Enter Your E-mail

Parents with a teenager approaching 16 should let HMRC know if they are continuing in full time education so they continue to receive child benefit. HMRC’s Director of Benefits and Credits, Steve Lamey, said: “At this time of year, families decide whether a child will continue in education or training once they have seen their GCSE results. If their child is staying on full-time, they need to let us know the full details as soon as possible so that their child benefit doesn’t ... Continue Reading

In an earlier article, CIOT Challenges HMRC on VAT Flat Rate Scheme and Bank Interest, we pointed out that the HMRC publication VAT Notice 733 ("Flat Rate Scheme for Small Businesses") which at the time had recently been updated, still advised that bank interest should be included in the Flat Rate Scheme calculation. (i.e., that VAT should be accounted for on bank interest income to a business registered under the Scheme). We are pleased to note that Notice 733 has been updated again - Flate ... Continue Reading

In our news item HMRC Delays Issuing Self Assessment Statements of Account - Interest to be Postponed, we reported that HM Revenue & Customs (HMRC) had admitted to serious delays in issuing the 31 July Statements for taxpayers whose UTR tax references ended from "70" to "99" (inclusive) but that they wouldn't pursue interest on late payment provided the outstanding balance was paid within 30 days of receipt of the (late) statement. In its latest announcement on the issue, (Update: Delay in ... Continue Reading

Peter Arrowsmith FCA highlights a selection of NIC matters, and provides a helpful tip for those working on overseas secondments. Integrating Tax and NIC … or rather, just the operation of them - as announced in the March Budget. A consultation document is scheduled for the Autumn but ahead of that the Treasury and HM Revenue and Customs have issued a joint call for evidence. It is available at Integrating the Operation of Income Tax and National Insurance Contributions. It's ... Continue Reading

Mark McLaughlin looks at how HM Revenue & Customs handles requests by taxpayers for more time to pay their tax bills. Introduction Taxpayers who do not pay their tax liabilities on time fall into two categories – those who ‘can’t pay’, and those who ‘won’t pay’. At least that seems to be the view of HM Revenue and Customs (HMRC). What difference does it make which category you fall into if you have tax debts? The answer is – quite a bit! Tax ... Continue Reading

Robin Williamson of the Low Incomes Tax Reform Group asks if HMRC is ready for a role in the government's Big Society Last weekend, after a lengthy and thorough inquiry, the influential House of Commons Treasury Committee published its report on the Administration and Effectiveness of HM Revenue & Customs Uniquely among Government departments, HMRC’s expenditure is “dwarfed by the amount of revenue it collects”. The Committee paints a bleak picture of a Department ... Continue Reading

Malcolm Gunn for Tax Insider highlights an arrangement which offers potential significant IHT savings. Introduction Non-Resident Pension Schemes can offer significant IHT savings. Relatively new to the market place are offshore pension schemes known as QNUPS - Qualifying Non-Resident Pension Schemes.  They are governed by regulations issued early in 2010 and are beginning to appear in various offshore jurisdictions, such as Guernsey and Malta. What makes them most interesting from a ... Continue Reading

Financial issues don’t go away, even in the holiday season. LITRG urge you to spare a few minutes to read this month’s summary of topical tax and tax credits matters. Introduction As part of LITRG’s monthly series of reminder articles, topical tax and tax credits issues are covered under these headings: Tax return or tax payment troubles? Tax credits Students Where advised to contact HMRC, if you telephone them, keep a careful note of your ... Continue Reading

Julie Butler FCA points out recent changes and potential tax planning opportunities concerning Capital Allowances. Introduction With the Annual Investment Allowance (AIA) being significantly reduced from April 2012 there is great incentive for farmers to maximise Capital Allowances (CAs) for the forthcoming tax year. With greater farm profits expected due to increased corn prices and a general world shortage of food, there is great tax planning potential. The Wetherspoon Case Currently, ... Continue Reading

Penny Hamilton and Oliver Connolly considers some practical aspects to HMRC’s approach to the review process (for all taxes except restoration decisions under CEMA, s 152(b)).   Introduction At the time of writing there is little or no information in the public domain as to how the review process actually works in practice. It is therefore useful to consider how HMRC intend the process to work and the best indication of this is in the internal guidance that they have issued ... Continue Reading