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HM Revenue & Customs (HMRC) has admitted that its approach to charging businesses VAT on some of the private fuel made available for private use contravenes EU law and that the rules must be changed.  The point of interest for some businesses will be as follows: In the absence of detailed mileage records to derive an accurate apportionment, HMRC has traditionally required businesses to account for VAT at least to the extent of the Road Fuel Scale Charge - even where ... Continue Reading

TWEd complains that HMRC staff cuts could affect the level of service to taxpayers. Well, it’s been another busy week at TW Towers II. (Are there ever any quiet weeks any more?) Tax, it seems, waits for no man. Or ‘non-natural person’ of whatever creed. It seems that the furore over the so-called "pasty tax" has not yet abated – fuelled in part, no doubt, by a certain high street baker’s vegetarian offering. (At least in my house – although Mrs. Ed. broke ... Continue Reading

HM Revenue & Customs has recently launched a new "Bereavement Service" to help people who are dealing with the tax affairs of someone who have died. This has been identified as one of a handful of key areas for improvement after consultations with the professional bodies and other representatives.  The service has been improved by providing A single point of contact for those wanting to discuss tax issues relating to the estate of someone who has died, in respect ... Continue Reading

TaxationWeb’s General Editor takes a less than objective look at how HMRC’s falling staff numbers are affecting its service to taxpayers. Introduction There were a few things which have caught my eye over the last few days, which have prompted me to’ pen’ this article. By way of introduction, I am a tax adviser in practice by day and therefore deal with HMRC by telephone, e-mail (yes, e-mail!) and letter every day. As evidence that I am not just a jaded cynic ... Continue Reading

It is possible to get your VAT back even without a VAT Invoice or Receipt, explains Andrew Needham for Tax Insider. Invoicing Rules The normal rules are that HMRC expects a business to obtain a purchase invoice from a supplier in order to recover the input tax that it is charged. If the purchase is for over £250 excluding VAT you will need a full tax invoice but for purchases under £250 a less detailed invoice is required - till receipts for fuel purchases for example. However, ... Continue Reading

Whilst the BBC has announced that a move to amend the infamous "pasty tax" may have failed - Ministers See Off Pasty Rebels - HMRC has extended the consultation period on VAT: Addressing Borderline Anomalies (including VAT on "Catering and Hot Takeaway Food" - aka pasties, amongst other things) by a fortnight from 4 May to 18 May.  The Pasty Rebels had hoped to include an amendment to the Finance Bill so as to exclude VAT on freshly baked produce where no attempt ... Continue Reading

Mark McLaughlin considers the occupation, permanence and continuity requirements for the private residence Capital Gains Tax relief. Only or Main Residence Relief The Capital Gains Tax (CGT) relief on disposal of an individual’s only or main residence is very valuable and well known. Taxpayers are generally aware of the need to reside in the property, which is a fundamental requirement for Principal Private Residence (PPR) relief. However, what degree of permanence and continuity ... Continue Reading

With the 2011/12 tax year now ended, employers across the country are being reminded to send in their annual returns on time, or face a penalty. Employer Annual Returns, which provide information on employees’ tax and National Insurance deductions during the tax year, must be sent online* to HM Revenue & Customs (HMRC) by the 19 May deadline. If you file your return late, you’ll be charged a penalty of £100 per 50 employees for each month, or part month, that your return ... Continue Reading

Tax Insider Looks at 10 Tax Savings Tips for the new tax year. 1. Personal Allowance Everyone is entitled to a tax-free personal allowance - including children. A check should be made to ensure that everyone in the family is fully utilising theirs. 2. Age Allowance In the year that you turn 65 you will be entitled to an increased personal tax allowance (£10,500 for 2012-13). However, once income reaches a certain limit (£25,400 for 2012–13) a much higher tax rate may ... Continue Reading

Mark McLaughlin asks if HM Revenue & Customs' mission is to collect the right amount of tax or just as much as it can get from taxpayers. I was intrigued to read Chancellor of the Exchequer George Osborne's recent letter to HM Revenue & Customs' Chief Executive Lin Homer, which is headed 'Remit for HM Revenue & Customs 2012-13'. This letter sets out the Chancellor's priorities for HM Revenue & Customs (HMRC) in the areas of improving tax collection, delivering cost reductions, improving ... Continue Reading