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Roger Tull, co-founder of Adviser Compass, highlights a potential problem regarding pension input periods. Introduction Most of us will recall that in 2006 the previous Government made efforts to simplify the complexities of pension planning, bringing together some of the old diverse pension regimes, and bringing in a new Lifetime Allowance and a new (and surprisingly high) Annual Allowance for contributions - a gross payment of 100% of earned income would qualify for tax relief, up ... Continue Reading

The Plumbers' Tax Safe Plan was announced last week, which prompted TaxationWeb to put the following questions to Brian Redford, Acting Director of HMRC's Business Customer Unit Why has HMRC apparently focused on plumbers/the Home Improvement sector? Does HMRC have a list of businesses or other activities which it intends to move on to in due course - are there more such targeted Plans in the ...pipeline? This is the first part of an ongoing programme focusing on trades people. We hold ... Continue Reading

Companies across the UK are being reminded of important changes to Corporation Tax (CT) filing and payment, which come into effect next month. From April 2011, all Corporation Tax payments will have to be made electronically, and all company tax returns must be filed online for accounting periods ending after 31 March 2010. The returns will also have to be filed using a specified data format, known as Inline XBRL or iXBRL. As well as limited companies, the changes will affect other organisations ... Continue Reading

As part of a range of measures to help the struggling European newspaper and book industries, the European Union is looking at reducing the VAT rates on electronic print. This could provide a boost for news and book publishers on e-tablets, the Internet and CD Books. EU to Eliminate VAT Penalty on Electronic Publishers In almost every EU member state, printed books and newspapers incur a reduced VAT rate. However, most countries impose the standard higher rate on electronic material.  ... Continue Reading

Mark McLaughlin CTA (Fellow) ATT TEP looks at the potential problems when considering HMRC guidance. Introduction Taxpayers (and advisers) strive for certainty when dealing with tax issues. The legislation is often unclear, and taxpayers may therefore resort to seeking comfort from guidance published by HM Revenue and Customs (HMRC), such as booklets or its manuals. This guidance does not carry the force of the law, but can it be relied upon, if its statements are clear and unequivocal, ... Continue Reading

Malcolm Finney looks at tax implications of life policies for Tax Insider Magazine. Introduction Life assurance policies are primarily a way in which an individual may provide some financial protection for his or her family by way of a cash lump sum payable on his or her (typically the breadwinner’s) death. But what is the tax liability for the family left behind? Qualifying Life Policies An individual may take out a 'whole of life' policy on his own life which pays a cash ... Continue Reading

Brian Redford, Acting Director, Business Customer Unit, explains HM Revenue & Customs’ (HMRC's) new approach to tax evasion. Introduction From February 2011, sole traders and small businesses who have deliberately tried to pay less tax than they should, could find their businesses singled out for extra inspections by HMRC for up to five years. Deliberate evaders identified since 6 April 2009 will also be put under this additional scrutiny. Managing Deliberate Defaulters Most ... Continue Reading

Today, HM Revenue & Customs has launched the Plumbers' Tax Safe Plan, primarily aimed at small traders working in plumbing, heating and gas installation sectors.However, it is important to note that the scope of the Plan is much broader than this: any business is potentially eligible and not just in the Home Improvement sector; it is available to companies as well as to individuals; and initial investigations indicate that even people without a business - i.e., with undeclared investment income - ... Continue Reading

Introduction Plumbers, gas fitters and heating engineers are being targeted by the tax authorities in a clampdown on tradespeople failing to declare their earnings and pay tax. Under the tax plan, plumbers, gas fitters, heating engineers and members of associated trades, who have tax to pay which they have not yet told HM Revenue & Customs (HMRC) about, can come forward by 31 May to tell the department of their intention to disclose what they owe. If they make a full disclosure, most face ... Continue Reading

LITRG provides a positive update on HMRC’s position as regards writing off PAYE underpayments which stem from HMRC’s failure to match taxable state benefits to claimants’ other income.   Those in peril… LITRG has been contacted by large numbers of distressed state benefits claimants who have received PAYE ‘P800’ tax calculations from HMRC showing they have not paid enough tax. This is because HMRC’s old PAYE computer system failed to join ... Continue Reading