02/06/2011, by Low Incomes Tax Reform Group, Tax article - General
LITRG has strongly criticised HMRC’s policy of requiring tax credit claimants to attend interviews at enquiry centres if they are unable to answer the tax credits helpline’s security questions.
Background
HMRC have a legal duty to make reasonable adjustments to their processes to enable vulnerable groups of customers to be able to interact with them. The Equality Act 2010 requires HMRC to consider such adjustments through an Equality Impact Assessment (EQIA) made before ... Continue Reading
31/05/2011, by Lee Sharpe, Tax news - Business Tax
HM Revenue & Customs has advised that there are new "Advisory Fuel Rates" which will have effect from tomorrow, 1 June 2010.
These "fuel only" rates can apply where:
employers don't pay for employees' fuel in their company cars but want to reimburse for business mileage; or
employers do pay for all of the employee's fuel but want to avoid the private fuel benefit, so the employee reimburses for all private fuel at the 'advisory rate'
Engine Size
Petrol
LPG
1400cc ... Continue Reading
30/05/2011, by Peter Rayney, Tax article - Business Tax
Peter Rayney FCA CTA (Fellow) TEP of Peter Rayney Tax Consulting Ltd outlines methods of extracting funds or value from the family or owner-managed company.
Extracting Funds from Your Company
It is possible to extract funds or value from the company in a number of ways, although (a) to (c) below are usually available only for those shareholders who work in the company as a director or employee. The most important methods of extracting value are listed below:
directors’ ... Continue Reading
30/05/2011, by Malcolm Finney, Tax article - General
Malcolm Finney outlines the background to trust residence for Income Tax and Capital Gains Tax purposes.
Background
While a trust is a separate taxable entity, certain anti-avoidance provisions may apply, the consequences of which are that it is the settlor, and not the trust, who is subject to tax on the trust’s income and/or capital gains.
The taxation of a trust depends upon the following factors:
residence of the trust (i.e., UK resident or non-UK resident);
type ... Continue Reading
30/05/2011, by James Bailey, Tax article - General
James Bailey offers some helpful advice to taxpayers who receive an enquiry notice from HM Revenue and Customs (HMRC)
What You Should NOT Do If You Receive An Enquiry Notice
The first thing is don’t panic but don’t ignore it.
I have known a number of cases where people have received these letters and a bit like the credit card statement or the bank statement you know contains bad news, they have just put it in the back of a drawer and hoped it will go away.
You need ... Continue Reading
26/05/2011, by Low Incomes Tax Reform Group, Tax news - Income Tax
The Low Incomes Tax Reform Group (LITRG) has welcomed HMRC’s new consultation on how best to modernise the language used to define an incapacitated person for direct tax purposes.
A long journey and it’s not over yet
After many years of trying, LITRG has succeeded in getting HMRC to address the question of archaic and offensive language in tax statutes.
But LITRG believes that the consultation which started this week should go wider, as it raises more fundamental questions ... Continue Reading
26/05/2011, by Lee Sharpe, Tax news - Business Tax
A quick reminder that the deadline for notifying HM Revenue & Customs that you intend to make a disclosure under the Plumbers' Tax Safe Plan, expires on 31 May 2011.
The disclosure itself must also follow by 31 August 2011.
This 'Plan' offers reduced penalty rates - typically just 10% although they can be higher - for those who make a disclosure of previously unreported income in earlier tax years.
It should be noted that you do not have to be a plumber in order to use the Plumbers' ... Continue Reading
22/05/2011, by Steve Allen, Tax article - VAT & Excise Duties
Steve Allen of VAT Advisers Ltd looks at recent developments affecting the VAT treatment of entertainment expenses.
Introduction
In Revenue & Customs Brief 44/10, HMRC announced that it had reviewed its existing policy on the treatment of business entertainment provided to overseas customers, in light of the ECJ’s decision in the joined cases of Danfoss and AstraZeneca (Case-371/07). This article takes a look at the Brief, as well as giving a recap on the general entertainment ... Continue Reading
22/05/2011, by HM Revenue & Customs, Tax news - VAT & Excise Duties
HM Revenue & Customs (HMRC) has announced an initiative to crack down on VAT rule breakers. The new campaign will focus on businesses who are trading above the VAT threshold but who have not yet registered for VAT.
The initiative is being discussed with interested parties to ensure HMRC has as much information from them as possible before launching the campaign later in the summer.
Mike Wells, HMRC's Director of Risk and Intelligence, said:
“Our aim is to get as much input as ... Continue Reading
22/05/2011, by HM Revenue & Customs, Tax article - Business Tax
HM Revenue & Customs warns that it will be examining construction projects linked to the Olympic Games for Tax, National Insurance or National Minimum Wage issues.
Introduction
Companies working on construction projects for next summer’s Olympic Games are warned that HM Revenue & Customs (HMRC) will crack down on Tax, National Insurance or National Minimum Wage breaches.
Mike Eland, HMRC’s Director General of Enforcement and Compliance, said:
“We aim to help ... Continue Reading
