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Steve Allen of VAT Advisers Ltd highlights a further selection of recent VAT cases.Tribunal says HMRC's Failure to Revoke Special Method Means it has been effectively 'Allowed' and 'Approved'This case concerns the partial exemption implications of a retailer, who, in addition to a taxable main activity of selling furniture, also generates regular exempt commission income from selling related insurance (i.e., anti-stain insurance for sofas, and personal protection insurance for customers using credit ... Continue Reading

LITRG welcomes a DWP initiative to cut benefits claimants’ costs when calling their helplines and asks if HMRC will follow suit.IntroductionCommunicating with the Department for Work and Pensions (‘DWP’) is generally on 0800 numbers – a free call on a landline but expensive on a mobile, as was pointed out by the Social Security Advisory Committee in a recent report, entitled Telephony in DWP and HMRC: Call Costs and Equality of Customer Access. Currently 12% of UK households do not have a ... Continue Reading

LITRG concludes from a report out today, by the National Audit Office on how HMRC handles telephone enquiries, that customers are at risk due to poor service.IntroductionHMRC’s inability to deal efficiently with telephone callers is putting at risk not only its own reputation, but also the well-being of its low-income customers.  This is the clear conclusion which can be drawn from a report published today by the National Audit Office. (NAO)In the many reports LITRG has published over the years ... Continue Reading

The Low Incomes Tax Reform Group warns taxpayers to make sure that they have HM Revenue & Customs' latest bank details when paying their tax bills.IntroductionFor taxpayers in self assessment, 31 January is a key deadline.  Most electronic tax returns for the year to 5 April 2009 must be filed by 31 January 2010 and you need to settle up what you owe under self assessment for the year by that date.    You might also have to make a payment on account towards your 2009/10 liability.  The useful ... Continue Reading

LITRG issues a timely reminder that pensioners on low incomes could be eligible for a free “tax health” check-up from TaxHelp for Older People (TOP).IntroductionAround this time of year notices of coding will start to go out from HMRC for the 2010-11 tax year. Some pensioners who have a number of pension sources struggle to understand how different coding notices relate to each other. It may be time to give TOP a ring (and if you speak to Paddy Millard congratulate him on his MBE).Many pensioners ... Continue Reading

Mark McLaughlin CTA (Fellow) ATT TEP considers whether there is any scope for flexibility in the allocation of partnership profit shares.IntroductionRetrospective tax planning would be a wonderful thing in many cases. For example, it would potentially be very useful if partnership profit shares could be adjusted after the year end based on the personal circumstances of the individual partners, particularly in the context of partnerships involving family members.However, is retrospective tax planning ... Continue Reading

Malcolm Gunn outlines the choices available for non-domiciliaries in respect of capital losses realised on foreign assets.IntroductionHMRC is now offering a choice in relation to losses realised by non-domiciliaries on foreign assets. Up to April 2008, anyone claiming not to be domiciled in the United Kingdom could not get any relief at all for losses on the disposal of foreign assets. The losses were simply not allowable in any way at all.You Now Have a Choice!Now, all this has changed. From 6 April ... Continue Reading

Brian Redford, Deputy Director Intermediaries and External Communication, Business Customer Unit, HM Revenue & Customs reports on HMRC’s drive to make letters to customers simpler and clearer.IntroductionWe know that receiving letters from the tax man can sometimes be an intimidating experience for taxpayers. Our customers told us that the letters we wrote when we check tax returns were unclear or contained jargon. We are committed to improving customers’ experience of the UK tax system and reducing ... Continue Reading

Steve Allen of VAT Advisers Ltd highlights a selection of recent VAT cases.Tribunal Allows Partial Recovery of pre-Registration Input Tax incurred on the Construction of New HomesThis case concerns an individual who conducted building operations for two houses behind his own residence, and leased out both after completion (exempt supplies). During the development, in order to recover VAT on building materials incurred in the course of construction, his accountant advised him to form a company that ... Continue Reading

HMRC have issued Brief 77/09, in which they set out a revised view on how the qualifying condition for Enterprise Investment Scheme (EIS) relief contained in ITA 2007, s. 183 (the issuing company to carry on the qualifying business activity requirement) should be applied.HMRC consider that the relevant legislation at s. 183 has the effect of disqualifying a company where the relevant trade, preparation work or research and development, is carried on by the company in partnership or by a limited ... Continue Reading