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LITRG gives an overview of the new penalty system for late tax returns and urges those filing on paper not to miss the 31 October 2011 deadline for 2010/11 returns.   Introduction Many of those who complete a Self Assessment tax return have now switched to filing online, which still allows you to file by 31 January 2012 for the 2010/11 tax year. However, for many taxpayers this is either impossible or impractical, or they still prefer to complete and submit a paper return, which they ... Continue Reading

Mark McLaughlin asks whether or not HM Revenue & Customs' new penalty regime is fair or proportionate. No Sense of Proportion HM Revenue & Customs (HMRC) recently issued a press release about new Self Assessment penalties for late tax returns and late payments. The press release is reproduced at the end of this editorial. As far as penalties for late filing of tax returns is concerned, the first penalties under the new regime will apply to those taxpayers who file 'paper' returns to ... Continue Reading

James Bailey looks at partnerships as a possible property business structure, for Tax Insider. Introduction A partnership is one of the oldest and most basic of business entities. Partnerships are still governed by the Partnership Act 1890, which defines a Partnership as “The relation which subsists between persons carrying on a business in common with a view to profit”. If you are a member of a partnership, it pays to read the Partnership Act 1890 carefully. Although ... Continue Reading

In the third of a series of articles, Malcolm Finney, author of 'Personal Tax Planning: Principles and Practice', looks at Private Residence Relief for trustees. Trusts and Sole or Main Residence Relief Sole or main residence relief is not restricted to ownership by individuals but may be extended to ownership by trustees (TCGA 1992 s 225). The relief applies in the case of trustee ownership where one or more beneficiaries of the trust occupy the property as a residence and are entitled ... Continue Reading

Mark McLaughlin looks at the new penalties for individuals who pay their tax bills late... ...and how to escape penalty charges. Introduction New penalties were introduced from 6 April 2011 for individuals who pay their Self Assessment tax liabilities late. Penalties under this new regime are potentially higher than the late payment surcharges they replace. However, the good news is that these penalties can be avoided in some cases. Out With the Old… The normal due date ... Continue Reading

In the light of recent consultations, LITRG stresses the importance of co-ordinating change, both within the tax system itself and with welfare reform. Introduction Significant changes in the tax system are on the way – how to determine tax residence, the impacts of being ‘non-domiciled’ (potentially affecting up to 7million people living in the UK) and greater integration of income tax and National Insurance contributions – and all with greater reliance on computers. LITRG’s ... Continue Reading

The VAT Campaign disclosure period is drawing to a close - taxpayers have until 30 September to notify HM Revenue & Customs that they intend to make the disclosure itself by 31 December. (However we should add that, based on how the Plumbers' Tax Safe Plan played out, it may be that HMRC will allow 'late' notifications to be made.) We pointed out our concerns about the VAT Campaign in our news article HMRC Targeted Campaigns Move on to VAT - particularly where people have multiple sources ... Continue Reading

Mark McLaughlin publishes an update by HM Revenue & Customs on taxpayers waiting for a Tax Campaign to start. In my editorial a couple of weeks ago, I looked at HMRC's campaigns aimed at persuading particular groups of taxpayers (e.g. plumbers) with undisclosed income to 'come clean' with HMRC and get their tax affairs in order. I pointed out that HMRC's campaigns had caused some confusion and uncertainty, and asked: "What about taxpayers who wish to come forward and make a disclosure ... Continue Reading

Danny Alexander has advised the BBC that he will be announcing, to the Liberal Democrat Party Conference, the recruitment of 2,000 more tax inspectors. Their role will apparently be to 'challenge' wealthy taxpayers who use accountants to avoid paying "their fair share". He cited recent successes in specific campaigns such as the Tax Health Plan [ Recent? It closed in June 2010! - Ed ] as evidence that more resources allocated to this area would produce more tax yield, and there was an emphasis ... Continue Reading

In the third of a series of articles, Malcolm Finney, author of 'Personal Tax Planning: Principles and Practice', looks at 'deemed' periods of occupation of the residence. Deemed Periods of Residence In ascertaining the capital gain subject to CGT (if any) on the sale of an interest in a sole or main residence any part of the capital gain attributable to periods of non-occupation (when the property is not used as a residence) would not on normal principles qualify for exemption. However, ... Continue Reading