Enter Your E-mail

James Bailey offers some tax tips for individuals who have moved to a new home, but are unable to sell their previous one.  IntroductionIn the current housing market, many people want to buy a new home but are unable to sell their old one at the right price. If they decide to let the old property out, they have joined the growing band of “accidental landlords”.Interest on LoansYou cannot claim tax relief for the interest on a loan to buy a property you live in, but once you let it out, the interest ... Continue Reading

Mark McLaughlin CTA (Fellow) ATT TEP looks at a recent case which considered whether the use of an inaccurate property valuation in an Inheritance Tax return was negligent. Property ValuationThe new penalty regime for inaccuracies in tax returns, etc., has arguably increased the stakes and made it even more important that all possible steps are taken to ensure tax returns are complete and correct. Incorrect tax returns resulting from careless (previously negligent) behaviour are subject to penalties ... Continue Reading

LITRG express concern that HMRC’s proposals to tackle employment status fraud in the construction industry will penalise the low-paid unrepresented worker more than the contractor or the Exchequer.Introduction: Generally, LITRG share HMRC’s distaste for the practice of ‘dressing up’ an employment relationship as one of self-employment in order to take advantage of more favourable tax treatment. While the engager may avoid or postpone payment of tax and NICs, the low-paid worker (who often ... Continue Reading

Brian Redford, Director of HM Revenue & Customs’ (HMRC's) Agents and Employers Service Improvement Team (AESIT), explains the benefits of HMRC’s Budget Payment Plan. Introduction to the Budget Payment PlanThis time of year is all about countdowns – retailers and the media seem to start counting down the number of days to Christmas earlier and earlier. On top of that there’s the countdown until the deadline for filing tax returns online. From the end of October there are just three months ... Continue Reading

Sarah Bradford looks at the conditions for the special tax treatment applying to furnished holiday lettings, and warns that time is running out to make use of the potential advantages.  IntroductionBuried deep in the Budget Supplementary Documents is an announcement that the Government has decided that it should repeal the tax rules applying to furnished holiday lettings from 2010-11. This offers only a limited time to make the most of the tax advantages that furnished holiday lettings have over ... Continue Reading

Freelance journalist Nick Morgan, author of 'Tax Investigation For Dummies' considers whether taxpayers subjected to an HMRC enquiry should apply to the Tax Tribunal for closure.  Can I Force the Investigation to End?If you feel that an invasive investigation has gone on for a long time - particularly without any discovery - you can apply to the Tax Tribunal to make HM Revenue & Customs (HMRC) close the case (HMRC Staff Appeals Handbook: AH2125 - Appeals Handbook - SA Appeals: Assessments, Amendments ... Continue Reading

An unrepresented taxpayer successfully claims tax concession from HM Revenue & Customs with the support of TaxationWeb and The Low Incomes Tax Reform Group Introduction Last month we told you about Sharon France's "Tax Credits Nightmare" and how, with the combined support of TaxationWeb and the Low Incomes Tax Reform Group, (LITRG), she fought and won a Tax Credits Dispute. This month we are delighted to bring you the story of how another unrepresented taxpayer has successfully ... Continue Reading

Three financial advisers were amongst eight people jailed for their part in a VAT fraud amounting to almost £2million. The eight were part of a gang of eleven who had set up fictitious companies claiming to be trading in animal feeds, children’s clothing and fruit and vegetables. They also created business expenses associated with the non-existent companies to evade paying VAT to HM Revenue & Customs (HMRC).The gang registered 15 bogus companies between 1998 and 2004 across Merseyside, Cheshire, ... Continue Reading

The leader of a gang of duty free shoppers, who never even boarded their international flights, was jailed for 15 months on 22 October. He bought cheap air tickets so that the gang members could gain access to lounges at UK airports where they bought thousands of duty free cigarettes and then either left the airport or boarded domestic flights.The cigarettes were later sold on Tyneside evading thousands in excise duty and VAT.Christopher Campbell (39) from Chapel Park in Newcastle upon Tyne bought ... Continue Reading

In a case involving Swiss Re, The European Court of Justice (‘ECJ’) yesterday ruled that VAT is now liable on the sale of reinsurance contracts.  This is a reversal on usual industry practise, and may have a big negative cash flow impact on those selling reinsurance and insurance contracts.The case was based on the sale of reinsurance contracts between Swiss Re entities in Germany.  At the time, the local tax authorities considered that such a transaction represented a supply of service, liable ... Continue Reading