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The Office of Tax Simplification (OTS) set itself the task of compiling a list of all tax reliefs, allowances and exemptions available for businesses and individuals and has just published the results - see Tax Reliefs Review They have reached a grand total of 1,042 such reliefs. This wasn't just for fun: the intention is to rationalise those reliefs, both in terms of overall numbers and individual complexity. But while the total number of reliefs has caught everyone by surprise - apparently ... Continue Reading

HM Revenue & Customs wants to highlight that taxpayers sometimes need to notify them about certain changes in their business or financial circumstances     Introduction Are you renting out a property or receiving extra income outside your regular job? Have you started a small business? Is your business turnover about to reach £70,000? Or have you sold an asset and made a profit? You need to tell HM Revenue & Customs (HMRC) about these, or any other changes that mean you ... Continue Reading

LITRG gives a few reminders to help review your finances at this time of the year – make sure you are not missing any tax deadlines or losing out on benefits. Introduction As part of a monthly series of reminder articles, LITRG gives current advice below on tax and tax credits matters to consider at this time of year, starting with self-assessment taxpayers then moving onto PAYE taxpayers and finally looking at tax credits claimants. If you missed the deadline for filing your ... Continue Reading

In the ninth of a series of extracts adapted from his eBook 'Hutton on Estate Planning' (3rd Edition), Matthew Hutton looks at estate planning involving family members. The Family Unit - What is it? Long gone are the days where the family unit might be generally understood as meaning husband, wife and 2.4 children. And in very many cases, the needs of what might be called ‘the extended family’ must be taken into account. However, for the purposes of this book I am concerned ... Continue Reading

Julie Butler FCA of Butler & Co highlights a recent report on an encouraging case for taxpayers dealing with property valuations for Inheritance Tax purposes. Introduction A recent case heard before the Lands Chamber (Linda Frances Chadwick and another (Hobart’s Executors)) was won by the taxpayer. This case gives weight to the importance of fighting for genuine market value figures for property valued at the date of death for Inheritance Tax (IHT) purposes in good faith and with ... Continue Reading

Steve Allen of VAT Advisers Ltd reports on a further selection of recent VAT cases. Tribunal says Bad Debt Relief due on Unpaid Loan Balances This case concerns bad debt relief, and is interesting because of HMRC’s approach to the meaning of ‘outstanding amount’ under VATA 1994 s 36. The Appellant had a bad debt upon which it felt it was entitled to relief. A customer owed it over £1.25m on two agreements called the ‘Logistics Support Agreement’ (LSA) ... Continue Reading

Responding to consultation on phasing out the default retirement age, LITRG highlights some issues arising from the line between working life and retirement becoming increasingly blurred. Introduction The Government recently consulted on proposals which will prevent employers, except perhaps in exceptional circumstances, from forcing employees to retire at age 65. This is of course coupled with confirmation in the recent Spending Review to step up the escalation in state pension age ... Continue Reading

LITRG urges Government caution when introducing ‘Universal Credit’ - set to replace many existing tax credits and benefits in the biggest overhaul of the benefits system for a generation. Introduction Whilst we broadly welcome the initiative of a ‘Universal Credit’, there is as yet insufficient detail to tell whether this proposal will address all of the existing problems in the benefits and tax credits systems. We urge the Government to tread carefully, postponing ... Continue Reading

HM Revenue & Customs has announced a change in its policy regarding business entertaining, in light of cases heard before the European Courts. Danfoss and AstraZeneca pursued the right to reclaim VAT when entertaining business customers from overseas, and were ultimately successful in the European Courts of Justice. It is important to note that the scope is limited to entertaining overseas customers, and most general entertaining costs will therefore remain 'blocked'. And where the costs ... Continue Reading

The Devil is in the detail as the government's 'simple' approach struggles with the intricacies of the tax and benefits systems The government's plans to cut Child Benefits for families where one parent/guardian is a Higher Rate Taxpayer are now struggling through the practical complexities. One key announcement is that, if someone is found to have claimed when they shouldn't have, then the excess Benefit will be 'clawed back' through the tax system. Practically, this means either through ... Continue Reading