HM Revenue and Customs (HMRC) is advising UK taxpayers to be vigilant against spam and other fraud emails. According to a recent accounting news article in Accountancy Age, the financial new organisation started by UK politician Michael Heseltine, in Summer 2010 HMRC managed to close down nearly 200 fraud sites in response to increasing volumes of spoof phishing emails. .
Incredibly HMRC are reputedly asking for consumers who receive dodgy emails to check the official HMRC site to verify it is a spoof. Almost all internet users know that they should not “click on links’ contained in suspicious emails, or open attachments”. However it is worth repeating because fraudsters are constantly changing their tactics to avoid spam filters and increase the bogus and fake authenticity of their correspondence. The volume and sophistication of the spoof emails means that even experienced web users can caught napping. Hackers go to any lengths since the information they get is so valuable if they succeed.,
Internet Security experts advise that scams concerning tax rebates, child benefit or personal finance work best. Any offer of reclaiming free money and the offer of so called facilities to reclaim some cash, on the back of a bogus recognised brand name with ‘intrinsic trust value such as PayPal, A UK High Street Bank or a UK Government organisation such as HMRC, makes it a powerful cocktail with which to intoxicate vulnerable consumers. The potentially highly sensitive personal information can then be sold on or misused for malicious means.
There is also a risk of losing money personally from these spoof phishing activities and fraudulent scams. UK banks and financial institutions have a responsibility to maintain and constantly improve security to counteract hacking and any unauthorised access to liquid funds online.”
HMRC have observed fraudsters using direct marketing techniques via cal centres to target UK taxpayers to obtain invaluable personal and financial information.
A classic fraud involves consumers receiving a phone call informing them of a tax rebate. First they require verification, and request bank card details as the preferred method. If successful, attempts are made to withdraw money from the account, using the details provided. If you are in the unfortunate position of having had this happen to you, you are advised to report the matter immediately to your bank and they are likely to be able to put a stop on your account before the fraudsters succeed in make a demand for money. Time is most certainly of the essence.
HMRC claim that they only ever contact consumers regarding a tax refund in writing by post. and advise any consumer receiving a bogus phone call not to provide any information to the fraudster, and to report it to the police and HMRC as soon as possible.”
It isn’t just personal taxpayers who are at risk. Small and Medium sized UK enterprises have also been widely targeted and they are advised to contact their company accountants if they have any concerns.
UK Golfer Paul Casey has revealed that participants in this years Ryder Cup competition may be forced to pay tax on incomes.
The issue was revealed after Casey was given advice by his UK accountant on returning to the UK from his new home in Arizona.
Players will be unhappy with this ‘tax’ as they do not actually get paid for competing in the cup which is played in Britain and the US on alternating years. The tax will be taken from any other monies earned such as sponsorship or prize winnings.
The European team is understood to still be in discussion with HMRC about the issue arguing that they should receive the same benefits as athletes in the London Olympics in 2012.
Olympic Champion Usain Bolt was also involved in a dispute with HMRC recently over an event he was due to be competing in in Crystal Palace. The Taxman again wanted to take a cut out of any winnings the 100m World Record Holder won.
An exemption has also been put in place for next years Champions League final which will be held at Wembley. A common thread through these problems suggests that the taxman is willing to make exceptions when it comes to team sports stars but not individual athletes.
A change proposed by HMRC will soon allow users to see real-time information on employees but the scheme has already been met with criticism.
Tax Directors have said for the project to be even remotely useful or usable it will need sufficient funding and a sustained pilot program.
Baker Tilly have warned that there is a “long way to go” before software can be implemented at any stage.
Examples of previous projects such as the merger of the National Insurance and PAYE system have been highlighted as examples to learn from.
The system which will give an employee a single computerised tax account which brings together employment and NI records, giving HMRC the real time information of all payments made.
The proposal also states that it would do away with employees having to obtain the correct tax codes through filling in forms, in turn making the process a lot easier.
The software behind this proposal has already been invested in and test account created, but as previous projects have shown it will need piloting thoroughly before being released to the public.
If you need help with your PAYE accounts for employees take a look at BusinessServiceFinder who will search experts local to you, saving you time and money.
American computer manufacturer Dell has today announced that it is getting closer to finalising investigation into accounting irregularities and the conduct of CEO Michael Dell.
It has agreed to set aside $100 million (£65.5 million) to cover the costs that racked up after employees mislead auditors and manipulated results to meet performance targets.
After an internal investigation Dell found that its sales had been ‘overestimated’ by $359 million (£235 million) and its income by $92 million (£60 million) and now regulators have backed up this figure by saying that any settlement would include charges of fraud and negligence. Dell now appears to have reached a settlement agreement with the Securities and Exchange Commission (SEC)
Michael Dell, founder and CEO of Dell Computers also faces the same charges, but the company have said any investigation will result in a fine not in Dell being kicked off the board.
Dell was due to hold its annual shareholders’ meeting last week but it has suspended the event until 12th August to give share holders time to think about and consider the proposed settlements.
This is not the first time Dell have been left lacking in accountancy management, just last year a deal was struck to pay $40 million (£26 million) over ‘accounting issues’ this deal is still waiting for approval from the courts before it can be deemed completed.
One of the UK’s biggest employments agencies has announced that the finance sector is again number one, with employment figures rising for the third successive quarter in 2010. However the conomic outlook remains tough and any employment agencies wishing to expand are strongly advise to seeking external business advice.
The agency behind the report, Manpower has again confirmed that the industry will see a 7% growth in employment over the next 3 months and accountancy in particular is looking at a growth of around 5%.
The current national average for growth is only around 1% so anything more is seen as an obvious success and unemployment as a whole has risen 0.1% as of June 2010 taking the UK’s unemployment rate up to 7.9%.
Another announcement which will help boost employment figures in the UK is that of the European Union forcing banks to sell of portions of its wealth, giving new players the chance to enter the finance sector with Scotland in particular looking at a host of new banking options,
Finance Secretary John Swinney said:
“I think we are going to have more banks and more players in the marketplace as a consequence of the divestment activities directed by the European Commission..”
Adding:
“I think that is a good thing. That will mean greater competitive propositions are available in the market.”
Lloyds for example are looking at selling off the TSB branch they they inherited from Bank Of Scotland opening up a whole new venture within finance as we know it.
UK Accountants Hope For Balanced Emergency Budget.
Paul Grant, for Accountancy Age took the trouble, the the run up to the Government’s emergency budget in June 2010 action, to survey Accountancy firms that specialise in mid size and small businesses. Accountants seem concerned that any budget avoids fiscal actions that may adversely affect the UK’s delicate economic recovery.
Accountants appreciate the value of VAT and Capital Gains (CGT) Tax rises to address the unsustainable Government debts, which the previous administration seem hell bent on maintaining was a credible stance.
Local Small Accountancy Firms in the UK hope the UK Government will seek to balance any tax rises with the following measures:
- Abolition of employer’s national insurance to encourage employment.
- Corporate tax cuts – reducing small company rate
- Revise IR35 legislation which is cumbersome
- Simplify accounting and tax legislation
- Higher-rate relief for pension contributions.
- New VAT rate no more than 20% to avoid definitive double dip recession
What is the likelihood of a double dip recession? According to Reuters Global Economy News a Double-Dip recession cannot be ruled out. Europe’s debt crisis could make investors lose faith in efforts in Europe and elsewhere to tackle rising debt levels. The World Bank’s Global Economic Prospects 2010 report said slower growth in developed economies would deprive developing countries of healthy markets for their goods and would cut into investment. The World Bank Financial Crisis points to other highly-indebted countries, like Spain and Portugal, who are not too dissimilar financial crisis as Greece.
The World Bank is encouraging the major industrialized countries to take advantage of any business opportunities offered by stronger growth in developing countries to boost economic activity globally .
The World Bank has reportedly forecasted developing economies to grow by between 5.7 percent and 6.2 percent each year from 2010 to 2012, which is twice the growth rate of advanced economies and much greater than previous years (e.g. 2009) which was under 2 percent.
Accounting practice and accountancy firms in the United Kingdom are a global leaders in terms of quality standards, techniques and modern accounting productivity.
latest news of the Institute of Chartered Accountants in England & Wales (ICAEW) – the defining professional body for the UK Accounting sector in England and Wales, one of the largest in Europe, with approximately active 125,000 members, and a global leader in quality standards.
The Institute of Chartered Accountants of Scotland and its TV News Channel (ICAS) – professional body for Chartered Accountants in Scotland, with the canny Scots setting the benchmarks for accounting and business excellence.
UK section of Association of Chartered Certified Accountants (ACCA) – a global network of professional chartered accountants for small businesses.
The British Accounting Association (BAA) – Managed by Sheffield University UK based organisation bringing together those interested in teaching and research in accounting and finance.
Association of Accounting Technicians – Professional membership organisation delivering training and accounting technician CPD, and approved by CIPFA, ICAEW, CIMA and ICAS.
Chartered Institute of Management Accountants (CIMA) – represents Accountants in Business such as financial managers and accountants who work in industry, commerce, not-for-profit and public sector organisations.
For auditors today and UK regulatory industry in the audit sector please refer to my article on UK Auditing bodies.
For details of the UK Specialist Accounting Associations and accounting specialist bodies see my article listing the more well known accounting professional associations.
