03/05/2010, by Steve Allen, Tax article - VAT & Excise Duties
Steve Allen of VAT Advisers Ltd highlights a selection of recent VAT cases.Tribunal says Information Security Body can be Exempt This case considered whether the Appellant, a body which represents information security professionals, could qualify for exemption as a not-for-profit professional body.The Tribunal established that there was no written examination required for entry into the profession (entry was by oral exam to test practical application of knowledge), and that information security ... Continue Reading
29/04/2010, by Low Incomes Tax Reform Group, Tax article - General
LITRG warn of the potential hazards when sacrificing salary for childcare vouchers where you are also claiming tax credits, and stress the importance of doing the sums. Tax relief on childcare vouchersAt the end of 2009, campaigns were launched to save the tax advantages of childcare voucher schemes. Comments which described the proposed withdrawal of tax relief on them as an attack on “hard working families” were misguided as many families are in fact better off declining any employer offers ... Continue Reading
26/04/2010, by Low Incomes Tax Reform Group, Tax article - General
LITRG takes a look at student loan repayments including the basics, some less well known facts and a few final notes of caution. Student loans and the tax system – the linkAlthough student loans are administered by the Student Loans Company (SLC), the tax system is used as the main means of collecting repayments on ‘income-contingent’ loans. Repayments are made either via employers through Pay As You Earn (‘PAYE’) or, in some cases (for instance if you are self-employed), via Self Assessment ... Continue Reading
26/04/2010, by Stephen Dunham, Tax article - Business Tax
Stephen Dunham of Dunham Consulting looks at ways for businesses to strike back against the trend of increasing taxes through capital allowances.IntroductionWith HM Revenue & Customs (HMRC) taking an ever-increasing hardline and aggressive approach in their attempts to increase the tax take from both corporates and individuals alike, now more than ever is the time to ensure the maximum level of capital allowances is being identified and utilised to assist in minimising tax liabilities and paying ... Continue Reading
26/04/2010, by Mark McLaughlin CTA (Fellow) ATT TEP, Tax article - Business Tax
Mark McLaughlin CTA (Fellow) ATT TEP outlines some potential pitfalls in management charges between related businesses. IntroductionThe use of management charges between related businesses is a relatively popular and well-known tax planning technique. Management charges are often considered if, for example, companies are ‘associated’ for small companies’ relief purposes to minimise tax liabilities by ensuring that more profits are subject to a lower rate of corporation tax overall. There is ... Continue Reading
26/04/2010, by Steve Allen, Tax article - VAT & Excise Duties
Steve Allen of VAT Advisers Ltd provides a VAT tip for charities.IntroductionVAT is a perennial problem for charities, as it can often be a non-recoverable cost. As such, it pays to make sure that zero-rated VAT relief is obtained wherever possible, and one common example is the cost of advertising. In this article, we take a quick look at the conditions under which a charity can get these costs zero-rated.First of all, zero-rated relief on advertising is available to ALL charities, regardless of ... Continue Reading
21/04/2010, by Low Incomes Tax Reform Group, Tax article - General
HMRC can help eligible customers by visiting them at home. LITRG looks at who is eligible and how the service is accessed.Getting help from HMRC – the problemsLITRG has commented many times over the years on the difficulties of contacting HMRC by telephone for advice (and receiving correct information), the introduction of an appointments system in Enquiry Centres to the detriment of customer service, and the increased inaccessibility of face-to-face contact with HMRC through closure and reduced ... Continue Reading
18/04/2010, by Sarah Bradford, Tax article - General
Sarah Bradford reveals who the winners and losers are in the Stamp Duty Land Tax stakes following the recent Budget announcement.The Winners......First Time Buyers! The Chancellor announced that legislation would be included in the 2010 Finance Bill to raise the Stamp Duty Land Tax (SDLT) threshold for first-time buyers to £250,000. The revised threshold applies to purchases of residential property where the purchaser(s) are first-time buyers who intend to occupy the property as their main home. ... Continue Reading
18/04/2010, by Mark McLaughlin CTA (Fellow) ATT TEP, Tax article - Business Tax
Mark McLaughlin CTA (Fellow) ATT TEP highlights some useful help in determining whether an individual is employed or self-employed. IntroductionThe issue of whether a worker is employed or self-employed is often unclear. This uncertainty has resulted in a number of Court cases over the years. From those cases various indicators have been established, pointing towards either a contract of service (employment) or a contract for services (self-employment). Treating a worker’s employment status correctly ... Continue Reading
18/04/2010, by Steve Allen, Tax article - VAT & Excise Duties
Steve Allen of VAT Advisers Ltd outlines the New VAT Penalty Regime.IntroductionFrom 1 April 2010, there is a new penalty regime in place for failing to register for VAT on time. Under Finance Act 2008 Schedule 41, the new penalty will be behaviour-based in line with the cross-tax penalties that were introduced from 1 April 2009 for ‘inaccuracies’ on VAT and other tax returns. The penalty bands will have maximum and minimum limits, with potential mitigation available depending on the degree of ... Continue Reading
