More than half of those who could, and should, be preparing financially for later life are not saving enough and one in five is saving nothing at all, according to a report by Scottish Widows.

Of those aged over 30, not retired and earning more than £10,000 per year, just 45 per cent are making 'adequate' savings of at least 12 per cent of their income. This is down by one per cent since 2012.

Despite this, expectations for retirement income and the level of debt with which people enter old age are rising. The survey found that the level of annual income people would feel comfortable living on aged 70 has increased by £700 – to £25,200 – since 2012. However, it also revealed that a third of those already in retirement are still paying off average non-mortgage debts of £5,682.

Come and talk to our advisers to help plan for your retirement.

In other pension news, analysis by Prudential found that self-employed workers are missing out on employer pension contributions of £2,232 per year, based on the average UK salary of £26,664. Over the course of a 41 year average working life, this amounts to £91,512 that self-employed workers – who do not have the option of joining a company pension scheme – miss out on.

Retirement expert at Prudential, Stan Russell, said: "Self-employed workers have to be even more proactive when it comes to saving for retirement, as they can't benefit from employer contributions in a company pension scheme. Saving into a pension gives valuable tax relief, while professional financial advice can be helpful in ensuring that they're saving enough for a comfortable retirement."

Many businesses dread a visit from HMRC. There is always the worry that something may come out results in paying more tax but there is also an understandable sense of dread at the potential disruption it could cause in the run up to the visit, during the visit and even following the visit. However, there are a number of things you can do to make the experience far less stressful.

Preparation

Most HMRC visits are pre arranged either by telephone or letter.

If the appointment is made by telephone, ask the officer to confirm in writing the details of the visit – not only date and time but the expected length of the visit.

Ask for confirmation of who will be coming, what their roles are in the enquiry overall and exactly what records if any they want to see.

Ask at the outset are there any particular risk areas they have identified in selecting you for an inspection.

Have all of the requested records ready for the visit?

If they are to be left in a room make sure it is clean and only has the information requested in it. Of course it may not be possible to prepare in advance if HMRC don’t give warning of a visit.

Unannounced Visits

There are generally two types of unannounced visit and you should clearly establish at the outset what is happening. The first is generally where a routine inspection is being carried out but there has simply been a failure somewhere along the line to notify the trader. You may simply ask HMRC to come back another time when you will have the records ready and will also have time to let your accountant know of the visit.
The second is what is where HMRC deliberately does not forewarn the business but simply turns up. In this case there will be a formal notice signed either by a Tribunal or An Authorised Officer of HMRC. This notice is actually a request to enter the premises. IT DOES NOT GIVE HMRC AUTOMATIC RIGHTS OF ENTRY. There is no penalty for refusing entry for a notice signed by the Authorised Officer. There could be an initial penalty of £300 if the notice has been signed by a Tribunal but even then only if it is held that there was not a reasonable excuse for not permitting entry perhaps because the trader wanted his accountant to there perhaps? These visits are not random and our advice would be to seek professional advice before letting them in.
Be aware that the visiting Officers will initially ask the business owner. If he/she cannot be traced they can ask anyone who is in charge at the time. If no one is actually in charge at the moment they can simply enter the premises and leave the notice displayed in a prominent place. They need only be told “no once and they should not enter.

Know Your Rights

HMRC does not have any absolute right to meet the business owner. Both announced and unannounced visits are inspections not searches. They have the right to ask to see any business record which is reasonably required to check your tax affairs. If there is any uncertainty over whether an item is reasonably required HMRC should be challenged instantly rather than afterwards. Also, the extent of the inspection should have been made clear prior to the visit and this should not be extended without justification.
You do not even need to have the inspection at your business premises if it would be better/more convenient to have it at the accountant’s office. Their attendance at your premises must still be reasonably required in preference to elsewhere. HMRC must be courteous and polite to you at all times and explain what they need to see and why.

Be Nice

HMRC Officers are human beings and have the same right to courtesy as the rest of us. An Inspector that feels he has he has been mistreated will be far more inclined to dig his heels in to find something and also when negotiating penalties. Refreshments and warmth are expected.

Take Advice

If HMRC make any contact with you direct you should always let your accountant know who called and what they said. Let your accountant decide if they need to get involved. Always let your advisor know the outcome of the visit. It is good practice to ask HMRC to issue any follow up in writing.

If you are not currently protected against the professional costs incurred when you have a tax investigation or enquiry contact us to find out more about our Tax Investigation Service.