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Andrew Needham provides some practical advice for businesses facing an HM Revenue & Customs VAT inspection, for Tax Insider Magazine. Why am I Getting a Visit? In most cases businesses are selected for a VAT inspection by a computerised selection process based on criteria including the business' turnover, its trade class and past compliance history. Most small to medium sized businesses only get a visit once every 5-10 years and some never get a visit at all! Tip You can ... Continue Reading

In the sixth of a series of articles, Malcolm Finney, author of 'Personal Tax Planning: Principles and Practice', looks at the effect of divorce and separation on main residence relief. Introduction to Divorce or Separation A married couple who are living together are entitled to one sole or main residence (TCGA 1992 s 222). This does not apply where: the spouses are not living together; or following divorce. In either of these two situations each spouse may possess ... Continue Reading

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

Mark McLaughlin highlights a recent case involving a taxpayer's appeal against an HMRC Tax Calculation Notice Introduction It is normally straightforward to tell when HM Revenue and Customs (HMRC) have raised an assessment in respect of a taxpayer. However, what constitutes an ‘assessment’? This is an important question because assessments are generally subject to a right of appeal. But is there a right of appeal against an HMRC tax calculation notice? Right of Appeal? In ... Continue Reading

Mark McLaughlin updates on the caring side of HM Revenue & Customs... In my editorial last week, I told the true story of a recent visit to my home by a HMRC officer. HMRC was seeking to levy distraint on my goods and assets for an 'outstanding' PAYE liability for month 4 ending 5 August 2011, even though I am not a director or major shareholder of the company to which the liability relates, and despite the fact that my home is not a place of business for the company. In addition, the PAYE ... Continue Reading

Tax has been in the news a lot in recent weeks, particularly debating the 50p rate. But here, LITRG concentrates on current issues for those on lower incomes.   Introduction In the tax world, a month never passes without there being something to consider, depending on your situation – whether you are an employee paying tax under PAYE, filing self-assessment tax returns, a tax credits claimant, or even all three! LITRG reminds you below of some points to consider in October. Filing ... Continue Reading

In this week's Editorial Mark McLaughlin recounts how HM Revenue & Customs came round and threatened to take his television... I returned home from work on Tuesday evening to find a hand delivered letter from HM Revenue & Customs (HMRC). The letter stated that a 'field force agent' had called today to levy distraint on my goods and assets. It warned: "You must pay now. If you do not, I will call again to levy distraint. This means I will seize your possessions and arrange for them ... Continue Reading

In the fifth of a series of articles, Malcolm Finney, author of 'Personal Tax Planning: Principles and Practice', looks at the tax implications of death and sole or main residence relief and how to avoid a possible tax trap when estate planning. Introduction Any capital gain made on the disposal of the former family home of the deceased by the executors during the administration period is in principle subject to CGT. Executors are liable to CGT on capital gains arising on disposals ... Continue Reading

Peter Vaines has some good news but also a word of caution for certain taxpayers who pay the Remittance Basis tax charge.  Introduction When the "non-dom" (Remittance Basis) charge was introduced in 2008, the Budget papers contained a lengthy opinion obtained by HMRC from Skadden, Arps, Slate, Meagher and Flom LLP, the distinguished US firm, to the effect that credit would be available for the £30,000 charge against the individual’s liability to US tax. (It seemed to me that ... Continue Reading

Mark McLaughlin highlights HMRC's approach to establishing the beneficial ownership of property for Capital Gains Tax purposes. Introduction It ought to be straightforward enough to identify who has made a disposal for Capital Gains Tax (CGT) purposes. Of courses, tax is seldom black and white. The tax legislation offers little help. It simply states: “Tax shall be charged… in respect of capital gains, that is to say chargeable gains… accruing to a person on the disposal ... Continue Reading