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HMRC Brief 15/09 provides clarification regarding ESC 3.5: Misdirection, which is effectively withdrawn from 1 April 2009.Broadly, HMRC are required by law to collect all the taxes, duties and levies under their care, but they have a limited degree of discretion in specific circumstances. In recent years, there have been a number of cases before the courts which have defined the circumstances in which HMRC can regard themselves as bound by incorrect advice. The former Extra Statutory Concession 3.5: ... Continue Reading

HMRC officers are investigating the source of up to 50,000 litres of laundered green diesel, which has been seized at the Port of Holyhead.The fuel was discovered in two freight lorries by customs officers from the UK Border Agency (UKBA). Each trailer contained a concealed tank. One tank was properly welded inside the trailer but the second - weighing around 20 tons - was crudely attached using only two cargo straps to secure it. The rented vehicles - one of which was registered in Northern Ireland, ... Continue Reading

The Social Security (Contributions) (Re-rating) Order 2009 (SI 2009/593) comes into force on 6 April 2009.This Order increases the rates of Class 2 and Class 3 national insurance contributions (NICs) from 6 April 2009. The weekly rate for Class 2 NIC increases from £2.30 to £2.40, and Class 3 contributions will increase from £8.10 to £12.05 per week.The Order also increases the lower earnings exemption threshold for Class 2 NICs from £4,825 to £5,075 from 6 April 2009. This is the limit below ... Continue Reading

HMRC are reminding small employers that if they file their 2008/09 Employer Annual Return online, they will receive a tax-free payment.Small employers (those with fewer than 50 employees) can still currently file their end of year returns on paper if they so wish. However, those who switch to online filing and file a valid online return will qualify for a £75 payment. Mandatory online filing is already in place for large employers - employers with 50 or more employees must file their 2008/09 ... Continue Reading

Arnold Aaron provides an introduction to the taxation of a popular form of investment known as the Investment Bond.  BackgroundChargeable event certificates, partial surrenders, top slicing relief, 5% allowances… the list goes on. The Investment Bond available through Life Companies has existed since the early 1970s if not earlier.  Because they have their own unique tax rules, policyholders and on occasion tax practitioners are sometimes in a muddle over the tax treatment. This article is intended ... Continue Reading

Andrew Needham of VAT Specialists Ltd points out that the replacement of the VAT and Duties Tribunal with the new Tribunals regime from 1 April 2009 could have unfortunate consequences for small businesses.IntroductionThe Ministry of Justice has been reviewing the operation of the Tribunals Services across the board, but of particular interest to taxpayers will be the review of the VAT & Duties Tribunals, the Commissioners, and Special Commissioners.BackgroundIn light of the amalgamation of the former ... Continue Reading

HMRC have published a new Statement of Practice (SoP) 1/09.Statement of Practice (SoP) 5/84: Employees resident but not ordinarily resident in the UK: general earnings chargeable under s. 25 and 26 ITEPA 2003 is to be withdrawn from 6 April 2009 and replaced with new SoP 1/09: Employees resident but not ordinarily resident in the UK: General earnings chargeable under Sections 15 and 26 Income Tax (Earnings and Pensions) Act 2003 (ITEPA) and application of the mixed fund rule under Sections 809Q onwards ... Continue Reading

HMRC have published Brief 10/09, which outlines the new tax appeals system and the new internal review process, due to be implemented from 1 April 2009.From 1 April 2009 there will be a major change to the current system of tax tribunals. In conjunction with this, HMRC are also changing the way they handle disagreements about tax. The new review process is designed to give a more consistent approach to the way HMRC seek to resolve disputes with those who disagree with appealable tax decisions ... Continue Reading

Peter Arrowsmith FCA presents a selection of NIC matters, and highlights a practical tip regarding Statutory Sick Pay and the Employment and SUpport Allowance.  Another mariner caseLate last year a case involved manipulation of the earnings rules to obtain an NIC reduction where an appropriate pay pattern for a mariner had been in point.A more sophisticated arrangement was in play in the case of Oleochem (Scotland) Ltd ('O'). Here, O provided offshore laboratory services to the oil and gas industry. ... Continue Reading

The Low Incomes Tax reform Group (LITRG) provides some timely tax points and tax saving tips with the tax year end of 5 April fast approaching.IntroductionSpring is traditionally a time for cleaning in readiness for the brighter days to come.  It is also a time to consider things you might need to do before the new tax year begins on 6 April.This article therefore identifies some tax and tax credits issues which might need tidying up. Following on from our February article February - not such a ... Continue Reading