Beware Of HMRC Fake Emails

Internet users all over the world are facing cyber scams that can be potential enough to make them bankrupt. This threat often comes as a link in the email inbox, or a text message that asks you to open a link to get a particular benefit. Most of these links come camouflaged as a part and parcel of the HM Revenue and Customs department.

Most of the times, the people get emails that deal with the following issues:

  • Tax Rebate Or Penalty: This is one aspect that you need to be careful of. You may be a defaulter in tax payment, and think that the tax department authorities have sent you the mail. In reality, the HMRC never sends theses sort of mails to the people. These are actually phishing links that are used to get hold of your email account and other accounts thereafter. So, if you happen o get such emails, you should never reply back. The third party fraudsters are adept in tracking your email id and hacking it, so you need to be extremely careful. If you have already paid the tax, you will definitely realize that this is a fraud. However, if you have not paid the tax, you may consider it as a reminder. But this can land you in trouble. The best option is to ignore the mail or simply delete it.

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  • Rebates: One fine day, you may feel happy to receive a mail that offers you a rebate or discount on the taxes. However, you need to keep in mind that the authorities never offer discounts through emails. You just need to report the mail and prevent the user to send you additional mails in the long run.
  • Personal Information: Sometimes people find emails in their inboxes that ask or personal information. These may include confidential information related to bank account number, card number and so on. You must be careful not to disclose the information at any cost. These emails are used by scammers in order to know your personal information and ten use this information for other malicious purposes.

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Apart from these, the scammers can also ask for visa information. When you disclose the same, they use it to create fake documents that bear your name and number. At the end of the day, you will end up landing up in a fraud circle and face legal hassles.

There may also be emails related to money transfer and online payment. You just have to keep in mind that HMRC does not send any mail to the people who ask for personal information or payments. At the end of the day, it is your responsibility to stay safe. There are some specific numbers to call if you receive these mails. You need to inform the legal authorities about the emails when you receive them. In case you face any trouble in the long run related to this issue, you will remain on the safe side.  So, be careful when you receive these emails.

Are You Next On HMRC’s Tax Hit List?

There has been a popular campaign called ‘Grab of Cash’ recently, and HMRC has been concerned with business online. They have paid attention to the trade that is going on online. The trick of the online business is that they cannot be tracked by individuals if they do not have specific information about the websites. However, technologies are becoming smarter and the authorities are planning to crack down upon the online traders with the help of technology. Yes, innovators are always on the hunt of technologies and the latest innovations that are yet to come are web robots. These will be used to track down different business that are taking palace online and the people associated with these businesses. It is really a state of the art programme, and will come immensely beneficial once they are introduced.

What Does It Include?

Online trade includes any transaction related to money from where you are reaping credentials. You may buy a product from a particular site and sell it elsewhere. You may also involve in other trades including making money from online games and gambling. These also include online purchase of goods and services.

In a nutshell, the process involves any sort of online transaction. In case you are a part of this online trade and have not yet informed the tax department, it is time that you do inform. As a part of the tax, you will have to pay a part of the money that you are making online. Any income is taxable; it does not matter whether you make it online or not. There are a number of people who are making good money from online trade, but do not disclose the income to the tax department.

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Regardless of the nature of the trade, one needs to pay taxes on the taxable income. Cyber trade is a new inclusion and has caught up fast among entrepreneurs. The tax department has been working to track these trades for quite some time.

Specific Results:

Unlike the traditional manual mode of catching hold of the defaulters, the online robots are expected to be much smarter and will provide specific information about the defaulters. In most of the manual cases, the culprits hide behind the internet and cyber investigators find it difficult to get hold of them. The upcoming process is a far more practical way to get hold of the defaulters. Apart from increasing the revenue of the country, the process will prevent people from hiding the business that they do online. Most of the people think that there is no way for the tax collectors to know about their business. But in near future, the reality is going to be harsh for them. If you are in the list of defaulters, you need to disclose the income before your are caught.

The robots will generate specific results about the trades and the particular individuals who are involved with such trades. So, there will be no need of manual manhunt when the new technology comes to play.

The Concept Of Tax Compliance

Tax compliance in simple terms is the degree to which the tax payers comply with the tax law in the country.  The country will face a ‘tax gap’ when there is difference noticed in between the actual revenue and the revenue that will be collected, in case of compliance of 100%.

Purpose Of Taxation:

The government of the country use taxation to finance the expenses to manage the economy and several other purposes are to reduce pollution, to discourage unhealthy lifestyle among the people, goods imports and exports, to maintain equality between wealth and income, reduce inflation and to improve the balance of payments.

Benefits Of Taxation:

Social Benefits Of Tax Compliance Includes: Protection of the vulnerable, Relief of poverty, Education, Economic equality, Gender equality, Economic security, access to essential services, Community and Social Solidarity and Environmental Sustainability.

Economic Benefits Include : Equity versus Efficiency, High Standard of Material Living, High Rates of Economic Growth, High Rates of Productivity Growth, Price Stability, Sustainable Debt Levels, Viable International Balance of Payments, High Rates of Savings and Investment, Research and Development, Utilization of Information Technology, Competitive Economy and innovation.

Why Is Tax Compliance So Important?

It is essential for a trader to ensure that the tax affairs comply with the rules and regulations of the country, failing to which one will be subjected to heavy fines and even imprisonment. HMRC will allow the trader to assess and avoid the risks by advising about the tax legislation in the country in terms of tax planning and sustainability in the market.

Domains Of Compliance:

The tax payer essentially should have the knowledge about the four important domains of taxation. The domains which will avoid the trader to fall into non- compliance starts with the registration in the system; timely filing or lodgement of requisite taxation information;  providing proper information to maintain the bookkeeping system and also to pay the taxation at proper time.

Identify The Continuum Of Risk:

The traders, in order to continue to be compliance on the taxation process should have a keen focus on the aspects to improve their pace in the advancing market of business. The later must have a good team of manpower with the updated knowledge on the product requirement, appropriate technology to meet the demand of the costumer and most importantly focus on the risk factors driving towards the non- compliance.

Compliance Assessment- HRMC:

The HRMC will have a regular compliance check of the trader and continuously provide a firm tax advice and resolve the people’s problems with extensive experts in dealing with all forms of tax investigations and tax disputes. The HMRC take control and manage the process to minimize the interruptions that cause disclosure of tax evasion to the company. To find out how exactly the compliance is done; connect to the HMRC contact number which maintains confidentiality of the discussion made by the customer.

The trader can forecast the future of the requirements of tax compliance by dealing through the proper channel in the market of trade.