16/12/2010, by Lee Sharpe, Tax news - HMRC Administration, Practice and Methods
The Office of Tax Simplification has published an interim report on its work as regards the tax 'reliefs' currently available, which number more than a thousand.
So far, the report has highlighted 3 reliefs that it suggests should be retained, 5 which should be simplified, and 5 which the Office thinks might be abolished.
It is perhaps unsurprising that the 15p a day Luncheon Voucher relief finds itself in the last category, alongside Millenium Gift Aid, Vaccine Research Relief, and ... Continue Reading
12/12/2010, by Julie Butler, FCA, Tax article - Business Tax
Julie Butler FCA of Butler and Co outlines a possible action plan involving potential development land which has been used for agricultural purposes.
Introduction
With more development potential now presenting itself for agricultural land, serious tax planning will be needed and the £5million limit for Entrepreneurs’ Relief will be looked to.
The Problems with Entrepreneurs' Relief and Rollover Relief
The criteria for Entrepreneurs’ Relief are fairly onerous: there ... Continue Reading
12/12/2010, by Peter Arrowsmith FCA, Tax article - PAYE and Payroll Taxes, National Insurance, NICs
Peter Arrowsmith FCA highlights a selection of NIC matters, and looks at the new 'NIC Holiday' for certain employers.
National Insurance Contributions Bill
The long-expected National Insurance Contributions Bill is now proceeding through Parliament, having only been introduced into the Commons on 14 October 2010. It had its second reading on 23 November when it was committed to a Public Bill Committee scheduled for 2 December and to be concluded on or before 9 December.
The Bill ... Continue Reading
12/12/2010, by Steve Allen, Tax article - VAT & Excise Duties
Steve Allen of VAT Advisers Ltd provides some useful VAT pointers for reclaiming input VAT on certain expenses.
Introduction
The rules for recovering VAT on business and travel expenses can be something of a minefield. Apart from not knowing whether the VAT is recoverable or not, another common problem is not knowing whether the costs have VAT on them to begin with.
1. Entertainment costs
VAT cannot be recovered on the cost of providing ‘business entertainment’ ... Continue Reading
09/12/2010, by Lee Sharpe, Tax news - HMRC Administration, Practice and Methods
HM Revenue & Customs has published the Income Tax allowances, rates and thresholds, NIC rates, Tax Credit rates and thresholds, and the Individual Savings Account (ISA) subscription limit, to be used from 6 April 2011.Details can be found at: Tables Confirming Tax and Tax Credit Rates and Thresholds for 2011-12As expected, there's been a significant rise in the National Insurance Contributions threshold, (i.e., the earnings level at which NICs start to be due), broadly to match the rise in Income ... Continue Reading
07/12/2010, by Low Incomes Tax Reform Group, Tax article - Income Tax
LITRG queries whether the coalition has a tax policy for pensioners in the light of recently announced personal allowances and tax rate bands for 2011/12.
New government, new policies
Much was made of the coalition policy to increase personal allowances towards a target of £10,000 for those under 65. Less has been said about the tax policy towards pensioners. With the announcement at the end of last week of the personal allowance figures for pensioners, we can see that unless a new ... Continue Reading
07/12/2010, by Low Incomes Tax Reform Group, Tax article - Income Tax
As PAYE tax calculations for 2008/09 and 2009/10 continue to land on doormats, LITRG outlines some issues to look out for, particularly for pensioners, from typical cases seen so far.
The story so far
We have previously provided guidance (see useful links below) on what to do if you receive a PAYE tax calculation (‘P800’). Now that a few more weeks have passed, we are still concerned at the variety of issues emerging which might mean your P800 tax calculation is incorrect ... Continue Reading
06/12/2010, by Lee Sharpe, Tax news - HMRC Administration, Practice and Methods
HM Revenue & Customs has announced that farmers will be permitted to use 'Red Diesel' (Rebated Heavy Oil) on public roads, when helping to grit or clear roads in rural areas during the current period of extremely cold weather.Although chemically similar to normal diesel, red diesel is much cheaper than standard forecourt diesel because it has significantly lower fuel duties charged per litre - and has a special red dye added to it as a visual indicator that it has suffered lower taxes. Whilst farmers ... Continue Reading
04/12/2010, by Steve Allen, Tax article - VAT & Excise Duties
Steve Allen of VAT Advisers Ltd looks at the reduced rate of VAT for certain types of building works relating to residential property.
Introduction
My, how time passes - 1 April 2011 will mark the 10th anniversary of the introduction of the 5% reduced rate of VAT for certain types of building works relating to residential property. The 5% rate was part of the Government’s 2001 ‘Urban Regeneration Scheme’, which encouraged redevelopment of brownfield sites rather than ... Continue Reading
04/12/2010, by Lee Young, Tax article - General
Lee Young reviews ‘Personal Tax Planning: Principles and Practice’ by Malcolm Finney (Published by Bloomsbury Professional)
On a weekend when the latest Harry Potter extravaganza is released at the cinema, instead of enjoying the film with the family I am reviewing Personal Tax Planning: Principles and Practice by Malcolm Finney.
J K Rowling he isn’t, and his characters, although always seeming to get into tax-related scrapes, are less compelling than Rowling’s ... Continue Reading
