Tax has just got more taxing, accountants warn
NOT taking care over business tax returns could result in a hefty fine, Cleackheaton accountants Clough & Company is warning.
As of April 1, a new tax penalty regime is being phased in covering corporation tax, income tax, PAYE, National Insurancs contributions, the Construction Industry Scheme and VAT.
Important changes to the legislation include penalties being extended to directors, company secretaries, or any other person managing the company’s affairs.
Where the penalty for a deliberate inaccuracy is attributable to an officer of the company, both the officer and the company are liable for a penalty. Furthermore HM Revenue & Customs (HMRC) can now apportion all or part of the penalty against that particular officer.
However, the changes have been criticised by accountants who claim that tax forms are already too complex.
Nigel Westman, a partner at Clough & Company, said: “It is no surprise that every year we are inundated with enquiries about self assessment forms confirming that these have become too complex and daunting for many people in the region most of whom find them confusing.
“Under the new tax penalty regime businesses need to demonstrate that they have taken reasonable care when filling out the return and must have adequate business systems in place which enable transactions to be correctly captured and processed into accounts and Tax Returns.”
He added: “This is why we are actively encouraging people in business to come forward and discuss what the legislation requires in their particular circumstances.”
