Revenue in business registration drive
Paymaster general Dawn Primarolo has launched a campaign to encourage new businesses to register promptly with the Inland Revenue.
Paymaster general Dawn Primarolo has launched a campaign to encourage new businesses to register promptly with the Inland Revenue.
The Revenue has claimed that early registration will assist start-ups from the outset and avoid them drifting into the hidden economy.
To aid this initiative, the existing registration form has been shortened and been made more straightforward to complete, and a telephone helpline has been set up to take registrations over the telephone.
In addition, businesses contacting the Revenue to register will be issued with a copy of Starting up in Business, a guide covering all essential tax issues including National Insurance and tax credits.
To encourage entrepreneurs, a new leaflet P/SE/1 Thinking of working for yourself? will explain how to register and receive a free video, showing what is involved in starting-up a new business.
Commenting on the campaign Primarolo said: ‘The Government is committed to helping small business to start up and grow and help them understand and meet their obligations.
‘But we are not prepared to allow honest businesses to be undercut by those in the hidden economy who are determined not to pay their dues, so we are also introducing a penalty for those who fail to notify the Inland Revenue about their new businesses. Our intention is fairness for all.’
Under newly introduced Revenue regulations, the newly self-employed will have 3 months to register – or face a penalty of £100.
These measures followed recommendations from the Lord Grabiner’s report on the informal economy.
They included an effective requirement to notify the Inland Revenue on or soon after the start of business, and that more and better help should be offered to new businesses in understanding their responsibilities.
The registration for Class 2 National Insurance contributions (NICs) will also be treated as notification for tax and Class 4 NICs purposes – so that the newly self employed will only need to notify the Inland Revenue once.
The P/SE/1 leaflet is available from the Helpline for the newly self-employed, Inland Revenue Enquiry Centres, Jobcentres, Business Links, and other appropriate locations and on the Inland Revenue’s website.
Links
Revenue admits tax statements errors