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HMRC have issued Brief 16/10, which clarifies the new time-limits for assessments and claims introduced by Finance Act 2009, Sch. 39 with effect from 1 April 2010 in the case of capital gains tax, corporation tax, income tax, PAYE and VAT. The new time limits came into effect on 1 April 2010 for direct taxes. The normal time limits for these taxes have decreased from six years, or five years from the 31 January immediately following the tax year, to four years.The new time limits came into effect ... Continue Reading

The latest issue of the HMRC publication Working Together is now available. Topics covered include:progress of the new local Working Together model;new legislation to develop a standard compliance system;Shares and Assets Valuation changes;function of form R40;correction and amendment of SA tax returns and company tax returns; andfiling VAT returns online for clients from April 2010.Working Together issue 39 is available on the HMRC website at www.hmrc.gov.uk/agents/working-together-39.pdf. Continue Reading

The Chancellor of the Exchequer, George Osborne, has confirmed that the date of the second 2010 Budget is 22 June at 3.30pm.TaxationWeb.co.uk will once again provide full commentary on the announcements as soon as possible after the Budget speech.  Continue Reading

Matthew Hutton MA, CTA (fellow), AIIT, TEP highlights a selection of points from IBC's '101 Tax Planning Ideas' conference in London on 21 January 2010.  Dividend DepreciationsAdrian Shipwright commented that where a company pays a dividend its shares are usually less valuable following the payment.Thus ex div and cum div prices are different. A dividend received by one UK company from another UK company is not usually chargeable to Corporation Tax (although note the position of capital sums derived ... Continue Reading

Mark McLaughlin CTA (Fellow) ATT TEP offers some practical tips when preparing a Negligible Value Claim for Capital Gains Tax purposes.   IntroductionAn unfortunate effect of the recession has been an apparently increasing number of capital losses on assets. A negligible value claim (under TCGA 1992 s 24) is a useful mechanism to realise an allowable capital loss. In cases involving qualifying shares, the loss can be converted to an Income Tax loss and offset against general income (ITA 2007 ss ... Continue Reading

Andrew Needham of VAT Specialists Ltd looks at VAT issues affecting businesses trading in the EU.  IntroductionTrading in other Member States of the EU is an increasingly complicated area of VAT for businesses. It can sometimes result in the need to register for VAT in another EU Member State with increased administration and compliance costs.This article looks at the scope of possible business activities with other Member States, from basic supplies of goods to the more complex areas of triangulation, ... Continue Reading

James Bailey forewarns that an element of caution should be adopted when using the freely available guidance provided by HMRC.Guidance ManualsHM Revenue and Customs (HMRC) are responsible for administering a bewildering variety of taxes, and to help them in their task they have a set of “Guidance Manuals”. These can be found on HMRC’s website at: HMRC Manuals - A to Z, neatly arranged in alphabetical order. Those patient enough to count them, as I have just done, will find there are nearly ... Continue Reading

Jennifer Adams explores a long-standing Inheritance Tax (IHT) exemption.IntroductionThe next 50 days will keep financial journalists busy speculating as to what will remain from Alistair Darling’s last Finance Act and what will be repealed. We already know that an increase in the Capital Gains Tax charge on second homes is targeted and we can but hope that the lifetime exemption limit for Entrepreneurs' Relief will remain but somehow, from somewhere, billions of pounds needs to be raised.National ... Continue Reading

Andrew Needham of VAT Specialists Ltd reports on a recent VAT penalty case won by the taxpayer.Tribunal Discharges PenaltyIn a landmark decision, the Tribunal considered that the levying of a 5% penalty (totalling £131,881) as a consequence of a one-day delay in submitting a VAT return, was disproportionate to the offence and discharged the penalty.VAT Return and Payment were One Day LateThe taxpayer, Enersys Holdings UK Limited (Enersys) had agreed non-standard tax periods. The late payment in ... Continue Reading

Peter Arrowsmith FCA highlights a selection of NIC matters, and provides a timely reminder for employers about penalties for late payment of PAYE (including CIS) anc Class 1 NIC liabilities.New EC RegulationsThe 'new' Regulations (EC Regs 883/2004) at last come into effect.Apart from a 'short' secondment now constituting up to 24 months rather than 12 months as of today, remember also that the old ploy that where the employer does not have a place of business where the employee is performing the ... Continue Reading