Crystal Umbrella

HMRC have issued a reminder to everyone who is required to complete and submit a self assessment tax return for 2008-09 that the deadline for online submissions is the end of January. Anyone who fails to meet this deadline will be faced with a penalty.

The deadline for paper returns was 31^st October so this has now long passed. This means that returns may now only be submitted online. The penalty for submitting a paper or online return late is £100.

If you are planning to submit your tax return online before the end of the month, you will need to register for the Self Assessment Online service on the HMRC website. It is worth noting that on registration you will be sent an activation code by post  which can take up to seven days to arrive so you should register as soon as possible to ensure that you can proceed on time.

By filing online, you will have your tax will be calculated automatically. This means that your return is processed quicker. Of course, this means that if you are due money that it should also be paid back to you quicker. Please note that you will receive an online acknowledgement once you have submitted your return and you should keep this for your records.

Sarah Walker from HM Revenue and Customs commented: “If you haven’t sent in your 2008-09 tax return, you need to start thinking about it now. And if you haven’t filed online before, allow plenty of time to complete the registration process – that way, you’ll avoid a last-minute rush at the end of the month.”

Those holding offshore accounts had until 5pm yesterday to inform HMRC that they were planning to disclose money or assets held offshore. Those failing to tell HMRC that they were planning to disclose will be investigated and face penalties of 100% of the tax owed.

A spokesperson for HMRC stated yesterday: “We have received a lot of last minute calls.”

He added: “We received lots of letters today.”

It will not be known for several days how many people have taken advantage of this disclosure opportunity but those who have contacted HMRC now have two options to make full disclosure – by 31st January on paper or by 12^th March online. They will then be liable for any unpaid tax the past twenty years plus interest and a ten per cent penalty.

The HMRC spokesperson declared: “They will have to pay the lot – all at once.”

However, Ronnie Ludwig of Saffery Champness accountants said that not everyone disclosing offshore assets will have tax to pay, commenting: “The Revenue has given the impression that merely holding an asset off shore, like a home abroad, needs to be disclosed even though it may not have generated any taxable income or capital gain.”

It is not an offence to hold assets offshore but those who receive an income from investments or savings held abroad must declare this on their tax return.

People who are found to be dodging tax liability will now face tougher penalties as the chancellor declared in his pre-Budget report that the maximum fines for evading tax offshore are to be doubled. This 200 per cent penalty will be effected next year.

As the latest Recruitment and Employment Confederation (REC) Jobs Outlook results are released, the organisation has praised contractors and freelance workers, stating that they provide “crucial services” to cover seasonal demand.

Chief executive of REC, Kevin Green stated: “Whilst many of us have downed tools, thousand of key workers and recruitment professionals are hard at work. Temporary, contract and locum staff as well as interim managers provide crucial front line services and keep Britain working over Christmas. At the same time, recruitment professionals play a pivotal role in responding quickly and efficiently to the demand for often highly-skilled staff in sectors such as healthcare, transport, care, logistics and technology.”

The December Jobs Outlook showed that 22% of employers believe that business is improving. This is a staggering 21% increase since September.

Roger Tweedy, REC’s director of research said: “”At last there is evidence that life is returning to the UK’s labour market. After several months of uncertainty it seems that firms are becoming more confident about their future hiring intentions. Although if previous recessions are anything to go by we would expect unemployment to continue to rise even after the economy returns to growth, this report shows positive signs that unemployment will not be as high as people at the beginning of the year predicted.”

He concluded: “Whilst the labour market is still very fragile, the feedback from recruiters on the frontline of the labour market suggests that it is becoming easier to place jobseekers into work. As the labour market becomes more fluid once more this in turn will create more vacancies”.