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Three new free toolkits have just been launched by HM Revenue & Customs (HMRC) to help tax agents and their clients reduce errors when completing tax returns. The toolkits, which are available from Toolkits to Help Reduce Errors cover: VAT Partial Exemption; VAT Output Tax; National Insurance Contributions and Statutory Payments. Brian Redford, Acting Director, Business Customer Unit, said: “Our free toolkits have been well received by agents because we ... Continue Reading

HM Revenue & Customs (HMRC) has launched ‘Basic PAYE Tools’ to help employers run their payroll systems. The new online resource replaces HMRC’s popular Employer CD-ROM. It includes all the CD-ROM’s interactive features plus an automatic update facility, to ensure the tools are up to date with the latest information and figures. Employers who have used the CD-ROM will need the new tools for the remainder of the 2010-11 tax year and for future tax years. The tools ... Continue Reading

Peter Arrowsmith FCA highlights a selection of National Insurance matters, and provides a timely tip regarding NIC repayment claims. National Insurance Contributions Bill The Bill was reported in the Commons on 13 January 2011 (not having been amended at all in Committee) and had its third reading. On the same day it had its first reading in the Lords. During the December Committee Stages HMRC revealed that there had then been just over 1,100 applications to date - of which 54 ... Continue Reading

Tony Granger looks at the Inheritance Tax implications of certain loans for Business Property Relief purposes for Tax Insider Lite. Introduction What is the Business Property Relief (BPR) position for Inheritance Tax (IHT) purposes of a Director’s loan account and that of a Partner’s or LLP Member’s capital account?  One qualifies for BPR, the other does not! ‘Positive’ Director’s Loan Account A director’s loan account can be viewed ... Continue Reading

Steve Allen of VAT Advisers Ltd reports on proposals for a helpful VAT exemption. Introduction In both the March and June 2010 Budgets, HMRC affirmed its intention to implement the EU cost-sharing exemption in the UK.   It is an exemption from VAT which is provided for in EU law, and applies where shared costs are recharged between partnered entities. If the exemption is applied in the UK (it is already in place in several other Member States), it would remove the irrecoverable ... Continue Reading

LITRG urges less technical jargon, more detail and commitment to ongoing review in HMRC’s plans to deliver better value for money and accountability as part of the Government’s transparency agenda. Introduction The Government wants the general public to trust it and the agencies which deliver public services, both at central and local government level. For this reason, moves are being made to publish more information – everything from the expenses of Members of Parliament ... Continue Reading

Enabling people with disabilities to live independently and decide on their own care is an important government policy. But for it to work, the tax implications need government consideration. Introduction LITRG has highlighted the tax implications aspects of the individual budget approach in its response to a recent call for evidence on care and support strategy. The consultation In December 2010, the Commission on Funding on Care and Support (the Dilnot Commission) asked for ... Continue Reading

You might assume that February is a quiet month after the rush of filing tax returns by 31 January. But there are a number of things to watch out for. Introduction Each month, LITRG aims to produce an article giving topical tax, tax credits and related welfare benefits reminders and tips. Here we look at points to consider in February. Tax Appealing against penalty notices for late 2009/10 tax returns February is the month when HMRC issue £100 penalties for late self-assessment ... Continue Reading

Oliver R. Hoor, author of 'The OECD Model Tax Convention - A Comprehensive Technical Analysis', provides a background and brief history of double tax treaties. Introduction Where individuals or enterprises perform cross-border activities, they are regularly subject to tax in different jurisdictions. International juridical double taxation is mainly linked to the fact that most jurisdictions levy tax on the worldwide income of their residents and certain activities that are closely connected ... Continue Reading

For some time it has been possible for employers to provide employees with vouchers enabling them to access childcare, and this benefit is tax-free up to a certain limit – currently £55 per week – but the rules for childcare vouchers are about to change, as James Bailey explains. Introduction £55 tax free is of course worth more to a 40% taxpayer than to a 20% taxpayer, and still more to a 50% ‘fat cat’, so you will be delighted to hear that HMRC have come up ... Continue Reading