27/01/2010, by Sarah Laing, Tax news - VAT & Excise Duties
From 1 April 2010, HMRC will apply new wrongdoing penalties relating to VAT and Excise Duty, where a person:issues an invoice that includes VAT which the person is not entitled to charge;handles goods on which Excise Duty has not been paid or deferred;uses a product in a way that means more Excise Duty should have been paid; orsupplies a product at a lower rate of Excise Duty knowing that it will be used in a way that means a higher rate of Excise Duty should be paid."Handling goods" means acquiring ... Continue Reading
27/01/2010, by Low Incomes Tax Reform Group, Tax article - General
Robin Williamson welcomes HMRC’s revised policy allowing a notional offset of the amount of tax credits that would have been due against overpaid credits on a change in household. Previous Practice and the Case for ChangeSometimes, tax credit claimants who form a couple or who become single, either because they separate or because one partner dies, are slow in reporting the change to HMRC. Yet in many cases, if they had acted promptly they would have continued to be entitled to tax credits, albeit ... Continue Reading
24/01/2010, by Mark McLaughlin CTA (Fellow) ATT TEP, Tax article - Business Tax
Mark McLaughlin CTA (Fellow) ATT TEP looks at the proposed amendment of the anti-avoidance rules on transactions in securities.IntroductionWhen it comes to HMRC proposals to simplify legislation, one might be forgiven for being a little apprehensive. The pension ‘simplification’ rules spring to mind, for example. However, if there is a part of the tax law where some clarity and certainty would be warmly welcomed, it is surely the anti-avoidance legislation on transactions in securities (TiS).HMRC ... Continue Reading
24/01/2010, by Julie Butler, FCA, Tax article - Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
Julie Butler considers whether the recent Inheritance Tax case concerning the Earl of Balfour directs more protection with regard to IHT relief for the mixed estate, or less. IntroductionThe judgement of the Earl of Balfour case was delivered on 14th May 2009. The case recorded a successful Business Property relief (BPR) claim for a mixed agricultural estate in Scotland. The First Tier Tax Tribunal (Special Commissioners) ruled that the business in question was not “wholly or mainly making or holding ... Continue Reading
24/01/2010, by Andrew Needham, Tax article - VAT & Excise Duties
Andrew Needham of VAT Specialists Ltd highlights some useful points for businesses with cashflow difficulties. IntroductionIn these difficult economic times many businesses are getting into financial difficulties and many are going into liquidation. The Government seems to be aware of these problems and in the 2008 pre-Budget Statement set up the Business Payment Support Service. With a single phone call businesses could defer tax payments, not just VAT but any Corporation Tax or other direct taxes ... Continue Reading
21/01/2010, by Low Incomes Tax Reform Group, Tax article - General
As the Government moves forward with plans to extend the system of direct payments, LITRG urges the various bodies involved to work together.What are Direct Payments?The direct payments system facilitates independent living by allowing individuals – such as elderly and disabled people – to organise and pay for their own care from a personal budget. But this means that they become ‘employers’ of their carers in the eyes of HMRC and are required to operate a payroll, among other obligations. ... Continue Reading
20/01/2010, by Low Incomes Tax Reform Group, Tax article - Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
John Whiting outlines LITRG’s campaign to rectify an injustice in the IHT Transferable Nil Rate Band rules where the first death occurred before March 1972.IntroductionIn 2008, the Government introduced a welcome Inheritance Tax relief. When a widow or widower (or bereaved civil partner) dies, their estate can benefit not only from their own tax-free band, but also so much of any tax-free band as remained unused when their late spouse or civil partner died.But quirks in some old rules mean this ... Continue Reading
17/01/2010, 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 business mileage for the use of an employee's own vehicle.Late Payment PenaltiesIn the 2009 Budget it was announced that penalties would in future be charged in respect of late paid monthly remittances of PAYE/NIC. The tax provisions are in Finance Act 2009 Sch 56 and there is as yet no specific NIC legislation (nor is NIC covered in the Finance Act provisions). There will be a Statutory Instrument mirroring the ... Continue Reading
17/01/2010, by HM Revenue & Customs, Tax article - General
HM Revenue & Customs provides advice on its facilities for tax agents in time for the Self Assessment filing deadline.IntroductionWith the 31 January deadline for Self Assessment rapidly approaching, Brian Redford, Deputy Director Intermediaries and External Communication, Business Customer Unit, HM Revenue & Customs (HMRC), highlights the following helpful hints for agents.1. Filing for Clients and When to be AuthorisedIf you are just filing a return on behalf of a client and use third party software, ... Continue Reading
17/01/2010, by Matthew Hutton MA, CTA (fellow), AIIT, TEP, Tax article - Business Tax
Matthew Hutton MA, CTA (fellow), AIIT, TEP highlights a selection of business tax planning points from recent conferences.TCGA 1992 s 169Q ElectionAndrew Burgess emphasised that we must understand the risks associated with the election under TCGA 1992 s 169Q (Reorganisations: disapplication of s 127), to disregard TCGA 1992 s 127 (Equation of original shares and new holding). Section 127 operates on a share-for-share exchange on a company takeover, so the new shares take the base value of the old ... Continue Reading
