The soaring number of tax tribunals waiting to be heard is 10,000! This is a 783% increase in just one year. This goes in conjunction with the increase in first t-eir tax tribunals, which reached 46,000, a 84% increase. Surprisingly, these record breaking numbers are almost as bad as the number in 2009, when the global economic crisis was in place.
It is expected that this upward trend is likely to continue, due to HMRC’s latest campaign against umbrella companies that have not paid their taxes, due to VAT or tax avoidance schemes. HMRC is currently undergoing compliance checks for those umbrella companies, both large and small.
Note: For contractors who are considering signing with an umbrella company, it’s important to note that the umbrella company should be paying VAT. And it goes without saying that HMRC will investigate as soon as it spots any suspicious activity.
HMRC advises umbrella companies to seek professional advice from accountants and tax advisors to avoid errors and ensure they are compliant with the latest guidelines. It’s a known fact that FTT are highly costly and time-consuming for the UK taxpayer, which is why professional representation is highly encouraged.
Are you looking for compliance services, and tax-related services? Do you want to fully understand your tax liabilities and how you can fulfill them? Are you aware of HMRC’s deadlines and latest guidelines?
Elena Meskhi & Co’s team of certified accountants and tax advisors would be delighted to assist you. Simply purchase the desired accounting package, and book the discovery call (you will be redirected to the booking page after purchasing the package). If you want to book a discovery all before you make any purchases, then kindly follow this link, and book a call.
