax fraudster wants to be arrested.

Read more...

Contact Us

News Items

Tax Tips

Brilliant with numbers
Great with people
Clear and precise with advice
Timely and cost effective
In touch with issues that face our clients
Mindful of our client’s long term strategic goals


Helping Your Business is Our Business


Call us now on 023 8083 6900 ABDS Home

News - 12 May 2014

Concerns over new tax powers in Budget

The Treasury Committee has raised concerns about the plans, unveiled in this year's Budget, to allow the tax authority to settle unpaid demands by taking money from people's bank accounts.

However, in a wide-ranging report, the committee did welcome another Budget plan - to allow greater flexibility on how pension savings can be used.

Stuart Coleman, Manager of the Tax Department of ABDS comments:
“In his budget speech, Mr Osborne outlined plans for HM Revenue and Customs (HMRC) to recover tax debts from anyone who owes more than £1,000 in tax or in tax credits. This would allow the tax authority to seize the tax owed directly from debtors' bank accounts.”

The committee said the plan was problematic owing to HMRC's performance in the past when it has failed to accurately calculate tax bills. "People should pay the right amount of tax. But HMRC does not always ask for the right amount," said committee chairman Andrew Tyrie.

HMRC will only target those who have long-term debts and have received at least four demands for payment and will ensure that at least £5,000 is left in total across all debtors’ accounts, including savings accounts, after the unpaid tax is seized.

The Low Incomes Tax Reform Group has called on HMRC to give more concrete assurances about the right to appeal against any seizure.

But the ACCA accountancy body, which after the Budget described the plans as "seriously draconian", now calls them "less fearsome than first thought" after more detail was published.

The plans are now going through a consultation process. If approved by Parliament, they will take effect in 2015-16.

If you need any help and advice with your Tax returns and declarations, contact Lavinia Newman, Stuart Coleman or Tonmoy Kumar to discuss how ABDS can help in all your financial and business planning.

ABDS Chartered Certified Accountants of Southampton.
Tel: 023 8083 6900  E-mail: abds@netaccountants.net

Brilliant with numbers   
Great with people  
Clear and precise with advice
Timely and cost effective 
In touch with issues that face our clients
Mindful of our client’s long term strategic goals

Helping Your Business is Our Business
 

« Back to News