21/02/2010, by Malcolm Finney, Tax article - Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
Malcolm Finney shows how to use Gift Relief to avoid paying Capital Gains Tax on gifts that you make to your family.IntroductionCapital Gains Tax (CGT) is payable on a capital gain arising on the disposal of most assets. A disposal includes a sale or a gift. Here we shall examine how to make use of Gift Relief to avoid CGT when making gifts to family members.Making a GiftThe problem in the case of a gift (other than an inter-spouse gift) is that the person making the disposal receives no monies out ... Continue Reading
21/02/2010, by Steve Allen, Tax article - VAT & Excise Duties
Steve Allen of VAT Advisers Ltd provides a VAT tip for charities raising funds via grants. IntroductionAlthough charities often rely on grant income in order to be able to fulfil their charitable aims, the fact that grants are not ‘consideration for a supply’ means they are a non-business income stream, and as such, none of the VAT incurred on related costs can be recovered. The lost input tax effectively reduces the grant by an equivalent amount, so any means of preventing that loss will restore ... Continue Reading
19/02/2010, by Low Incomes Tax Reform Group, Tax article - General
LITRG are concerned that HMRC use such misleading marketing messages to increase the take-up of Tax Credits that many who might qualify, including HMRC's more vulnerable customers, are put off.BackgroundHM Revenue & Customs (HMRC) are tasked with increasing the take-up of Tax Credits. While HMRC's marketing efforts do result in many taking up Tax Credits who might not otherwise have done so, there are still many falling through the net. HMRC repeatedly simplify their marketing of Tax Credits to such ... Continue Reading
19/02/2010, by Low Incomes Tax Reform Group, Tax news - Income Tax
HMRC's new IT system is continuing to generate 2010/11 PAYE code errors. Here HMRC explain the latest position to stakeholders.Background Given in HMRC's Letter of 19 February 2010HMRC's Individuals Customer Directorate writes: Last week I explained that we were completing our analysis to identify areas of potential discrepancy in the data held by our new National Insurance and PAYE Service (NPS). The discrepancies may have given rise to incorrect notices of coding and we are reviewing individual ... Continue Reading
17/02/2010, by Low Incomes Tax Reform Group, Tax article - General
On 5 April 2010 compulsory online filing of end of year returns will be extended to nearly all employers. Prepare for the deadline in advance to avoid late filing penalties. The Changes – from Paper to OnlineIn 2002, following a recommendation by Lord Carter in his 2001 Review of Payroll Services, a gradual process began to move all employers, depending on their staff numbers, away from paper end of year returns towards compulsory online filing.The tax year 2009-10 (ending on 5 April 2010) sees ... Continue Reading
16/02/2010, by Low Incomes Tax Reform Group, Tax article - General
TaxHelp for Older People warn of the possible tax implications of receiving ‘Direct Payments’ which allow individuals, including pensioners, to pay for their own care and home help. What are ‘Direct Payments’?You may be wondering what on Earth this heading means. We shall explain. As we get older, help around the house starts to become a desirable option and if money is tight, it is often the time to approach your local Social Services for help. If you are assessed as needing help and ... Continue Reading
14/02/2010, by Peter Arrowsmith FCA, Tax article - PAYE and Payroll Taxes, National Insurance, NICs
Peter Arrowsmith FCA outlines a selection of NIC matters, and offers a tip regarding the payment of voluntary Class 3 NIC contributions.Late Payment PenaltiesFurther to the news item in my January newsletter, the draft National Insurance Regulations in respect of late in-year payments were at last published on 29 January and are available at Penalties for Late Payment of Employer and Contractor PAYECaring Credits Replace Home Responsibilities ProtectionHome Responsibilities Protection (HRP) will ... Continue Reading
14/02/2010, by Ian Wright, Tax article - Business Tax
Ian Wright dissolves the myth of the ‘high risk’ EIS investment strategy and outlines how there really are benefits to be gained.IntroductionThe Enterprise Investment Scheme (EIS) is usually thought of as a very high risk entrepreneurial investment which men in shiny suits try to sell you with attractive promises of 20% tax relief and tax free capital gains. Whilst the immediate tax reliefs and future tax free capital gains seem appealing, quite a few EIS investments fail to deliver a return ... Continue Reading
14/02/2010, by Steve Allen, Tax article - VAT & Excise Duties
Steve Allen of VAT Advisers Ltd highlights an important VAT case for DIY claimants.IntroductionA recent VAT Tribunal case has reinforced the need for DIY claimants to ensure that suppliers charge them the correct rate of VAT on qualifying goods and services. In Michael Roy Culverwell (TC00222), the Appellant was charged standard-rated VAT on the supply and installation of doors and windows for his new home, which was completed in May 2008. The disputed VAT of £826.16 was incurred on two invoices ... Continue Reading
08/02/2010, by Low Incomes Tax Reform Group, Tax news - Income Tax
HMRC’s new IT system is generating 2010/11 PAYE code errors. Here LITRG highlights particular problems for pensioners and urges you to take extra care in checking notices this year. The 2009 PAYE System ‘Facelift’Last year, for the first time ever, HMRC joined together their many records for each individual employee and pensioner in one computer system. This is a very good thing for HMRC to have done, as it makes it much more likely that their work will be accurate in the future.However, ... Continue Reading
