11/10/2009, 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 concerning the state pension adult dependency increase.Swine 'flu and SSPThe Government is considering extending the self-certification period for Statutory Sick Pay beyond seven days for a temporary period, if it becomes necessary. In that event, HM Revenue and Customs will no doubt make a suitable announcement and details can also be found now at Managing the Impact of Swine 'flu in the WorkplaceAdditional Paternity Leave ... Continue Reading
11/10/2009, by Mark McLaughlin CTA (Fellow) ATT TEP, Tax article - Business Tax
Mark McLaughlin asks whether statutory clearances are becoming more difficult to obtain. IntroductionHow many people genuinely thought that they would see the day when business taxpayers with cash flow problems could spread or defer tax liabilities simply by picking up the telephone and having a quick chat with a friendly HMRC representative? If someone had told me a couple of years ago that an HMRC service would exist to make late payments easier and more convenient, I probably would have thought ... Continue Reading
11/10/2009, by Julie Butler, FCA, Tax article - Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
Julie Butler FCA of Butler & Co outlines some Inheritance Tax tips for surviving the recession.Disposal Proceeds and the Four Year RuleWhat advantages, in the context of estate administration, can the tax adviser take from falling property prices? Obviously, if Inheritance Tax (IHT) reliefs are available due to Business Property Relief (BPR) or Agricultural Property Relief (APR), the argument remains that the higher the value for IHT, the higher the subsequent value for the Capital Gains Tax (CGT) ... Continue Reading
06/10/2009, by HM Revenue & Customs, Tax news - HMRC Administration, Practice and Methods
Many people who are entitled to a cash increase in their income are missing out simply because they assume they are not entitled to Working Tax Credit (WTC).HMRC have set up an online calculator enabling anyone who thinks they might be eligible for WTC to quickly find out for sure whether they are likely to be entitled - and by how much.The average amount of WTC unclaimed is £1,600 a year so some people will qualify for significantly more.Working Tax Credit is payable to people who are in work ... Continue Reading
03/10/2009, by Mark McLaughlin CTA (Fellow) ATT TEP, Tax article - General
Mark McLaughlin CTA (Fellow) ATT TEP outlines the potential tax treatment of payments made on the termination of an individual's employment.IntroductionAn unfortunate consequence of the economic climate is that more people will find themselves out of work. At least there is an Income Tax exemption for statutory redundancy payments (ITEPA 2003 s 309). Non-statutory redundancy payments are charged to tax under ITEPA 2003 s 401, subject to various potential exceptions including the first £30,000 under ... Continue Reading
03/10/2009, by Steve Allen, Tax article - VAT & Excise Duties
Steve Allen of VAT Advisers Ltd outlines some pitfalls and planning points for company owners transferring commercial property into a pension scheme. IntroductionFor some time now, it has been popular for companies to transfer their commercial property into a pension fund for the owner-directors. However, in many cases, nobody considers the VAT aspects of the transfer, or what savings can be made.In most cases, the properties are transferred into the pension fund, and then rented back to the company, ... Continue Reading
26/09/2009, by Mark McLaughlin CTA (Fellow) ATT TEP, Tax article - General
Mark McLaughlin CTA (Fellow) ATT TEP considers how the new penalty regime for errors might be used as the basis for a compensation regime for HMRC errors or delays. IntroductionMost people practice the ‘Golden Rule’, even if they do not know it by name. Perhaps the most common expression of the Golden Rule (irrespective of religious beliefs) is the phrase: “Do unto others as you would have them do unto you”. It is the ethic of reciprocity, if you prefer.The most disappointing aspect ... Continue Reading
26/09/2009, by Matthew Hutton MA, CTA (fellow), AIIT, TEP, Tax article - Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
Matthew Hutton MA, CTA (fellow), AIIT, TEP, highlights an apparently common Inheritance Tax issue involving married taxpayers (or civil partners) with Nil Rate Band Discretionary Trusts in their wills. ContextThe scenario on this issue (which provoked a significant number of postings) was set on 29 July 2009 as follows: "We are finding that a number of clients are taking the line that with the advent of the [Transferable Nil Rate Band] TNRB they do not need our assistance in dealing with Probate ... Continue Reading
26/09/2009, by Andrew Needham, Tax article - VAT & Excise Duties
Andrew Needham of VAT Specialists Ltd highlights the effects of an important change in the law governing time limits for correcting VAT errors and imposing VAT assessments.New time limitsFurther to the new compliance powers contained in Finance Act 2008, HMRC have changed the time limits for correcting errors, both by using the error correction procedures (what used to be called ‘Voluntary Disclosures’) and for VAT assessments issued by visiting officers, from 3 years to 4 years, effective from ... Continue Reading
23/09/2009, by Low Incomes Tax Reform Group, Tax article - General
The Department for Work & Pensions (DWP) have re-launched their online calculator which covers benefits to which an individual may be entitled, but many problems remain, as John Andrews of LITRG explains. Introduction The DWP have struggled for many years to devise a calculator which will show low-income people what they are entitled to receive from the State. In 2008 they launched the Benefits Adviser calculator on the Directgov website. It was not comprehensive and it was not particularly user-friendly. ... Continue Reading
