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HMRC have published issue 35 of Working Together (June 2009).This latest edition contains coverage of the following:The new Working Together modelLocal Working Together R40 tax repayment form processSelf Assessment (SA) identifier on clients’ bank statementsNational Working Together The National Claims Office A little bit of historyImproving our service to youHow you can help usHow to get your agent code and how to look after it How your agent code is allocatedExtending the Agent Account Manager/Customer ... Continue Reading

The Chartered Institute of Taxation (CIOT) welcomes the release by HMRC of some of the details of the forthcoming New Disclosure Opportunity (NDO).The NDO, announced by the Chancellor in the 2009 Budget, will encourage taxpayers with undisclosed income from an offshore account to disclose their income and suffer a limited penalty.The CIOT, together with other representative bodies, is working with HMRC with the intention of making the NDO work as effectively and efficiently as possible. The Institute ... Continue Reading

Mums currently receiving tax credits are being urged to renew their claim by 31 July, otherwise their payments could stop.Mums who haven't yet renewed their claim will need to check their 2008/09 award statement - part of the renewals pack they should now have received from HM Revenue & Customs (HMRC) - and let them know of any changes in their circumstances, such as their working hours or pay or childcare details.And once you've renewed your claim, don't forget to let HMRC know about any subsequent ... Continue Reading

John Andrews of the Low Incomes Tax Reform Group (LITRG) wonders whether, if people on the Clapham Omnibus thought about the proposed HMRC Charter, they might prefer the LITRG suggestion below to the HMRC version.IntroductionIn our earlier article,  Taxpayer's Charter - Round Two, we commented that we did not like the proposed HMRC Charter very much. In our work, we come into contact with many people on low incomes who do their best but struggle in their dealings with HMRC. Very often it is not ... Continue Reading

Julie Butler FCA of Butler & Co highlights some tax planning possibilities to help small UK business in the current economic climate. IntroductionAre we allowed to call the current economic crisis a “recession” or do we go as far as “depression”? Whatever the title, we must ensure tax planning and protection helps with survival of the small UK business.A sample tax planning checklist is as follows:1) Budget 2009 - Carry back of tax losses three years (normally a one year window)The key points ... Continue Reading

John Andrews of the Low Incomes Tax Reform Group (LITRG) reports that recent discussions with HMRC have been useful and productive.    IntroductionLITRG is often critical of HMRC for not taking on board our suggestions.But sometimes we can report successes. Here we outline where we have helped influence changes to HMRC’s proposals on modernising and aligning the powers of the former Inland Revenue, and Customs and Excise.LITRG has been an active participant in the many consultations on this ... Continue Reading

Matthew Hutton MA, CTA (fellow), AIIT, TEP, presenter of Monthly Tax Review (MTR), highlights issues arising following the Finance Act 2008 changes to the remittance basis. The remittance trap: sub-accounts and right of 'set off'The reason why some are suggesting that another bank is used is, where there is borrowing from the bank concerned, the bank will probably have the right to set off money in all accounts with that bank against the borrowing. That could obviously not be helpful in relation ... Continue Reading

Cheryl Sacks MEng Oxon CTA provides a 10 point Guide to Tax choices for owner managed businesses.Introduction'Thou shalt pay the right amount of tax at the right time.' Right?Yes, but as an owner manager, you can choose which taxes to pay, how much, who pays them, and even when.This Guide is written for owner managed businesses. It aims to set out the tax treatments for your choice of unincorporated business, or incorporated business (company), and for your further choice of extracting salary or ... Continue Reading

The Professional Contractors Group (PCG), the association that represents freelancers and contractors in the UK, has revealed the exact amount the restrictive IR35 tax regulation rakes in for the government.Following a request under the Freedom of Information Act to HMRC, asking just how much tax revenue IR35 raises for the exchequer, PCG can divulge that between tax years 2002/03 and 2007/08, IR35 directly raised just £9.2 million. This equates to an average of around only £1.5 million per tax ... Continue Reading

HMRC Code of Practice 9 has been updated to take account of the new appeals process and penalty regime that came into force on 1 April 2009.HMRC will investigate any situation where they suspect serious tax fraud. The investigation will be undertaken with or without the tapxpayer's voluntary co–operation. However, if the paxpayer does co–operate, HMRC say that the investigation will proceed more quickly, efficiently and advantageously for both parties than if the taxpayer refuses to co–operate. ... Continue Reading