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In this third in a series of four articles covering important issues for those whose household incomes have fallen in the ongoing recession, the Low Incomes Tax Reform Group advises on Tax Credits. IntroductionIn this third in a series of four articles covering issues to consider if you have been affected by the recession, we look at tax credits.  The article provides links to more detailed guidance on the Low Incomes Tax Reform Group’s (LITRG) website or other external websites such as DirectGov ... Continue Reading

Mark McLaughlin CTA (Fellow) ATT TEP points out that a recent tax case highlighted a tax planning opportunity in the current recession.IntroductionTax relief for losses has obviously become a much more important issue for taxpayers since the recession started. However, as in many other areas of tax, securing loss relief is not always as straightforward as it should be. Fortunately, a recent tax case offers some assistance in some cases.Capital Gains Tax (CGT) loss relief is available for loans to ... Continue Reading

Steve Allen of VATAdvisers Ltd comments on an unfortunate change in VAT treatment with an adverse affect on charities.IntroductionCharities are still reeling from HMRC’s recent announcement that a key property VAT concession is being withdrawn.  The view coming from the VAT and tax advisers is that the loss of the concession will have a devastating effect on the charitable sector.Background - Extent of non-Charitable UseIn Revenue & Customs Brief 39/09 and VAT Information Sheet 08/09, HMRC said ... Continue Reading

In the second of 4 articles focusing on people with lower incomes particularly as a result of the current recession, the Low Incomes Tax Reforms Group highlights some steps people can take to make sure they aren't paying tax when they don't need to. IntroductionIn this second article in our ‘Feeling the pinch’ series, we give some pointers on how you might be able to save tax, for example by making the most of your allowances. This article also provides links to more detailed guidance on the ... Continue Reading

In the first of 4 articles focusing on those suffering reduced income levels in the current economic downturn, the Low Incomes Tax Reform Group gives advice on Tax and National Insurance. IntroductionMany people are being affected by the recession through job losses, reductions in income and increased living costs. Now, more than ever in recent years, it is important you claim all that you are entitled to, and let HMRC know if your circumstances have changed. Over a series of four articles, we will ... Continue Reading

HMRC have announced a new minimum interest rate on tax repayments of 0.5%, which means that in future interest will still be payable even when the Bank of England base rate falls below 1.5%.The Government will also be introducing changes to the current interest rates regime, designed to deliver greater transparency and certainty in the way that rates are set and applied. This will pave the way for the implementation of full interest harmonisation which was legislated for in this year’s Finance ... Continue Reading

The Low Incomes Tax Reform Group explains some of the tax aspects of cashing in small pension funds, and where it may be possible to claim a tax refund when the funds are paid out. IntroductionIf you want to cash in a small pension, or several small pensions of up to £17,500 in value during the tax year to 5 April 2010, you may find that too much tax is taken off the lump sum you get. This article will explain how this happens, and what you need to do in order to reclaim the excess tax.  Cashing ... Continue Reading

The Low Incomes Tax Reform Group gives some timely financial advice to students, those struggling with tax returns and tax payments, and what to do if you missed the all-important tax credits renewals deadline.IntroductionAlthough at this time of year you may well be concentrating on holidays and occupying out-of-school offspring, spare a few minutes to read this article reminding you about topical tax, tax credits and other considerations.  You could even save some money to help fund a well-deserved ... Continue Reading

HMRC have published the latest in a series of online, bite-sized videos for new and small businesses.Episode three in the “Start Up Diaries” series follows recent developments in the lives of three budding entrepreneurs – Ruth, Nick and Hannah.The video diary series provides a unique insight – in the trio’s own words – into how they’ve coped with the ups and downs of going it alone. It can be viewed or downloaded free from the Business Link website at www.businesslink.gov.uk/taxhelp, ... Continue Reading

HMRC have confirmed the details of a new disclosure initiative that will allow people with unpaid taxes linked to offshore accounts or assets to settle their tax liabilities at a favourable penalty rate.Under the New Disclosure Opportunity (NDO) people who make a complete and accurate disclosure between 1 September 2009 and 12 March 2010 will qualify for a 10% penalty. Those who choose not to take this opportunity and are subsequently found to have undeclared tax liabilities are likely to face a ... Continue Reading