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LITRG highlights some important points to remember in the coming weeks. IntroductionRegular visitors to TaxationWeb might have been following our series of articles reminding you each month of tax, tax credits, and some welfare benefits matters to consider. Here are some for September and looking ahead to October.  Tax and Self-AssessmentGet to work on your 2009/10 tax return – paper filers only have two months left!Those sending in a 2009/10 paper Self-Assessment return have to do so by 31 October ... Continue Reading

Steve Allen of VAT Advisers Ltd highlights a selection of recent VAT case decisions..High Court says Structure was 'Abusive' and Redefines Supplies for Halifax Principle The Appellant company is a profit-making body running a sports club. Being profit-making, it makes standard-rated supplies to its members. The Appellant previously had a non-profit making body so that it could make exempt supplies to its members and remain competitive with local competitors. However, when the ‘commercial influence’ ... Continue Reading

Mark McLaughlin looks at a recent tax case on the cost of repairs to an old and dilapidated property. IntroductionDistinguishing between repairs expenditure and capital costs is often difficult. The distinction can become even more difficult in the case of an old, dilapidated building.Where there’s a Will(s)…In Christopher Wills v Revenue & Customs [2010] UKFTT 174 (TC), the taxpayer appealed when HMRC disallowed a claim for £43,665 in respect of repairs to an outbuilding attached to a rental ... Continue Reading

Peter Arrowsmith FCA comments on the NIC Holiday Scheme announced in the Budget on 22 June 2010.IntroductionAt lunchtime of 27 August 2010, HM Revenue and Customs made available more details of the NIC Holiday scheme announced on 22 June. In particular it WILL commence on 6 September (that's a week on Monday). Please accept my apologies for any reduction, in what follows, in the usual high level of spelling and grammatical accuracy.There will be further guidance and forms made available next week, ... Continue Reading

Mark McLaughlin outlines the Finance Act 2010 provisions which provide for potential penalties of 200%  IntroductionThe first Finance Act of 2010 introduced a new penalty regime in respect of undisclosed offshore accounts, from a date to be appointed by Treasury Order. The publicity generated by this legislation resulted from a 'headline' maximum penalty rate of 200%. Many individuals, particular those with a foreign connection, have offshore accounts these days.In what Circumstances can the Enhanced ... Continue Reading

The taxation of trusts is complex. However, Malcolm Finney points out that trusts do offer an attractive vehicle which can be used for family tax planning purposes. Background Perhaps one of their main attractions (the Discretionary Trust in particular) is that future unforeseen changes, be they financial or not, can be taken into account at that time by the trustees. For example, a father may create a Discretionary Trust for his four children at a time when they are all minors; it may ... Continue Reading

Are you a property investor or a developer? It can sometimes be a fine line that distinguishes the two but getting it wrong has important tax implications! Sarah Bradford explains, in her article for Tax Insider Lite.IntroductionAs programmes like Property Ladder attest, many people are keen to invest in property and are confident that they can make a sizeable profit by 'doing a property up' and selling it on.From a tax perspective, difficulties may arise in that it is not always clear-cut whether ... Continue Reading

LITRG reports on HMRC’s response to the recent consultation on the impact on minority groups of changing their Enquiry Centre service, published yesterday and the further mitigating actions promised. IntroductionIn times of such austerity, it comes as no surprise that HMRC are going ahead with reductions to their Enquiry Centre opening hours. Our response to HMRC’s impact assessment consultation as regards the proposed further changes was outlined in our recent article ‘The changing face of ... Continue Reading

From the 6 April after they turn 16, children have to re-register R85s otherwise (often without any warning from the bank or building society) their savings will start being taxed. IntroductionIf you have savings and your total income does not exceed your annual personal allowance (the basic allowance being £6,475 for the 2010/11 tax year), you can register with the bank or building society to have interest added to your account without tax deducted.You register at the bank or building society using ... Continue Reading

HM Revenue & Customs has warned that there is currently a delay of between six and eight weeks, when they are notified of an error in a VAT Return by a business, and have to correct the mistake.HM Revenue & Customs has pointed out that, in some cases, (generally for 'smaller' errors), the business is able itself to correct the errors on its next VAT return - i.e., make a corresponding adjustment in the next VAT return instead of asking HM Revenue & Customs to process the correction separately. Apparently, ... Continue Reading