22/09/2009, by Sarah Laing, Tax news - VAT & Excise Duties
HMRC have published Brief 59/09, which explains the position following the High Court judgment in Insurancewide.com Services Ltd and Trader Media Group Ltd (Case ref: CH /2007/APP/0806 & CH/2008/APP/0435).The High Court found against HMRC that supplies of insurance introductory services provided via the internet are exempt from VAT. HMRC has been granted leave to appeal this decision to the Court of Appeal.The appeals of Insurancewide (IW) and Trader Media Group (TMG) concern the VAT liability ... Continue Reading
22/09/2009, by Sarah Laing, Tax news - HMRC Administration, Practice and Methods
A Protocol to the UK/Malaysia Double Taxation Agreement was signed on 22 September 2009.A Protocol to the Double Taxation Agreement between the UK and Malaysia was signed in London on 22 September 2009 by H.E. Datuk Abd. Aziz Mohammed, High Commissioner of Malaysia and the Rt Hon Stephen Timms MP, Financial Secretary to the Treasury.The Protocol updates the exchange of information Article of the existing Agreement to bring it into line with current OECD standard and practice.The text of the Protocol ... Continue Reading
22/09/2009, by HM Revenue & Customs, Tax news - HMRC Administration, Practice and Methods
Fifty HMRC officers were involved in dawn raids, which lead to 5 people being detained, potentially saving the taxpayer millions of pounds in fraudulent tax credit claims relating to fictitious children.Seven addresses in Glasgow were searched under warrant with follow up visits to around 30 tax credit claimants’ addresses in Manchester, Derbyshire, West Yorkshire, South Yorkshire and Glasgow to verify details of claims.In the multi-agency operation the five people were detained after officers ... Continue Reading
19/09/2009, 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 in connection with the payment of Class 3 National Insurance contributions. New Disclosure Opportunity (NDO)The NDO was launched on 1 September carrying a restricted penalty of 10% in most cases and is mainly concerned with 'proper' taxes, etc., in respect of offshore accounts and offshore assets. However, there will be NIC to include in the case of employer liabilities and profits of the self-employed. Intention to disclose ... Continue Reading
19/09/2009, by Steve Allen, Tax article - VAT & Excise Duties
Steve Allen, Director of VAT Advisers Ltd, highlights a further selection of recent VAT case decisions.High Court Finds For Taxpayer that It Could Not Have Known about Fraudulent TransactionsAnother MTIC ('Missing Trader Intra-Community Fraud', a.k.a. 'Carousel Fraud') case, this one concerned with HM Revenue & Customs' (HMRC's) refusal to repay a net balance due on the basis of the Appellant’s participation in fraudulent evasion. The Tribunal had earlier found for HMRC.The Appellant was a participant ... Continue Reading
14/09/2009, by Sarah Laing, Tax news - Business Tax
HMRC have previously taken the view that, where a company buys back its own shares held on an overseas branch register, the return that the company is required to send to Companies House is chargeable with stamp duty at the rate of 0.5% under the provisions of FA 1996, s. 66.This view has recently been challenged and HMRC have subsequently taken legal advice. HMRC now consider that a company’s purchase of its own shares held on an overseas branch register is relieved from stamp duty by Companies ... Continue Reading
14/09/2009, by Sarah Laing, Tax news - HMRC Administration, Practice and Methods
A Protocol to the UK/Austria Double Taxation Convention was signed on 11 September 2009.A Protocol to the Double Taxation Convention between the UK and Austria was signed in Vienna on 11 September 2009 by Simon Smith, the UK Ambassador to Austria and Andreas Schieder, Austria’s State Secretary.The Protocol updates the exchange of information article of the Convention to bring it into line with current OECD standards.The text of the Protocol will shortly be presented to Parliament for approval and ... Continue Reading
14/09/2009, by HM Revenue & Customs, Tax article - General
HM Revenue & Customs points out that some children will benefit from a welcome Government windfall.IntroductionWhat did you do with your pocket money when you were younger? An impressive 65 per cent of today’s Child Trust Fund kids save some or all of their pocket money.Research by HM Revenue & Customs (HMRC) shows that five and six year olds – the same children who will be among the first to benefit from the extra £250 that the Government is paying into their Child Trust Fund accounts (CTF) ... Continue Reading
12/09/2009, by James Bailey, Tax article - General
James Bailey highlights a 'hit list' of tax avoidance schemes on HMRC's website, which HMRC considers do not work. The Requirement to Disclose Tax Avoidance SchemesThe tax legislation requires those who promote tax avoidance schemes to disclose the details of their schemes to HM Revenue & Customs. (HMRC). There are severe penalties for those who fail to do so, and for those who use schemes which have not been disclosed. Once the scheme has been disclosed, HMRC will allocate it a reference number, ... Continue Reading
12/09/2009, by Mark McLaughlin CTA (Fellow) ATT TEP, Tax article - General
Mark McLaughlin CTA (Fellow) ATT TEP considers whether advice and rulings from HMRC are as helpful as they seem.IntroductionPractitioners will no doubt be painfully aware that tax law (and its application in practice) is full of uncertainties and ‘grey areas’. However, there are probably more opportunities than ever before to obtain clearances and rulings from HMRC on the tax treatment of various transactions. These include:HMRC Code of Practice 10 - ‘Information and Advice’ (see COP10 - ... Continue Reading
