Enter Your E-mail

Brian Redford explains how listening to HMRC’s first ‘Super Podcast’ can help businesses prepare for big changes to the way they file and pay their taxes. Super PodcastAt HM Revenue & Customs (HMRC) we have launched our first ever ‘Super Podcast’, to alert businesses to major changes in the way they file and pay PAYE, corporation tax and VAT.We’ve called it a ‘Super Podcast’ because it provides an overview of four key changes which affect the way that VAT-registered traders, employers, ... Continue Reading

Mark McLaughlin CTA (Fellow) ATT TEP looks at the recent HMRC consultation document on the simplification of the associated companies rules for the purposes of the small companies' rate of corporation tax.Introduction  When dealing with small and owner-managed companies, it can often be difficult to ascertain the number of associated companies. For small companies' relief purposes, the lower (£300,000) and upper (£1.5 million) ‘relevant maximum amounts’ are divided between active associated ... Continue Reading

Malcolm Finney points out that trusts can still be highly effective mechanisms enabling long term provision for family members.Onshore Versus OffshoreTrusts may be set up within the UK (i.e., are resident in the UK) or “offshore” typically in low/nil tax areas (e.g., Bermuda, British Virgin Islands). Generally speaking, offshore trusts are likely to be inappropriate for a UK domiciled and resident individual (broadly, someone born and raised in the UK), although of immense benefit for a non-UK ... Continue Reading

Steve Allen of VAT Advisers Ltd highlights a selection of recent VAT cases.  High Court says Tribunal should Not Ignore Contracts when Deciding if Taxpayer is acting as Agent or Principal This dispute involved the supply of loft conversions, and whether the Appellant, a limited company, was supplying conversions as principal, or acting as agent on behalf of three other companies. The Appellant argued VAT was only due on its project management services, not the full consideration paid by customers. ... Continue Reading

There were few surprises for those on low incomes in this Budget. The real meat will be in Budget 2010 – Part 2, expected to be in June. IntroductionThis is the first of at least two budgets in 2010. First LITRG look at the changes that will happen from 6 April.We can analyse today’s Budget in three ways for those on low incomes:Changes from 6 April which we already knew aboutThings which change in 2010-11 newly announced todayProposed future changesPre-announced changesTaxes/NICTax rates and ... Continue Reading

LITRG issues an urgent reminder that time limits for some taxpayers to reclaim overpaid tax are about to be cut from nearly six years to only four years. IntroductionCurrently claims for repayment of overpaid tax may be made for five years and ten months following the tax year to which the repayment relates. 31 January 2010 was therefore the last day for making any such claims for 2003/04 – so that year, and earlier years, are now generally closed. Exceptionally, a concession allows repayments ... Continue Reading

Looking ahead to 6 April 2010, Julie Butler asks “What tax planning is there around the 50% rate of income tax?”IntroductionAn interesting set of choices will arise depending on whether someone is a higher rate taxpayer or even a new “super higher rate” taxpayer from 2011. From 2010, the owner of a small business who earns over £100,000 will see his or her personal allowance being tapered away until he or she reaches £112,950, when the personal allowance will disappear entirely. The rate ... Continue Reading

Mark McLaughlin CTA (Fellow) ATT TEP considers some tax effects of the Companies Act 2006 procedure for reducing share capital. IntroductionThe ability of companies to reduce share capital has been simplified following changes introduced in Companies Act 2006 from 1 October 2008. The capital reduction procedure (in CA 2006 ss 641-657) was discussed in my article Turning Extra-Stautory Concession C16 into Law, in the context of winding up companies using Extra Statutory Concession C16. As mentioned ... Continue Reading

Brian Redford, Deputy Director Intermediaries and External Communication, Business Customer Unit, HM Revenue & Customs (HMRC) outlines key changes to PAYE filing and urges employers to get ready for them.IntroductionPAYE is changing this spring, so if you are an employer you need to be aware of the changes and prepare for them.Online Filing is Required in Almost All CasesBy 19 May, all employers, including those with fewer than 50 staff, must file their Employer Annual Return (P35 and P14s) online. ... Continue Reading

Peter Arrowsmith FCA highlights a selection of NIC matters, and offers a tip concerning students in employment during their vacations.Childcare Relief RestrictionsYou may well recall a series of press reports last autumn about future restrictions on tax relief for childcare so that relief is targeted towards basic rate taxpayers. The proposals were watered down to the position as stated after an outcry about the original announcement. HM Revenue and Customs has now published further details, though ... Continue Reading