|
Small businesses
warned to keep taxman fully informed after firm threatened with £10k
VAT fine
THE Forum of Private
Business is warning entrepreneurs to fully update HM Revenue &
Customs about any changes to their businesses, no matter how small,
following a report that one firm is facing a £10k fine for not
informing inspectors it had changed its name.
The firm, which did not want to be identified but which has an
exemplary record of VAT payments and submitting tax returns on time,
was originally hit with a fine of over £30k under VAT notification
liabilities contained in the Finance Act 1985 and later the VAT Act
1994.
The fine was imposed after the business changed from a partnership
to a limited company; adding a 'ltd' to its name; without
informing HMRC, despite it retaining the same VAT number and
regardless of the fact the revenue did not lose out on tax payments.
The fine has been reduced to just over £10k after intervention from
accountants and the Forum's Tax Adviser Andrew Needham, of VAT
Specialists Ltd, but work is ongoing to further reduce the penalty.
"I am concerned that this is a change in HMRC's long-standing
policy of waiving its technical ability to impose this penalty fine
in such circumstances. If this is carried through and sets a precedent it could
result in huge fines being imposed on small businesses which, in
reality, have done very little wrong.
It is important that all small businesses are aware they could face
steep fines unless HMRC is kept fully updated; but this
heavy-handed approach is the very opposite of the support that is
desperately needed at this difficult time and HMRC risks further
alienating firms hit by its disproportionate, targeted business
records checks regime and widely-reported poor levels of service." said Mr Needham.
Mr Needham pointed to a House of Commons debate in July 1986, on the
legal clause to protect small traders making innocent mistakes from
recently-introduced fixed VAT penalties, a clause which was
subsequently included in the legislation.
None other than the future Prime Minister, Tony Blair, said:-
"Nobody is suggesting that there should not be compliance with VAT
regulations; of course there should be. The situations with which we
are dealing are those in which there has been an innocent
non-compliance. It should always be borne in mind that the power of
mitigation depends precisely on the VAT tribunal commissioners
thinking it right to exercise it. An injustice exists now and we
have been provided with an opportunity to remedy it.... If we really
care about small businesses and if what we are saying is not mere
rhetoric, but has a touch of reality about it, those who go through
the Lobby and vote for the new clause will be pinning their colours
to the mast of small businesses, while those who do not will forfeit
their right to be called the friends of small businesses."
The Forum has criticised HMRC's disproportionate treatment of small
businesses while large companies routinely get away with widespread
tax avoidance, and also its all-round poor levels of service.
As part of its headline 'Get Britain Trading' campaign the Forum has
extended its 'Business Buddy' small business
'work experience' scheme
to include tax inspectors, as well as politicians, in order to give HMRC officials insights into the challenges and opportunities facing
small businesses.
The Forum is urging all small business owners to contact its Public
Affairs team about their experiences of HMRC; including if they have
received fines they feel are unfair or disproportionate. They should
call:- 01565 626016 or
email. |
 |
Landlord left
tenants in danger A
landlord, whose electricity supply had been cut off, left
tenants in danger, a court was told. Mostofa Hamadani, of
Aigburth Road, was found guilty of 5 offences under the Housing Act
2004 and pleaded guilty to 2 other offences at Liverpool Magistrates
Court. He was fined a total of £4,250 and ordered to pay costs
of £3,220.
The court heard that in September 2011 Scottish Power contacted the
City Council's Environmental Health Houses in Multiple Occupation
team to tell them of a pending disconnection of a landlord's
electrical supply to a semi-detached house in Bentley Road Liverpool
8 which had 6 self-contained flats.
Later that month Scottish Power confirmed that the landlord's
electricity supply had been disconnected and although the landlord,
Mr Hamadani, had contacted them the arrears remained unpaid.
Shortly afterwards environmental health officers gained access to
the house and found that there was no electricity supply to the
common parts and the fire alarm and lighting were inoperative.
They found that the automatic fire alarm system was damaged and the
fuse had been removed. They also found that all the call points used
to raise the alarm had been damaged. There were no contact
information details for the manager of the property displayed in a
prominent position.
The entire staircase from the ground to the second floor was loose
with missing balusters.
The officers also found that there was an accumulation of domestic
waste including furniture to the side of the property and the soil
pipe to the front of the house was broken and there was evidence of
sewage leaking out.
Officers met Mr Hamadani at the house. They found that the
electricity supply still had not been reconnected so served him with
the Emergency Prohibition Order. He was advised of the reason the
council had taken this action was because of the real danger to the
tenants if there was a fire. He was told that if the property
remained occupied he could face prosecution.
Mr Hamadani made no attempt to speak to any of his tenants and after
approximately 15 minutes left. The officers remained at the property
to deal with any tenants giving advice about alternative
accommodation available to them.
Officers returned the following day and found that the property was
still occupied.
District Judge Sanderson gave Mr Hamadani credit for the 2 guilty
pleas but said that a number of matters, particularly the
disconnected electricity and the inoperative fire alarm, caused
concern as they left 4 vulnerable tenants without the protection of
a fire alarm.
Councillor Ann O'Byrne, cabinet member for housing, said:-
"Throughout this investigation Mr Hamadani has shown contempt for
the safety of his tenants. Although he was given every opportunity
to put things right he refused to co-operate with officers from the
Council and gave us no alternative, but to prosecute. The City
Council will not tolerate landlords who put their financial gain
over the safety and wellbeing of their tenants."
WITNESS APPEAL - ARMED BANK
ROBBERY - BIRKDALE
MERSEYSIDE Police Detectives investigating following an armed
robbery at a bank in Birkdale this on Thursday, 9 August 2012. Have
confirm on 12 August 2012, that a 41 year old man has been charged
in relation to this incident and appeared at South Sefton
Magistrates' Court on Monday, 13 August 2012. The armed robbery is
reported to have taken place at the bank on Liverpool Road,
Birkdale, shortly after 2.25pm. Police then attended after receiving
a report that a man had threatened a woman in the bank at knife
point. She was not injured during the incident, but was left very
shaken. As a result, Patrick Donahue, aged 41, of no fixed abode was
arrested on the evening of Friday, 10 August 2012 and subsequently
charged on Saturday, 11 August 2012, with robbery and possession of
a bladed weapon in public. DI Jon Smith said:- "We ask anyone
with any information in connection with the incident to call us.
These kind of robberies are not victimless crimes and the woman has
been left traumatised by the incident. Merseyside Police will not
tolerate incidents of this nature." Anyone with any
information is asked to call Sefton CID on:- 0151 777 3011, or
Crimestoppers, anonymously, on:- 0800 555 111. |
