Latest news with #HMRC
Scottish Sun
2 hours ago
- Business
- Scottish Sun
Scots businesses caught ‘deliberately' tax dodging named and shamed
The lengthy list of offending UK firms includes convenience stores, internet sales businesses, wholesalers and takeaways north of the border PAY UP Scots businesses caught 'deliberately' tax dodging named and shamed Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) SCOTTISH firms caught owing hundreds of thousands of pounds after tax dodging have been named and shamed. HM Revenue and Customs has released a list of companies that have been caught out not paying their dues. Sign up for Scottish Sun newsletter Sign up 2 HMRC has penalised several Scottish-based companies deliberately tax defaulting Credit: PA 2 Day-to-Day Scotland Ltd was one of several firms caught dodging tax payments Credit: Google Maps The lengthy list of offending UK firms includes convenience stores, internet sales businesses, wholesalers and takeaways north of the border. The operator of Day-to-Day Scotland Ltd was caught swerving £131,759 worth of tax between January 1, 2020 and June 30, 2023. The firm, based at 47 Hope Street in Glasgow, was hit with a £79,055 penalty. Internet sales company SK and SA Limited dodged paying £139,184 in tax between February 1, 2015 and January 31, 2018. The business on Ness Street in Glasgow was fined £80,031.19 but HMRC. Mohammad Qasim Umar Nagora, who formerly traded as 7 Star Spices, dodged paying £97,195 in tax between April 6, 2013 and April 5, 2020. The takeaway firm, previously based on Mosspark Drive in Glasgow, was penalised £47,382. Kai Xin Street Limited, which operates as Kai Xin, was snared after evading paying a whopping £299,701 in tax between February 1, 2018 and January 31, 2022. The fast food business, based on King Street in Rutherglen, near Glasgow, was fined £177,568. In Edinburgh, capital gain operator Wai Man Lo was found to have failed to pay £290,450 in tax between April 6, 2018 and April 5, 2019. Five 50ps that could earn you thousands The firm, based on March Road in the capital, has been billed £215,281. Wholesaler Ellol Limited was caught swerving £63,902 in tax payments between August 30, 2022 and February 28, 2023. The company, based on Colinton Road in Glasgow, has been fined £44,731. Mohammed Zaheer Anwar, who previously traded as Lochend Fry, dodged £27,630 in tax between April 6, 2015 and April 5, 2021. The businessman, formerly based on Lochend Road South in Edinburgh, has been hit penalised £13,796. In Perth, Baran Melisa Limited, formerly trading as Marini's, failed to pay a staggering £797,177 in tax between June 1, 2012 and August 31, 2018. The takeaway and restaurant, previously based on St Catherine's Road, has been billed £691,132. If HMRC finds that a firm has deliberately evaded paying, tax evasion penalties can be imposed, amounting to 70 per cent of the tax owed. If businesses or individuals fail to pay tax, HMRC can take further enforcement, including prosecution and seizure of possessions. In rare cases, offenders have been sent to prison for tax evasion. Kevin Hubbard, HMRC's director of individuals and small business compliance, said: "The overwhelming majority pay the tax they owe, but for those who refuse, we use a range of tools to take firm action. 'This includes publishing the names of those penalised for deliberate defaults to influence taxpayer behaviour and encourage defaulters to engage with HMRC." HMRC's full list of deliberate tax defaulters can be viewed here.
Telegraph
3 hours ago
- Business
- Telegraph
Inheritance tax is heinous, but avoiding it could be a bigger disaster
They say nothing in life is certain but death and taxes, but I propose to add a third to the list: investors doing everything imaginable to avoid taxes. The bigger the bite HMRC wants, the heavier the hustle to shield hard-earned assets. Thanks to Labour dragging pensions into the inheritance tax net, it is now a stampede. Yet the avoidance path conceals huge pits I've watched investors fall into throughout my 50 years managing money. Estate planning is wonderful, but too often, sensible planning leads to tax considerations dictating investment decisions. This raises risk, reduces returns and can hit your planned inheritance much harder than any tax rise. Consider popular ways people now seek to shield pensions from inheritance tax: investing in Aim shares is one, with the double benefit of stamp duty exemption and business property relief. Enterprise Investing Schemes (EIS) are another, and business property relief schemes letting you access unlisted companies is a third. All these sprang from past governments' investment incentives, hoping to spur entrepreneurship and startups. A fine aim. But pursuing a strategy aimed at these incentives solely for tax benefits aren't the sunlit uplands some promise. You don't need me to tell you Aim has a long history of scandals and failures alongside those select success stories that graduated to the main market. Or that its stocks are Britain's tiniest, with a median market capitalisation of £15m. Or that FTSE's Aim All Share is down nearly -30pc since 2000, while the FTSE All Share has soared over 275pc. Astronomical missed returns are a dear price to pay for tax relief, particularly one whose relief is rapidly diminishing – Aim stocks' BPR relief drops from 100pc to 50pc next year. EIS and BPR schemes carry another risk: overloading on unlisted companies. These sport the veneer of stability and, in EIS's case, supposedly high growth potential. They are billed as a way for normal folks to invest in venture capital and reap big rewards when a startup hits it big, but the reality is those are needles in a haystack of hard-to-value, illiquid investments. Winners aren't guaranteed – untraded doesn't mean stable. It just means fewer pricing points, hiding the inherent behind-the-scenes volatility. That is illiquidity – a bug, not a feature. You risk being unable to sell when you really need to without suffering a steep discount. Aim companies aren't categorically horrid. Some are fine, even great. EIS and BPR can also be fine tools, in certain situations. But it all depends on your broader goals and time horizon, which gets us to the root of the problem. Your fixation on tax steers you away from why you invested in the first place. Done right, long-term investing is about picking the correct asset allocation – the blend of stocks, bonds and other securities – for reaching your goals over your investment time horizon. Your goals are the primary purpose for your money, usually growth, cash flow or some combination of the two. Your time horizon is how long your money must last, usually your lifetime – clearly longer if inheritance tax is a concern. Throughout history, stocks and bonds have done a marvellous job of delivering the growth and cash flow people need, given a sufficiently long-term horizon and reasonable withdrawals. Stocks deliver abundant long-term growth, despite bear markets and volatility along the way, while bonds cushion expected short-term volatility and support cash flow with interest. British and global listed stocks and bonds are liquid – easy to sell in a pinch to cover expenses both expected and sudden. When tax avoidance takes supremacy, will you let it steer you from whichever liquid asset allocation aligned with your goals and needs? If your pension is loaded with Aim shares, EIS or BPR schemes to reduce inheritance tax, it risks not delivering the returns needed to support your cash flow later on. Aged poverty is a real pain. Or maybe your pension ends up worth vastly less for your heirs, after tax, than if you had opted for a simple blend of stocks and bonds. If you have a sudden expense, your pension may not be liquid enough to cover it. Then what do you do? Borrow? Don't forget, tax policy is a whack-a-mole game. Pensions were exempt from inheritance tax until they weren't. After halving Aim relief in 2024's Budget, Labour capped BPR last year. Some ministers floated scrapping Aim relief altogether. What then? If you focus on tax optimisation, you may find yourself needing to make big changes again. And again. And again. Changes cost money. Taxes are certain in general, but the specifics are shape-shifting. When your goals and time horizon determine your strategy, there are fewer moving parts. You can build a diversified strategy with a long history of delivering what you need, while taking sensible steps to reduce tax exposure where available. Tax avoidance is nice. Liquidity, predictability and reaching your goals? Nicer.
The Independent
3 hours ago
- The Independent
Major warning issued over car park QR code scams amid rise in ‘quishing'
Criminals are using fraudulent QR codes in car parks to steal personal and financial information, Action Fraud has warned. Almost £3.5 million has been lost due to QR code scams with more than 780 reports of 'quishing' made to the UK's national reporting centre for fraud and cybercrime between April 2024 and April 2025. Also known as QR code phishing, 'quishing' is a type of cyberattack where QR codes are used to trick individuals into visiting fraudulent websites or downloading malware. Fraudulent QR codes are most frequently used in car parks, with criminals using stickers to tamper with the scan codes already in place on parking machines. The scam is also used on online shopping platforms, where sellers received a QR code via email to either verify accounts or to receive payment for sold items. Some phishing attacks impersonate HMRC, or other UK government schemes, targeting people with QR codes designed to steal personal and financial details, reports show. People are being asked to stay vigilant and double-check QR codes to see if they are malicious, or have been tampered with, before scanning them online or in public spaces. Claire Webb, Acting Director of Action Fraud, said: 'QR codes are becoming increasingly common in everyday life, whether it's scanning one to pay for parking, or receiving an email asking to verify an online account. However, reporting shows cyber criminals are increasingly using quishing as a way to trick the public out of their personal and financial information. 'We're urging people to stop and check before scanning QR codes, to avoid becoming a victim of quishing. Look out for QR codes that may have been tampered with in open spaces, or emails and texts that might include rogue codes. If you're in doubt, contact the organisation directly.' Although QR codes used in pubs and restaurants are usually safe to scan, ones in open spaces like train stations or car parks, might pose a greater risk. Action Fraud suggests checking for signs that codes may have been tampered with, such as a sticker placed over a legitimate QR code. If you are unsure, it's best to not scan the QR code at all and instead find the official website or app of the organisation you are trying to make the payment to. If you receive an email with a QR code in it, and you're asked to scan it, you should be cautious due to an increase in these types of 'quishing' attacks. Another precaution to take is to always use the QR scanner that comes with your phone, rather than using an app downloaded from an app store, because it is more secure.
Glasgow Times
3 hours ago
- Automotive
- Glasgow Times
Pensioners' HMRC tax codes to change for Winter Fuel Payment
Following the announcement that pensioners who receive under £35,000 a year will now receive winter fuel allowance, HMRC has confirmed it will take back the money from those with incomes above £35,000 through their tax codes, or by asking them to complete a self-assessment tax return. HMRC said: "Winter Fuel Payments will be paid automatically without a claim, and any charges will be collected via PAYE, or via self-assessment for those with other income to declare." What is a tax code? It may look like a secret code, but the formula is pretty simple (and explained below). The most common HMRC tax code is 1257L, which is based on the Personal Tax Allowance of £12,570 - this is the amount you can earn before you need to pay tax. But, many people are paying too much tax - as we go into the HMRC tax year 2025 - 2026 it's worth making sure you aren't one of them - and if so, look at how to get a rebate. Your tax code is used by your employer or pension provider to work out how much Income Tax to take from your pay or pension. HM Revenue and Customs (HMRC) will tell them which code to use. How to check your tax code You can find your tax code: by checking your tax code for the current year online - you'll need to sign in to or create an online account on on the HMRC app on your payslip on a 'Tax Code Notice' letter from HMRC, if you get one This week's 'Joker' #martinlewis break bumper: If you have a 1250L tax code - what does the number bit stand for? a) Just an ID code b) You can earn 10x that number tax free each year c) It's your additional allowance on top of the standard allowance — Martin Lewis (@MartinSLewis) February 17, 2020 If you check your tax code online or in the HMRC app, you can also: find your tax code for previous tax years sign up for paperless notifications - this means HMRC will email you when your tax code changes Check what your tax code means You can use the HMRC tax code checker to find out: what the numbers and letters in your tax code mean how much tax you will pay what you may need to do next What the numbers mean in your HMRC tax code The numbers in your tax code tell your employer or pension provider how much tax-free income you get in that tax year. HMRC works out your individual number based on your Personal Allowance and income you have not paid tax on (such as untaxed interest or part-time earnings). They also consider the value of any perks you get from your employer (such as a company car). HMRC tax code letters and what they mean The full list can be found on the website, but these are the most common, and what they mean: L - For an employee entitled to the standard tax-free Personal Allowance S - For an employee whose main home is in Scotland BR/ SBR - For a second job or pension M - For an employee whose spouse or civil partner has transferred some of their Personal Allowance (through Marriage Allowance) N - For an employee who has transferred some of their Personal Allowance to their spouse or civil partner (through Marriage Allowance) T - When HMRC needs to review some items with the employee Recommended reading: How to claim back tax with an HMRC tax rebate If you think you are on the wrong tax code, you can contact HMRC on 0300 200 330 or speak to an advisor online via their live chat service. HMRC will contact your employer to correct your tax code and you will get any money you overpaid in tax in your next payslip. You can also claim back up to four additional years if you have been overpaying for some time.
Daily Mirror
4 hours ago
- Business
- Daily Mirror
Child Benefit change coming this summer for thousands of families
You normally pay the High Income Child Benefit Charge through self-assessment - but there will soon be the option to do this through your PAYE tax code instead The way higher income families pay back part of their Child Benefit is changing this summer. Child Benefit is worth £26.05 a week for your first child, then £17.25 for any additional child. It is a payment that is given to someone who is responsible for bringing up a child - but if you earn over a certain amount, you have to pay back part of your Child Benefit. If you, or your partner, earn over £60,000, you have to pay back 1% of your Child Benefit for every £200 you earn over £60,000. Once you earn over £80,000, you pay all your Child Benefit back. This is known as the High Income Child Benefit Charge. You normally pay the High Income Child Benefit Charge through self-assessment - but there will soon be the option to do this through your PAYE tax code instead. HMRC will contact families when a new digital system goes live, which is expected to happen this summer. You will still be able to pay the High Income Child Benefit Charge through self-assessment if you want to. In the 2022/23 tax year, 440,000 individuals paid a total of £525million in High Income Child Benefit Charge. Crucially, the figures above count per person - so if you are in a couple, you could both earn £59,000 and not be subject to the charge. You can make a claim for Child Benefit without getting the payments, in order to get National Insurance credits which count toward your state pension, if you don't want to pay the charge. The High Income Child Benefit Charge was previously £50,000 a year before you start to pay it back, but this was raised to £60,000 for the current tax year. Child Benefit is claimed by more than seven million families. You can claim Child Benefit if you're responsible for a child under the age of 16, or if they are under the age of 20 and still in approved education or training. This can include A-Levels, NVQs or even home education, but it does not include university or BTEC qualifications. The child normally has to live with you, or you pay at least the same amount as Child Benefit toward looking after them. You can claim Child Benefit if you fostered a child, as long as the local council is not paying anything towards their accommodation or maintenance, if you adopted your child. You may also be entitled if you're looking after a child for a friend or relative. There is no limit for how many children you can claim Child Benefit for, but if two people look after a child, only one person can claim Child Benefit. Child Benefit is paid every four weeks by HMRC on a Monday or Tuesday.
