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HMRC have issued Brief 33/09, in which they aim to clarify their policy following the House of Lords judgment in The Principal and Fellows of Newnham College in the University of Cambridge [2008] UKHL 23.The case before the House of Lords concerned whether Newnham was 'in occupation' of the college library. If they were, their option to tax the library would be disapplied and their occupation would be for the purpose of making supplies of exempt education. Consequently, the VAT incurred on the rebuilding ... Continue Reading

The latest edition of HMRC Agent Update – the electronic update for tax agents - is now available.Madeline McGrillen, Head of Tax Agent Communications, said: “Agent Update is a bi-monthly publication that rounds up all our latest tax information services and consultations and directs agents to further information online.  We did some research earlier in the year which showed that nearly 90% of agents who read the Update found its section on tax issues useful - it’s a great way to stay in ... Continue Reading

James Bailey comments on HMRC's proposed new, controversial powers.  IntroductionIn more primitive times, certain offenders were made to stand restrained in a wooden frame for a period of hours, while the populace jeered and threw rotten vegetables (and worse!) at them. The punishment was meant to shame the wrongdoer, though on some occasions things went too far and they were seriously injured or killed, while on other occasions the populace displayed their sympathy and support (typically for political ... Continue Reading

In the first of three articles, freelance journalist Nick Morgan looks at the tricky area of meetings with HMRC in enquiry cases.No - well that’s the short answer. Now let’s start with the basics: this is not a meeting, it’s an interview. Ex-Revenue investigator Simon Sweetman says, “I have worked with Inspectors who thought it a victory if the taxpayer cried [in the interview].” (from "I Don't Like Meetings", by Simon Sweetman on AccountingWeb).Phil Berwick, Director of Tax Investigations ... Continue Reading

The UK government has signed a new double taxation arrangement (DTA) which will facilitate tax information exchange that meets OECD (Organisation for Economic Co-operation and Development) standards.Welcoming the DTA Stephen Timms MP, said:“Information exchange is a vital tool in ensuring that governments receive the revenues they need to resource the essential public services on which we all depend.   “I would like to congratulate the Cayman Islands Government for signing up to an arrangement ... Continue Reading

Peter Arrowsmith FCA outlines a selection of NIC matters, and reminds small employers about the enhanced recovery of Statutory Maternity Pay available to them.  Heads in the CloudsFollowing on from the Castle Construction case that I mentioned earlier in the year, [ see NIC Update February 2009 - Ed. ] another status case that doesn't involve IR35 has rightly been lost by HM Revenue and Customs.In one of the first cases to be reported under the First-tier Tax Tribunal reference (although it was ... Continue Reading

Cheryl Sacks provides a 10 point 1 Minute Guide to Incorporation.IntroductionThe process of incorporation remains a necessity for any business that, despite recent tax rate changes, wants to trade as a limited company.Incorporation is the transfer of an established business to a limited company.This 1 Minute Guide is a brief guide to the mechanics of incorporation. To read about the obligations of running a company, or to calculate whether running a company will continue to be tax effective for you, ... Continue Reading

Do you have views on the consultation that the Chancellor announced in Budget on the drive to modernise the powers and safeguards of HM Revenue & Customs (HMRC)? 'Working with Tax Agents' aims to ensure that as many as possible of the returns and claims submitted by agents are accurate and viable. HMRC think this is in the interests of the profession, taxpayers and HMRC, and that inaccurate returns damage the standing of the profession, inconvenience taxpayers and waste our resources. The review ... Continue Reading

The latest staff survey for HMRC has been quietly published on the HMRC website.It shows that HMRC now come bottom in more categories than any other government department surveyed.As the Low Income Tax Reform Group (LITRG) predicted a year ago, the decline in HMRC staff morale has been bad for low-income customers who depend upon such staff getting things right. This last year has indeed seen a deterioration of service in many areas while the latest survey of 50,000 staff shows that the decline ... Continue Reading

HMRC have published revised advisory fuel rates for company car users, which take effect from 1 July 2009.The revised figures give about one month's notice of the changes and apply to all journeys on or after 1 July 2009 until further notice. As was done for previous rates, HMRC are content for the new rates to be implemented immediately where employers are able and wish to do so.  The new rates are as follows:Engine size Petrol  Diesel LPG 1400cc or less 10p 11p 7p 1400cc to 2000cc 12p 11p 9p Over ... Continue Reading