13/04/2010, by Low Incomes Tax Reform Group, Tax article - Income Tax
LITRG and TaxHelp for Older People (‘TOP’) issue a reminder to pensioners to check their tax codes for 2010/11, warning of particular problems caused by HMRC’s new computer system.IntroductionPaying tax via the Pay As You Earn system (‘PAYE’) works reasonably well for the majority of taxpayers. Most of your working life as an employee you will have had tax deducted by your employer through PAYE and always been square with the tax people by the end of the year. But things change when ... Continue Reading
11/04/2010, by Peter Arrowsmith FCA, Tax article - PAYE and Payroll Taxes, National Insurance, NICs
Peter Arrowsmith FCA highlights a selection of NIC matters, including a significant change in the UK Social Security system commencing from 6 April 2010. NIC in EuropeHM Revenue and Customs has at last published an outline of the new rules that will take effect on Saturday, 1 May 2010 - see National Insurance Contributions: New Rules for Workers Moving Around the EU on or after 11 May 2010 and their Employers.Further, in readiness for these new rules, the Recovery of Social Security Contributions ... Continue Reading
11/04/2010, by Sarah Bradford, Tax article - General
Sarah Bradford explains how the Capital Gains Tax legislation provides tax relief for assets that have become worthless - and may even provide Income Tax relief in some cases.Negligible Value ClaimThe relief, known as a negligible value claim, is available for assets that have been or have become of negligible value. For these purposes, an asset is regarded as being of negligible value if it is worth next to nothing.Essentially, relief is given by allowing a taxpayer to make a claim to be treated ... Continue Reading
11/04/2010, by Steve Allen, Tax article - VAT & Excise Duties
Steve Allen of VAT Advisers Ltd highlights an important change in the treatment of VAT payments. IntroductionHMRC have recently put an announcement on their website which says that, from 1 April 2010, there will be an important change in the Department’s definition of when a VAT cheque payment by post will be treated as ‘received’.When is the Payment 'Received'?From that date, all such VAT cheque payments will be treated by HMRC as being ‘received’ on the date that cleared funds reach HMRC’s ... Continue Reading
06/04/2010, by Low Incomes Tax Reform Group, Tax news - HMRC Administration, Practice and Methods
LITRG explains Civil Service Purdah which sometimes seems to send government departments into paralysis as soon as a General Election is announced, potentially having a detrimental effect on the customer.What is “Purdah”?“Purdah” in the Civil Service is the period of days between the announcement of the General Election and the holding of it. There are a set of conventions which apply to government departments in this time window. These are overseen by the Cabinet Office.In broad terms the ... Continue Reading
04/04/2010, by BKL, Tax article - Income Tax
BKL Tax highlights a recent tribunal case concerning the application of PAYE and the incidence of Income Tax when an insuffient amount is deducted.IntroductionThe First-Tier Tribunal case of Burton v HMRC [2009] TC 00263 is a useful reminder of what happens when PAYE goes wrong. Mr Burton was an employee. He found that the tax deducted by his employer was less than the tax payable on his income. He was upset that HMRC were asking him to pay the difference.The Rules for PAYEThe basic rule is of course ... Continue Reading
04/04/2010, by Sarah Bradford, Tax article - General
Sarah Bradford highlights potential benefits and pitfalls of salary sacrifice arrangements.IntroductionAlthough as a general rule an employee is taxed on non-cash remuneration such as benefits in kind, the tax legislation contains a number of exemptions that make it possible to provide certain benefits free of tax and National Insurance contributions. However, a benefit is only worthwhile if the employee actually wants to receive it and not all employees will value the same non-cash benefits.The ... Continue Reading
04/04/2010, by Steve Allen, Tax article - VAT & Excise Duties
Steve Allen of VAT Advisers Ltd highlights a further selection of recent VAT cases.Tribunal Says New Building Linked to Care Home was Not Eligible for Zero-RatingThis case concerned a newly-constructed building adjacent to a residential home intended for use solely for a residential purpose. The first issue was whether the supplies related to the construction of a zero-rated building. In deciding whether the building was a standard-rated extension, the Tribunal found that it was similar in appearance ... Continue Reading
31/03/2010, by Taxbriefs Financial Publishing, Tax news - Budgets and Autumn Statements
This summary has been prepared by Taxbriefs Financial Publishing and is for general information only. The proposals are in any event subject to amendment before the Finance Act is passed. It is recommended you seek competent professional advice before taking any action on the basis of the contents of this publication.
With the country likely to go to the polls on 6 May, Mr Darling’s third Budget was predictably as much a political exercise as a conventional set of announcements. While many ... Continue Reading
29/03/2010, by Low Incomes Tax Reform Group, Tax news - Income Tax
LITRG sets out its views on HMRC’s recent offshore tax evasion consultation and the subsequent Budget announcement to increase the penalties for overseas non-compliance. Introduction Whilst acknowledging that overseas tax matters can be complicated, a recent HMRC consultation suggested that anyone getting them wrong should be penalised as if they had deliberately set out to commit tax fraud. Having expressed significant reservations about this principle and the potential impact of the proposals ... Continue Reading
