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Mark McLaughlin considers HMRC's developing strategy for targeted tax "amnesties". HM Revenue & Customs (HMRC) recently announced various new campaigns targeting 'tax cheats' during 2011/12, beginning with traders operating above the VAT turnover threshold but who have not registered for VAT. HMRC will later be turning its attention to those who provide private tuition and coaching, 'e-marketplace' traders and tradespeople (see our news item on the subject: HMRC Extends Tax "Cheats" Campaigns) One ... Continue Reading

Mark McLaughlin CTA (Fellow) ATT TEP looks at the agency Income Tax legislation and some recent case law. Introduction The IR35 rules on services provided through intermediaries is well known to many taxpayers and tax advisers. The most common scenario is probably the ‘personal service company’. However, there is potentially an additional line of HMRC challenge to IR35, which is rather less well known. This is the ‘agency workers’ legislation (ITEPA 2003 ss 44-47). Outline The ... Continue Reading

Peter Arrowsmith FCA highlights a selection of NIC matters, and provides a timely tip about the payment of Class 1A National Insurance contributions for 2010/11. COMPS Abolished The planned abolition of contracted out rebates for money purchase schemes (company schemes) and minimum payments (personal pensions) - both with effect from 6 April 2012 - is at last confirmed by the Pensions Act 2007 (Commencement No. 4) Order 2011 (SI 2011/1267). IR35 Advice The centre for contract ... Continue Reading

James Bailey of Property Tax Insider considers potential tax saving opportunities for property owners. Introduction Landlords of residential property suffer from a disadvantage when it comes to claiming capital allowances on the cost of plant and machinery. Plant in a ‘dwelling house’ does not qualify for capital allowances. It is, however, still possible to claim capital allowances on plant installed in common areas. By ‘common areas’ I mean, for example, ... Continue Reading

Serious complaints about HMRC can be investigated by the Independent Police Complaints Commission. LITRG wonders how this fits into HMRC’s overall complaints system. The IPCC and HMRC complaints Remember the lost child benefit data in 2007? At that time, the Independent Police Complaints Commission (IPCC) investigated what had gone wrong at HMRC to cause such a catastrophe. More recently, the IPCC’s consultation on statutory guidance for HMRC gave a reminder that the ... Continue Reading

LITRG helps you to understand your taxes and check whether you might qualify for tax credits when you start work. Introduction Young people trying to enter the world of work continue to face a difficult labour market. Understanding your tax and tax credits situation can help to maximise your income and avoid possible traps. What are you - employed or self-employed? First of all, you need to understand the basis on which you are working and particularly if you are starting work ... Continue Reading

New campaigns targeting VAT defaulters, private tutors and e-marketplaces will be launched by HM Revenue & Customs (HMRC) over the next year. HMRC will use cutting-edge tools such as “web robot” software to search the Internet and find targeted information about specified people and companies. Using the software, the department can pinpoint more accurately people who have failed to pay the right tax. The “web robot”, used with the department’s Connect computer ... Continue Reading

On 6 April, LITRG launched a website to support advisers dealing with the “giving” side of HMRC. Your feedback via an online survey could help improve the site in future. Revenuebenefits.org.uk – background LITRG created this website with the support of HMRC and in partnership with Rightsnet. They intend to add progressively to its content in the coming months. To help them build on the initial success of the site, they would welcome feedback from users via an online ... Continue Reading

HM Treasury has commenced a new consultation on the "Patent Box" - designed to apply a preferential 10% rate of Corporation Tax to profits arising from patents. The intention is to promote the retention of patent activity in UK companies, so that the attendant high-value jobs in the development, manufacture and exploitation of patents remain here. It should be noted that, whilst the previous proposals last year identified a 'starting date'  so that the new rules would apply to patents ... Continue Reading

Mark McLaughlin looks at the proposed relaxation of the attribution rules for associated companies for Corporation Tax purposes. Introduction The ‘associated company’ rules are changing in Finance Act 2011. The rules are essentially an anti-avoidance measure, to prevent the creation of multiple, closely controlled companies to split a wider economic whole and take advantage of the Small Companies’ Corporation Tax Rate. That rate reduced to 20% from 1 April 2011, but ... Continue Reading