18/09/2010, by Peter Arrowsmith FCA, Tax article - PAYE and Payroll Taxes, National Insurance, NICs
Peter Arrowsmith FCA highlights a selection of NIC matters, and provides a tip on the new 'NIC Holiday Relief'.NIC Holiday SchemeFurther information on the Regional Employer National Insurance contributions Holiday for New Businesses (and this is the first and last time that I shall give it its proper name) is now available at Regional Employer NICs Holiday for New Businesses and Employer NICs Holiday - An Aspect of PAYEThose wishing to apply (applications must be made and accepted by HM Revenue ... Continue Reading
18/09/2010, by Sarah Bradford, Tax article - Property Taxation
Sarah Bradford looks at the tax implications of taking lodgers into your home. IntroductionTaking in a lodger has distinct advantages financially, but can pose a problem for Capital Gains Tax purposes!Record numbers of cash-conscious homeowners looking for help to pay their bills may find the lure of a tax-free income offered by the Rent-a-Room Scheme attractive – but need to stop to think about the Capital Gains Tax (CGT) consequences of taking in lodgers.One website, spareroom.co.uk, has reported ... Continue Reading
18/09/2010, by Matthew Hutton MA, CTA (fellow), AIIT, TEP, Tax article - Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
In the second of a series of extracts from his eBook 'Hutton on Estate Planning' (3rd Edition), Matthew Hutton outlines some tax tips and traps in connection with Inheritance Tax (IHT) exemptions. The PrincipleIf a gift (or, technically, a ‘disposition’) is exempt when made, it does not matter, in IHT terms at least, that the donor dies within the following seven years – or, indeed, even a day later. Note, incidentally, that to be effective the gift must be ‘perfected’, that is if made ... Continue Reading
15/09/2010, by HM Revenue & Customs, Tax article - Business Tax
HM Revenue & Customs has published further details of the National Insurance Contributions Holiday, initially announced in the Emergency BudgetIntroductionAre you thinking of starting up a business or have you recently set up a company? If so, you could take advantage of a new government scheme, a National Insurance contributions (NICs) holiday, to encourage business start-ups in key UK regions. The ‘Regional Employer NICs Holiday for New Businesses’ offers substantial reductions in employer ... Continue Reading
11/09/2010, by Matthew Hutton MA, CTA (fellow), AIIT, TEP, Tax article - Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
In the first of a series of extracts from his eBook 'Hutton on Estate Planning' (3rd Edition), Matthew Hutton provides an overview of inheritance tax (IHT) and the subject of IHT mitigation. Overview of the Chapter - and the SubjectA Brief PerspectiveIn 1986 IHT replaced Capital Transfer Tax (CTT), which itself had taken the place of Estate Duty in 1975. Estate Duty was primarily a death duty, but also caught certain lifetime gifts made within seven years before death (as indeed does IHT). The ... Continue Reading
11/09/2010, by The Provincial Tax Practitioner, Tax article - General
The Provincial Practitioner, in his usual tongue-in-cheek style, laments ongoing problems with the CIS Scheme more than three years after its introduction. 6 April 2007 – a Change for the Worse? The new CIS scheme filled me with dismay because I knew exactly what practical problems it would subsequently pose. The mind of your typical salt of the earth subcontractor is often a dark and empty place, where the electrical activity fizzing between the synapses is frequently short-circuited by the ... Continue Reading
11/09/2010, by Steve Allen, Tax article - VAT & Excise Duties
Steve Allen of VAT Advisers Ltd highlights a further selection of recent VAT case decisions.Tribunal says Jersey VAT Structure was Not 'Abusive' and Halifax should Not ApplyThe Appellant was a well known UK debt finance business which had incorporated a wholly-owned subsidiary in Jersey to mitigate the effect of irrecoverable input tax incurred on advertising relating to exempt loans to UK customers.HMRC challenged the structure, arguing that the Appellant was providing the loan broking services, ... Continue Reading
10/09/2010, by Low Incomes Tax Reform Group, Tax article - Income Tax
LITRG endeavours to correct misunderstandings around the PAYE calculations furore with background to the short-term problem.Introduction LITRG is all for bringing HMRC to account when it has let down the low income population; but we are also clear that we want good and accurate information to be provided to those same people. With very little notice we provided short-term solutions to a short-term issue for the 45,000 people who could have been affected by the HMRC initial trial run. The background ... Continue Reading
07/09/2010, by Low Incomes Tax Reform Group, Tax article - Income Tax
Millions of PAYE taxpayers could be receiving HMRC calculations showing an underpayment or overpayment of tax for the last two years – LITRG provides guidance for recipients.IntroductionIn June 2009, HMRC changed the computer system by which PAYE is operated. Because the new system was not well enough checked before launch it has spewed out millions of incorrect PAYE notices (called ‘codings’) caused mostly by faulty data already present prior to launch.This same system is now going to reconcile ... Continue Reading
07/09/2010, by Lee Sharpe, Tax news - Income Tax
The news that millions of ordinary taxpayers will be receiving tax calculations from HM Revenue & Customs (HMRC) over the next few weeks and months has made national headlines over the last two or three days. Here's a quick guide on the issue and what to do if you receive a 'tax demand'.BackgroundMost professional advisers have been aware for a long time that HMRC were having significant problems with the implementation of their new 'Pay As You Earn' (PAYE) computer system. But the scale of the ... Continue Reading
