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The United Kingdom has signed a Tax Information Exchange Agreement (TIEA) with Gibraltar, which will help to ensure that those liable to tax in the UK pay the right tax on investments in Gibraltar and on supplies of goods and services into and out of the UK.The TIEA was signed by the Financial Services Secretary to the Treasury, Lord Myners, and the Chief Minister of Gibraltar, Peter Caruana QC.Welcoming the signatures, the Financial Secretary to the Treasury, the Rt Hon Stephen Timms MP, said:“I ... Continue Reading

In an exclusive TaxationWeb article, HM Revenue & Customs announces guidance on the New Disclosure Opportunity for foreign assets.Introduction to the New Disclosure Opportunity (NDO)Offshore tax evasion has become very high profile recently, receiving prominent media coverage. A number of countries are keen to take strong measures to tackle the problem and as part of the action being taken in the UK, HM Revenue & Customs (HMRC) have announced a New Disclosure Opportunity (NDO). While recognising ... Continue Reading

Lee Sharpe of TaxationWeb considers HM Revenue & Customs' 'New Disclosure Opportunity' for overseas assets and thinks better publicity is needed.IntroductionWe were delighted to be asked by HM Revenue & Customs (HMRC) to publish an article on the 'New Disclosure Opportunity' especially for TaxationWeb readers. However, as I read their article, it seemed that there were one or two important points that might not be obvious to taxpayers in general, so this article is intended to highlight some of ... Continue Reading

In the latest HMRC podcast, Permanent Secretary for Tax, Dave Hartnett, warns that anyone with undeclared offshore tax liabilities who fails to come forward under the New Disclosure Opportunity (NDO) faces an increased risk of prosecution.Under the NDO, people making a complete and accurate disclosure of their untaxed offshore liabilities between 1 September and 12 March 2010 will have any penalty capped at 10 per cent, or 20 per cent if they failed to take up a written offer of a capped penalty ... Continue Reading

It is unlikely that the temporary reduction in the standard rate of VAT will be extended beyond the end of the year after it was revealed that tax revenues have fallen sharply.In July, the government borrowed £8 billion, during a month when the tax take is usually at a high.Although the government has already predicted a public finance deficit of £175 billion for the current year, some analysts are forecasting a gap of as big as £200 billion.Against the backdrop of a significant deterioration ... Continue Reading

Robin Williamson explains how the Low Incomes Tax Reform Group responded to HMRC’s ‘Working with tax agents’ consultation.BackgroundFor some years now, HMRC have been reviewing working methods and considering how the tax system can be run better. A recent consultation sought to review how HMRC manage their relationship with ‘tax agents’.  Whilst welcoming the principles behind the consultation, LITRG’s response calls for HMRC to better support volunteer advisers and to recognise the ... Continue Reading

Kelly Sizer of LITRG explains that disabled employees who drive automatic company cars should act now to claim a new relief, and employers should note the changes.The basics If your boss provides you with a company car, you generally have to pay tax on the value of the 'benefit in kind'. Basically, your employer calculates the taxable value of the car based upon:the dates when it is available for your use;its list price when it was new, plus the list price of certain optional extras; andits CO2 emissions.Your ... Continue Reading

HMRC officers have arrested seven people in connection with a suspected £38 million VAT fraud.The suspected fraud involves the trading of emissions allowances (often called ‘carbon credits’). Seven people were arrested in the Gravesend and Greater London areas and twenty seven properties, both business and residential, were searched.  Further arrests are likely and the investigation continues.Those arrested are believed to be part of an organised crime group operating a network of companies ... Continue Reading

HMRC are writing to half a million companies and tax agents to alert them to important changes to corporation tax (CT) filing.The mail-shot contains a new HMRC leaflet on the changes, which will require all company tax returns delivered after 31 March 2011 to be filed online, for accounting periods ending after 31 March 2010.The leaflet explains how, after 31 March 2011, CT returns must be filed online in a specified data format (known as Inline XBRL or iXBRL). Companies will be able to file online ... Continue Reading

Mark McLaughlin CAT (Fellow) ATT TEP highlights some practical issues arising from the introduction of HMRC's internal review system. BackgroundThe First-tier and Upper Tribunals have been with us for tax appeals since 1 April 2009. HMRC’s optional ‘internal reviews’ procedure was also introduced from that date. A ‘guided learning unit’ for HMRC staff was published on HMRC’s website in April ( Tribunals Reform Review Officer Guided Learning Unit ). The guide is intended for HMRC review ... Continue Reading