25/10/2011, by HM Revenue & Customs, Tax news - HMRC Administration, Practice and Methods
Introduction
Employers play a vital role in the operation of PAYE by sending in their annual PAYE returns to HM Revenue & Customs (HMRC), providing details of employees’ tax and National Insurance contributions. However in our experience these returns are not always accurate.
Employer returns for 2009/10 revealed the following incorrect information:
128 staff entered as Mr, Ms or Mrs ‘Dummy’;
572 people whose surnames only included the letter X, ranging ... Continue Reading
25/10/2011, by HM Revenue & Customs, Tax news - HMRC Administration, Practice and Methods
With the 31 October deadline for paper tax returns just days away, HM Revenue & Customs (HMRC) is urging anyone who hasn’t yet filed their paper return to act now, to avoid a new late filing penalty.
If you send in a paper tax return on or after 1 November, you will now incur a £100 penalty – even if there is no tax to pay or the tax due is paid on time – following the introduction of a new penalty regime this year. The longer you delay, the more you'll have to pay, as there ... Continue Reading
24/10/2011, by Low Incomes Tax Reform Group, Tax article - Income Tax
The Office of Tax Simplification is examining simplifying the tax system for pensioners. Paddy Millard, member of LITRG and former CEO of TaxHelp for Older People, sums up the position.
“Tax doesn’t have to be taxing ...”
Yeah, right, you mutter, so why is it? Do you feel a strong urge to put a brick through the television screen when you hear that line? Why, you growl, does tax have to be so complicated?
Well, a lot of the answer lies in history. We have income ... Continue Reading
24/10/2011, by Peter Vaines, Tax article - Business Tax
Peter Vaines asks, is HM Revenue & Customs pushing the principle of Presumption of Continuity too far in its tax enquiries?
Introduction
The recent tax tribunal decision in Dr Syed v HMRC TC 1776 has been bothering me. On the face of it, this was a straightforward case of HMRC denying a tax deduction for some of the expenses in a sole trader’s accounts. It would appear that some negotiations took place and Dr Syed’s accountants eventually agreed some adjustment to the computations. ... Continue Reading
24/10/2011, by Malcolm Finney, Tax article - Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
Retire to Spain and Avoid Inheritance Tax!
Malcolm Finney looks at whether or not UK taxpayers can exploit domicile potentially to avoid Inheritance Tax.
Introduction
Despite the Conservatives’ promise to increase the level at which Inheritance Tax (IHT) becomes payable from the current level of £325,000 to £1 million nothing, as yet, has happened nor will happen until at the very earliest 2015 (if ever). IHT thus remains a problem for many people.
Perhaps the answer ... Continue Reading
24/10/2011, by Keith M Gordon, Tax article - General
What is the procedure for trying to get HMRC to agree to a late appeal? Keith Gordon, author of Tax Chamber Hearings: A User’s Guide, reviews the law and practice relating to late tax appeals.
Basic Time Limit for Tax Appeals
The general rule governing the timing of tax appeals is that taxpayers should do one of the following within 30 days:
give a written appeal against the decision to HMRC; or
(in indirect tax cases) either accept the offer of an internal review ... Continue Reading
22/10/2011, by Mark McLaughlin CTA (Fellow) ATT TEP, Tax article - General
Early in September, my editorial Twist or Stick - Disclosing Early to HM Revenue & Customs looked at HM Revenue and Customs (HMRC) campaigns aimed at 'customers' in specific risk areas of tax loss. Previous campaigns have targeted offshore investments, medical professionals, plumbers, and those trading above the VAT threshold who have not registered for VAT.
The latest HMRC campaign ('The Tax Catch Up Plan') was launched on 10 October. It targets tutors and coaches who have undeclared tax ... Continue Reading
21/10/2011, by Low Incomes Tax Reform Group, Tax article - Income Tax
Following recent press coverage about PAYE ‘failures’, LITRG outlines what is really happening.
Recent reports
Once again the press have been having a go at HMRC about Pay As You Earn (PAYE) failures.
Whilst LITRG is not slow to criticise HMRC when appropriate, the group thinks that the public should be aware that the current reported “mess” (PAYE underpayments and overpayments) arises because HMRC have become more efficient rather than less so.
So ... Continue Reading
17/10/2011, by Lee Sharpe, Tax news - HMRC Administration, Practice and Methods
Last week, HM Revenue & Customs publicised that it was to "target UK residents and organisations holding Swiss bank accounts with the HSBC in Geneva who may not have reported all their income and gains to HMRC".
Also, that it had "begun criminal and serious fraud investigations into more than 500 individuals and organisations holding these accounts".
Whilst the official version of the press release simply reported that it was acting on information received last year under a tax treaty, ... Continue Reading
16/10/2011, by Peter Arrowsmith FCA, Tax article - PAYE and Payroll Taxes, National Insurance, NICs
Peter Arrowsmith FCA highlights a selection of NIC matters, and provides a helpful tip regarding the non-means tested Winter Fuel Allowance.
NIC Holiday for New Employers
The number of successful applications has (as of 5 September) reached 6,316, said Mark Hoban in a Commons Written Answer.
A Handy 'Tip'
In Knowledgepoint 360 Group Ltd v HMRC (TC 1291), after the sale of the business, one of two employee benefit trusts made, to those former employees who remained, non-contractual ... Continue Reading
