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HMRC needs to do more to help those who struggle to deal with their tax and benefits affairs online, says Robin Willamson of the Low Incomes Tax Reform Group. On Tuesday 8 May the Low Incomes Tax Reform Group published a report on digital exclusion. It is based on the findings of a survey involving 758 clients of three advice charities – TaxHelp for Older People, TaxAid, and Migrant Resource Centre. As government increasingly gives priority to online channels over more traditional ... Continue Reading

HMRC have introduced extra support for people contacting them about PAYE and self-assessment liabilities following a bereavement, and have revised form R27 (used to finalise a deceased person’s tax affairs).  Background To encourage better co-operation between HMRC officials, tax professionals and tax charities, a joint working group known as the ‘Clasper Group’ or ‘Clasper Initiative’ was set up in late 2011. This followed a report by the House of Commons ... Continue Reading

Just a quick reminder that, further to our earlier news item - Reminder - Electricians Have 'til 15 May to use Tax Safe Plan- the deadline for notifying HM Revenue & Customs under the terms of its latest "amnesty" focusing on the Home Improvement / building trade, is today. Based on previous similar arrangements, HMRC may still accept notification (albeit with no guarantee of exactly the same terms) after today. The notification deadline for HMRC's next campaign - e-marketplaces - is 14 ... Continue Reading

TWebEd says that HM Revenue & Customs could have done much better - for taxpayers - with its new IR35 Guidance. Introduction Last week, HM Revenue & Customs (HMRC) published its new IR35 guidance - see Intermediaries Legislation (IR35). It was eagerly anticipated but I couldn't help feeling quite deflated after having read it - and I did read through it. And in the few days since, my disappointment has soured further. What this Guidance Does - Apparently Let's start with ... Continue Reading

Peter Vaines of Squire Sanders comments on a recent case in favour of the taxpayer which appears to contradict an earlier hearing. The Tribunal recently considered an interesting feature of agricultural relief for Inheritance Tax purposes and concluded that the prevailing HMRC practice was wrong. Hanson v HMRC TC1791. Agricultural relief is given in respect of agricultural property which is defined by IHTA 1984 s 115 as being agricultural land and any building which is occupied with ... Continue Reading

The Low Incomes Tax Reform Group (LITRG) has published a report on "Digital Exclusion" and the impact of the government's "digital by default" policies on taxpayers, Tax Credits claimants and National Insurance contributors who were digitally excluded. The study which formed the basis of the report found that nearly half of those seeking help with tax and tax credits did not have access to a computer, and claimed that It there was new evidence that government efforts to move ... Continue Reading

Whilst the main news for many employers is simply that the deadline for filing the Employers' Annual Return Form P35 is little more than a week away, there are some businesses who risk receiving automatic late filing penalties even when a Form P35 isn't actually due - for instance: The business (such as a sole trader or partnership) used to have employees but not in the 2011/12 tax year - but the PAYE Scheme itself was 'open' in 2011/12; or The business has Construction Industry ... Continue Reading

From April 2013, charities will be able to claim "top-up payments" on up to £5,000 a year of small donations without needing Gift Aid declarations, under changes announced today in The Queen’s Speech. The Gift Aid Small Donations Scheme will boost the income of charities and reduce their administrative burdens as they will not have to collect Gift Aid declarations on all small donations. The top-up payment will be 25p for every pound collected in the United Kingdom, on up to £5,000 ... Continue Reading

People trading on the Internet who haven’t paid all the tax they owe have just one month left to take part in an opportunity offered by HMRC to get their tax affairs in order on the best terms available. Under the time-limited opportunity, known as the e-Markets Disclosure Facility, online marketplace traders who come forward at any time between now and 14 June and pay the tax, duties and interest they owe by 14 September, can benefit from lower penalties than those who wait for HMRC ... Continue Reading

The 2011/12 Employer's Annual Return Form P35 season is most definitely upon us - the deadline for filing is 19 May. (See Reminder - Only 1 Month Left to File Employers' Annual Returns). As with previous years, the Form contains the question "Are you a Service Company?". As many readers will know, this is a deliberately loaded question, and the tax consequences are far-reaching if the answer is "Yes".  It will not apply to a significant proportion of companies (or employers ... Continue Reading