Business Beware- HMRC Aware of all debit and credit cards takings!
Throughout all investigations enquiries now HM RC Will have first reverted to your car terminal supplier provider Full details of all car taking normally a month by month basis in an effort to establish just how much of your turnover is on card and therefore how much cash you have declared.
This is being particularly fruitful for HM RC when looking at the restaurant and takeaway trade and where your cash percentage Falls below their expectations an enquiry is launched. I have seen recently many restaurants and takeaway showing far less than 20% cash takings and HM RC see this as far lower than they expect. Indeed H MRC are still coming from the standpoint that the split between card and cash takings is 50-50. In the days now of contactless card payments for small amounts under £30 this is having a great effect on the level of cash taken in the catering industry particularly takeaway. However it is the foot in the door that they require so it is imperative that you keep excellent records of your taking including all the set readings from the tills each day, order slips or other receipts given to customers. The declining cash takings is beginning to flush through to HM RC meaning there is always wobbling for negotiation now in settlements then there has been before so call Lindsey for help in any such investigation into the catering trade and be forewarned that’s excellent records is your best means of escape. If you have not yet been targeted for an enquiry by HM RC but believe you may have understated your cash takings or your car taking who will tell you how you can benefit from this in terms of a better tax deal and lower penalties
Commission Agents – do you fit HMRC’s Pattern!
Following on the heels of HMRC’s intensive sweeping of the U.K.’s dog and cat breeders, following its acquisition of details of commission received by them from Petplan Insurance, it appears that other such commission earning agents are coming under HMRC scrutiny.
Do you work on a purely commission basis?
National firms such as Plumbs and Hillary’s in-house specialists, who supply soft furnishings across the UK, use highly skilled agents to measure and fit their own products, paying them only commission on sales made.
HMRC have legal access through the payer to obtain details of the commissions paid and this is opening up cans of worms if the agent’s turnover does not match the commission HMRC believe has been paid.
But it doesn’t stop there. Many commission agents make and ancillary income in the form of extra fees for fitting products as well as expenses reimbursed for travel and subsistence. Some agents are allowed to work for multiple companies on a commission basis.
Even if all the income has been declared HMRC will take the opportunity to check what claims have been made in the profit and loss accounts of the agents, to ensure that they have not been over-claiming business or non-business expenditure. Many agents will be operating through a limited company and again HMRC like to check that this is compliant in all areas of taxation, including a director’s loan account and dividends.
If you are a commission agent and work for people like Plumbs then contact me for help in resolving or pre-empting any scrutiny by the tax authorities.Share