Government to Waive VAT on Military Wives’ Charity Single
December 21, 2011 by Davenports Tax Team
Filed under Accountancy News
The Chancellor of the Exchequer, George Osborne, has today announced that the Government will waive VAT on sales of the Military Wives choir’s Christmas single by making an exceptional one-off charitable donation to the Royal British Legion, and Soldiers, Sailors, Airmen and Families Association (SSAFA), the charities chosen to benefit from sales of the song. The donation will be equivalent to the sum of the VAT receipts collected on sales.
Recognising the service of the armed forces and the high levels of public support for the single, as well as the exceptional contribution both charities make through their work with members of the forces and their families, George Osborne and Defence Secretary Philip Hammond want to maximise the donation that the charity receives by adding the VAT equivalent.
George Osborne said:
“Our armed forces demonstrate incredible commitment to the nation and make sacrifices for all of us. The Military Wives choir is doing a great job of raising money for this hugely worthy cause. We will donate the tax collected on the single so that as much as possible of the money spent by the public on this fantastic song goes to charities helping our armed forces and their families this Christmas.”
Philip Hammond said:
“Christmas can be a particularly difficult time for our brave service personnel deployed on operations, but also for their families at home. I am delighted to be supporting the Military Wives choir in this initiative, who in turn are supporting our Armed Forces community.”
Tutors and Coaches Have Less Than One Month to Clean The Slate On Tax
December 8, 2011 by Davenports Tax Team
Filed under Accountancy News
Private tutors and coaches have less than a month left to tell HM Revenue & Customs (HMRC) about any tax that they owe.
They were offered a special tax plan - the Tax Catch Up Plan - in October this year. Registering by 6 January 2012 ensures that tutors and coaches don’t lose out on the best terms to disclose and pay what is owed.
The Tax Catch Up Plan is for people providing tuition or coaching, regardless of whether they have a registered qualification. It is aimed at those who profit from tuition and coaching as a main or secondary income, on which the correct tax has not been paid.
The opportunity is available to people teaching traditional academic subjects, fitness and dance, musical instruments, art, life coaching, personal training and other instruction.
After 6 January 2012, using information pulled together from different sources, HMRC will investigate those who have chosen not to come forward.
Marian Wilson, Head of HMRC Campaigns, said:
“Tutors and coaches who have notified us of their intention to disclose unpaid tax will have until 31 March to tell us what they owe and make arrangements to pay.
“From January we will use the information at our disposal to investigate tutors and coaches who have not declared their full income. I therefore strongly urge anyone in this group who thinks they may have outstanding income tax liabilities to get in touch with HMRC and get their tax affairs in order.
“This is the first step for those with undisclosed income or gains to avoid a full tax investigation and much higher penalties. Contact us before we contact you.”
The Tax Catch Up Plan has two stages:
- By 6 January 2012, tutors/coaches/instructors must register with HMRC to “notify” that they plan to make a voluntary tax disclosure.
- By 31 March 2012, those who have registered to notify must tell HMRC what they owe and pay the tax, interest and penalties due.
People can register online by completing a notification form - www.hmrc.gov.uk/ris/tcup/index.htm - or by calling HMRC on 0845 601 8817. A dedicated team is ready to help, Monday to Friday, 08:00 until 19:30.
If you think you may fall into this group, contact Davenports today to see how we can help
HMRC Targets Fashion Houses Exploiting Interns
December 8, 2011 by Davenports Tax Team
Filed under Accountancy News
Fashion houses are the latest targets of an HM Revenue & Customs campaign aimed at ending the exploitation of interns.
HMRC has written to a number of fashion houses and designer labels warning them about non-payment of the National Minimum Wage.
The letters are being sent to fashion houses that exhibited at London Fashion Week in September 2011, and are expected to do so again at the capital’s Fashion Week in February.
Michelle Wyer, HMRC’s Assistant Director for National Minimum Wage, said:
“These letters give fashion houses plenty of warning that they are under scrutiny. If they are not playing by the rules, now is the time to put things right. Non-payment of the national minimum wage is not an option.
“Our message is clear: don’t wait for us to come knocking on your door; put things right now and avoid a penalty and possible prosecution.”
Letters to 102 fashion labels have been issued, with compliance visits due to begin early in the New Year.
If you have received one of these letters, why no get in touch to see how Davenports can help
