16/05/2010, by Julie Butler, FCA, Tax article - Business Tax
Julie Butler reports on a recent case involving a tax relief claim for work clothes. IntroductionThere is a long running debate – should clothes worn at work be allowed against a tax bill? The recent case of Sian Williams and the tax tribunal highlighted this point. There are a number of angles here. The employed question versus the self-employed, required versus Health & Safety and exactly what is "exclusively"?Claiming Clothing Costs when EmployedThe employed have to pass the HMRC test of “wholly, ... Continue Reading
16/05/2010, by Andrew Needham, Tax article - VAT & Excise Duties
Andrew Needham of VAT Specialists Ltd looks at VAT recovery issues in respect of motor vehicles. IntroductionThe recovery of VAT on motoring expenses continues to cause confusion to businesses and advisers alike, so in this article I am taking a look at the different methods of recovering VAT on road fuel and the advantages of each, as well as on the purchase and leasing of cars. The basic systems for recovering VAT on motoring expenses are:claim all the VAT back on road fuel and pay the Motoring ... Continue Reading
13/05/2010, by Low Incomes Tax Reform Group, Tax article - General
LITRG argues for a comprehensive review of travel expenses - a particularly difficult area for the low-paid due to tax, National Insurance, National Minimum Wage and means-tested benefits interactions. National Minimum Wage consultationEarlier this year, the government launched a consultation ‘National Minimum Wage Workers – Travel and Subsistence Expenses Schemes’. This seeks to introduce from 1 October 2010 a change in the National Minimum Wage (NMW) regulations to exclude travel and ... Continue Reading
12/05/2010, by Low Incomes Tax Reform Group, Tax news - Income Tax
Increasing tax personal allowances has featured in Liberal Democrat/Conservative coalition talks. But because of complex tax/benefit interfaces, LITRG warns that such a change is not straightforward in its impact.A simple change?The most straightforward tax change to help people on low incomes is to increase personal tax allowances, but even such a change has wider ramifications. This is because any change to the basic personal allowance (currently £6,475 or £124.52 per week) can have different ... Continue Reading
09/05/2010, by Mark McLaughlin CTA (Fellow) ATT TEP, Tax article - General
Mark McLaughlin CTA (Fellow) ATT TEP warns that achieving finality following the submission of self-assessments can be difficult. IntroductionTaxpayers understandably want certainty about their tax affairs, and demand finality when submitting their tax returns, that HM Revenue & Customs (HMRC) will be unable to make a ‘discovery’ outside the normal enquiry window. Unfortunately, there is invariably uncertainty when submitting a tax return about whether disclosures in it (normally in the ‘white ... Continue Reading
09/05/2010, by Julie Butler, FCA, Tax article - Business Tax
Julie Butler looks at the recent increase in Entrepreneurs' Relief, and outlines potential alternative forms of CGT relief for businesses.Introduction - Entrepreneurs' ReliefEntrepreneurs’ Relief (ER) was introduced by a “Darling U-urn” as a result of resistance to the removal of Business Asset Taper Relief (BATR) from 6 April 2008. The result was to deliver an effective 10% rate for up to the first £1 million of relevant 'lifetime capital gains'. From 6 April 2010 that limit has increased ... Continue Reading
09/05/2010, by Steve Allen, Tax article - VAT & Excise Duties
Steve Allen of VAT Advisers Ltd highlights a further selection of recent VAT cases.Tribunal says Golfing Tuition from a Company is Not ExemptThe Appellant was a three-way partnership comprising a golf professional, his wife, and their related limited company. HMRC accepted that golfing tuition supplied by the golf professional as a partner was exempt, but said that tuition supplied by him as director of the limited company was standard-rated. HMRC also said that tuition supplied by a partnership ... Continue Reading
04/05/2010, by Low Incomes Tax Reform Group, Tax article - General
Approaching a General Election, taxes and state benefits are often in the media. But while speculating about the future, don’t forget to consider actions you might need to take now. IntroductionWe are of course now in a new tax year, but we cannot quite yet put 2009/10 behind us. To help you think about the things you might need to consider, we give some pointers below. These cover tax, National Insurance contributions, tax credits and certain other benefits. Tax2010/11 PAYE Codes – ... Continue Reading
03/05/2010, by BKL, Tax article - General
BKL Tax comments on a recent change to HMRC guidance regarding requests for private bank account information. IntroductionFor as long as HM Revenue & Customs (HMRC) have had powers to require production of documents there have been arguments about what they are entitled to see. In particular, views have differed on the circumstances in which private current accounts are legitimately open for HMRC inspection, ranging from "Never - they're private and nothing to do with my tax" to "Always - they might ... Continue Reading
03/05/2010, by James Bailey, Tax article - General
James Bailey points out that free tax advice is not always the best advice.IntroductionThis article is being written by request – apparently from time to time people tell the Tax Insider office that all the effort that goes into offering them tax advice is a waste of time, and tax consultants are also unnecessary, because you can simply telephone HM Revenue & Customs (HMRC) and get free advice. However, free advice is not always the best advice.Making Use of HMRC ServicesI am a great believer in ... Continue Reading
