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HM Revenue & Customs has announced that there will be 30 new taskforces to target specific business sectors in specific geographic locations where they have evidence of tax evasion. The intended targets include: The 'rag' trade - wholesale market for clothes including import, rather than shops The motor trade - here we understand that HMRC is evaluating all aspects of the industry, including dealers and garages Indoor and outdoor markets Whilst more detailed ... Continue Reading

HM Revenue & Customs has announced that it now accepts that smartphones 'count' as ordinary mobile telephones, for the purposes of employment taxes and benefits in kind. Whilst the huge growth in smartphone sales in today's market makes such distinctions seem meaningless, HMRC is effectively saying that they now accept smartphones were always eligible as normal mobile phones for tax purposes. This means that employers who followed the strict guidelines previously published ... Continue Reading

Mark McLaughlin looks at recent HMRC guidance on giving taxpayers more time to pay their tax bills. Introduction Most tax professionals and many taxpayers will be familiar with the concept of ‘Time To Pay’ (TTP) arrangements with HM Revenue and Customs (HMRC). The basic position of HMRC is that tax is payable when due by law (note - the tax legislation does allow certain tax liabilities to be paid by instalments, but such instances are relatively uncommon). However, HMRC ... Continue Reading

After last week's 'media frenzy' one might be expecting a sense of relative calm to return. If, however, you're thinking of winding up a company and extracting accumulated profits in a tax-efficient manner, then you might just want to keep those skates on - the favourable tax treatment afforded by Extra-Statutory Concession C16 is due to close at the end of February but there is still time to make use of it even now - see Company Distributions on "Winding Up" - ESC C16 Still Works - For Now! HM ... Continue Reading

BKLTax welcomes the changes to the taxation of foreign currency bank accounts announced in Finance Bill 2012 but also warns that prompt action may be appropriate in some cases. Introduction At present, bank accounts denominated in a currency other than Sterling ("Foreign Currency Bank Accounts" or FCBAs) are chargeable assets for UK CGT purposes. This means that in principle a capital gain or loss needs to be computed every time money is withdrawn from an FCBA unless the withdrawal is ... Continue Reading

Many readers will be aware that Extra-Statutory Concession C16 has for several years allowed distributions prior to a company's dissolution (commonly referred to as 'distributions on a "winding up"') to be treated as capital receipts in the hands of the company's shareholders, rather than income.  This special treatment is generally more favourable - particularly in circumstances where the shareholder is in a position to claim Entrepreneurs' Relief or similar - as the tax saving ... Continue Reading

Electricians should pay any undisclosed tax they owe or face tough penalties, warns HM Revenue & Customs (HMRC) as it prepares to crack down on electricians who fail to pay what they owe. HMRC Will Write to 50,000 Electricians HMRC is writing to 50,000 electricians offering them a special time-limited opportunity called the Electricians’ Tax Safe Plan. The plan allows them to disclose any unpaid tax and pay up on the best possible terms. Those who take advantage of it will face ... Continue Reading

HMRC has announced that farmers can use red diesel in their tractors to grit and to clear snow from public roads. In a move similar to the one announced last Winter,( HMRC says Farmers can use Low Duty Red Diesel to Help Out Clearing Public Roads ), HMRC has said that during extreme weather, farmers will be able to use red diesel in agricultural tractors that are working on public roads to clear snow, or when gritting, so as to provide access to schools, hospitals, ... Continue Reading

HM Revenue & Customs (HMRC) has launched a new online video to help employers reduce the problems caused by inaccurate employee data. Every year, HMRC receives thousands of employer returns, containing the details of millions of employees, including names, dates of birth and National Insurance numbers. While the vast majority of the employee data is correct, in some cases dummy, incomplete or incorrect information is included. For example, a recent study of employer returns found that ... Continue Reading

The Chartered Institute of Taxation has published a useful guide to some of the practical issues relating to a claim for Entrepreneurs' Relief. The guide is based on a series of Questions and Answers derived from ongoing discussions with HM Revenue & Customs. Issues covered include: Can the disposal precede cessation of trade and still qualify, despite what the legislation says? What constitutes the qualifying disposal of a part of a business? The exercise ... Continue Reading