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After 13 years of activity, the HMRC Tax Law Rewrite Project is to end next year.The project is responsible for rewriting direct tax legislation, to make it clearer and easier for users to understand. With the expected enactment in spring 2010 of a second Corporation Tax Bill and the Taxation (International and Other Provisions) Bill, which rewrites provisions that deal mainly with international taxation issues, the Tax Law Rewrite project will have rewritten the most frequently used legislation ... Continue Reading

The Chartered Institute of Taxation (CIOT) has welcomed the publication by HMRC of the revised draft Charter and responses to consultation.The Institute has long called for a taxpayers’ charter , to act as an aid to the unrepresented in particular and generally to complement the ongoing review of HMRC Powers.John Whiting, Tax Policy Director of the CIOT, said: “The new draft Charter is very much in line with the CIOT’s recommendations and represents a huge improvement over the version published ... Continue Reading

Robin Williamson of the Low Incomes Tax Reform Group points out that some people are still adversely affected following the withdrawal of the general 10% starting rate of income tax.IntroductionDuring the closing stages of the Finance Bill, Parliament is once again debating the implications of withdrawing the general 10% starting rate of income tax, focusing on those who are still losing out.With the increase in the basic personal allowance this year to £6,475, most of those who lost out last year ... Continue Reading

BKL Tax Comments on a 'revised view' by HMRC and its impact on the CGT base cost of employee shares and capital losses in affected cases.   IntroductionTax professionals will not need to be reminded of the saga of Mansworth v Jelley. The broad effect of the case was that if an employee acquired shares in circumstances that a charge to Income Tax arose (principally on exercise of a non-approved share option) the base cost of the shares for CGT purposes was neither the amount charged to Income Tax ... Continue Reading

Andrew Needham, Director of VAT Specialists Ltd, comments on the withdrawal of the staff hire concession.   End of a long-standing concessionFurther to HMRC’s original announcement in Budget 2008, and the reminder in Revenue & Customs Brief 08/09, the long-standing Staff Hire Concession was withdrawn from 1 April 2009.  It was introduced in 1997 as a temporary means of dealing with the distortion caused by the Reed Personnel Services case.  However, such was the popularity of the concession ... Continue Reading

On Wednesday 15th July Ed Dwan and Tony Spillett from BDO Stoy Hayward will be talking live about the proposals of personal accountability for senior accounting officers (SAOs), as announced in the 2009 Budget.New legislation, which is due to receive Royal Assent within the next two weeks, will mean that SAOs of large companies - those with a turnover in excess of £200million or gross assets of £2billion or more - will be required to provide personal certification that their accounting systems ... Continue Reading

HMRC have published two consultation documents on modernising HM Revenue & Customs powers, deterrents and safeguards.The first paper contains proposals for modernising and improving HMRC’s information powers, and accompanying safeguards, in two key areas:bulk information powers – these allow HMRC to gather specific pieces of information about a group of taxpayers for use in risk analysis e.g. interest paid by banks without deducting tax; andspecialist unnamed taxpayer powers – these allow HMRC, ... Continue Reading

Peter Arrowsmith FCA outlines a selection of NIC matters, and provides a tip in respect of the annual maximum for NIC purposes.  No sign of IR35 this time! Wright v HMRC Commissioners (TC32) is an employment status case that, for once, does not involve the intermediaries' legislation. The workers of a subcontractor groundworker were ultimately held to be employees of that subcontractor.The General Commissioners had held them to be self-employed, but that decision was overturned on HMRC's appeal ... Continue Reading

Arthur Weller explains a possible way for property investors to obtain tax relief on their residential mortgage. IntroductionAs most landlords are aware, it is not possible to claim interest relief on your main residence. This is because your main residence does not form part of the property business. However, it is possible to claim interest relief on properties that form part of your property business i.e., your buy-to-let portfolio.Introducing BIM45700Paragraph 45700 of the Business Income Manual ... Continue Reading

Mark McLaughlin CTA (Fellow) ATT TEP highlights HMRC guidance on what constitutes a rental income business.IntroductionThe current recession is affecting virtually everyone, including property investors. Many buy-to-let investors are finding it increasingly difficult to find tenants, and some are making significant losses. [ For further information on some potential VAT implications for property developers in the prevailing economic climate, see Andrew Needham's article HMRC Issues New Guidance on ... Continue Reading