07/02/2010, by Matthew Hutton MA, CTA (fellow), AIIT, TEP, Tax article - Business Tax
Matthew Hutton MA, CTA (fellow), AIIT, TEP highlights HMRC's current thinking on what constitutes a 'business' for tax purposes. ContextPrevious items in Monthly Tax Review have explored the possibilities of using a partnership as an alternative to a trusts structure, given the limitations imposed by FA 2006.An article by Marc Selby in Tax Advisor explores the requirement that, to constitute a partnership at all, the partners must carry on a business with a view to profit. The article starts by reviewing ... Continue Reading
07/02/2010, by Julie Butler, FCA, Tax article - Business Tax
Julie Butler asks whether a business person can obtain tax relief on sponsorship and general networkingIntroductionIn the recent recession it might seem “corporate hospitality” is a dirty word but businesses need to grow. Can sponsorship be tax allowable?The recent McQueen v R & C Commrs [2007] Sp C 601 case has resulted in a helpful and favourable result for those involved in commercial sponsorship of competitors of sports activities. In McQueen, it was shown that the marketing advantage was ... Continue Reading
07/02/2010, by Andrew Needham, Tax article - VAT & Excise Duties
Andrew Needham reports on some important recent VAT changes.Introduction From 1 January 2010 there are new rules for the place of supply of services, new reporting requirements for EC Sales Lists (‘ESLs’) and a simplified method for reclaiming VAT incurred in other EU Member States.New Rules - Place of SupplyUp to 1 January 2010, the basic rule for the place of supply of services was that they were supplied in the country where the supplier belonged. From 1 January 2010 the basic rule for business ... Continue Reading
05/02/2010, by Low Incomes Tax Reform Group, Tax news - HMRC Administration, Practice and Methods
LITRG has joined forces with a group of charities, led by Citizens Advice, to challenge the Government over £16 billion of unclaimed benefits – including Tax Credits. People are Missing Out on Valuable EntitlementsIn these hard times it is essential that those with the greatest need should claim what they are entitled to. Part of LITRG’s work is to identify where taxpayers and potential Tax Credits claimants miss out on claims or entitlements. This can be for a number of reasons, including: ... Continue Reading
03/02/2010, by Low Incomes Tax Reform Group, Tax article - General
Many would assume that February is a quieter month in the tax world after the January tax return rush, but there are a number of things to watch out for. Monthly Reminders – the LatestEach month, LITRG aims to write about relevant and upcoming issues for tax, tax credits and some related benefits. Here we look at points to consider in February – perhaps not such a quiet time as one might imagine. Useful links to further information are given at the end.TaxWas your Tax Return Late or have HMRC ... Continue Reading
01/02/2010, by Low Incomes Tax Reform Group, Tax news - Income Tax
LITRG explains problems reaching HMRC’s helplines in the run up to last weekend’s Self Assessment deadline for online tax returns, suggesting that penalties could be challenged where help was lacking. Another Bumper YearHMRC have reported another record-breaking year for Self Assessment online filing after counting up the tax returns for 2008-09 which should have been completed yesterday. Over 6.4million people have filed online this year – an increase of 12% on 2007-08.It cannot have come ... Continue Reading
01/02/2010, by Low Incomes Tax Reform Group, Tax article - General
LITRG explains tax and tax credits issues which may confront the increasing numbers of people taking part-time employment. Changes in Working PatternsThe economic climate remains difficult and recent official figures show that more people are turning to part-time work. This could be by choice (such as parents returning to work) or out of necessity from being unable to find full-time employment. Employers struggling to keep businesses afloat may also have been forced to ask employees to work ... Continue Reading
31/01/2010, by James Bailey, Tax article - Business Tax
James Bailey reveals that there may be a small tax loophole which will enable one of the tax reliefs associated with Furnished Holiday Accommodation to persist after the Pre-Budget Report's intended date of 5 April 2010.Furnished Holiday Accommodation Tax BreaksThere are several tax breaks associated with Furnished Holiday Accommodation. Losses on the lettings can be set off against any other income (whereas losses on any other lettings can only be set against other letting profits in the same or ... Continue Reading
31/01/2010, by Mark McLaughlin CTA (Fellow) ATT TEP, Tax article - Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
Mark McLaughlin CTA (Fellow) ATT TEP points out when living together could beat getting married, when it comes to Inheritance Tax. The Transferable Nil Rate BandThe introduction of the Inheritance Tax (IHT) Transferable Nil Rate Band facility in Finance Act 2008 has made life much easier for married couples (and civil partners) in terms of enabling the Nil Rate Band to be utilised on the first death.In certain circumstances, up to four Nil Rate Bands may be available. For example, a co-habiting couple ... Continue Reading
28/01/2010, by Low Incomes Tax Reform Group, Tax news - Income Tax
LITRG outlines a new facility for employed student loan borrowers to opt out of repaying through PAYE in favour of a direct debit as they get close to full repayment.Student Loans and the PAYE ProcessThe income-contingent student loans scheme was introduced from the autumn of 1998. Borrowers normally start making repayments from 6 April after they have completed or left their course as long as their annual income is £15,000 or more. Employed borrowers have student loan repayments deducted directly ... Continue Reading
