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Steve Allen, Director of VAT Solutions (UK) Ltd, provides some tips to legitimately delay the payment of VAT. {mosimage}The basic ruleThe basic rule is that VAT has to accounted for at the time the goods are ‘made available’ (usually delivered) to the customer.  However, this is overridden by the actual tax points, which are the earlier of either:invoice date (if issued within 14 days of the basic tax point);  orreceipt of payment.With services, the basic tax point is when all ... Continue Reading

This month sees the biggest change to the self assessment tax system since its introduction in 1996/1997 - a new 31 October deadline for paper returns.Previously, the deadline for submitting paper and online tax returns was 31 January, but from this year anyone filing on paper must do so by 31 October, or risk a £100 penalty. Online returns can still be submitted up until 31 January. Last year, around 4.5m people filed on paper, so this change will affect many taxpayers.As well as a new deadline, ... Continue Reading

New rates of national minimum wage payable take effect from 1 October 2008.There are three levels of minimum wage, and the rates from 1 October 2008 are:£5.73 per hour for workers aged 22 years and older;A development rate of £4.77 per hour for workers aged 18-21 inclusive; and£3.53 per hour for all workers under the age of 18, who are no longer of compulsory school age.Most adult workers are entitled to the NME if they:are working legally in the UK;are not genuinely self-employed; ... Continue Reading

Mark McLaughlin CTA (Fellow) ATT TEP highlights recent important changes affecting tax compliance.{mosimage}IntroductionChanges to legislation and practice affecting tax compliance seem to be happening at a rapid pace. These days, a practitioner’s life is made more complicated by the fact that announced changes are often prospective, and may not apply until different points in the future. Below is a summary of some recent significant procedural changes, and when they take effect.Tax return ... Continue Reading

Matthew Hutton MA, CTA (fellow), AIIT, TEP considers the potential scope of the inheritance tax business and agricultural property relief clawback provisions.{mosimage}ContextOne of the apparent problems in the recent Nelson Dance case was the issue of the claw-back of relief in the event of the transferor’s death within seven years (which happened) under IHTA 1984, s 113A.Adrian Baird of the CLA has referred me to an interesting analysis, apparently accepted by HMRC, that the claw-back presents ... Continue Reading

Moira Stuart has been officially unveiled as the new face of HMRC Self Assessment advertising campaign.The well-known newsreader and presenter will star in ads publicising the new 31 October deadline for paper tax returns, as well as the 31 January deadline for online tax returns. The new TV ads, which begin next week, feature Moira popping up in unexpected places to remind people of the deadline dates - the first will run in October, with the second following in January. Moira will also ... Continue Reading

The Chartered Institute of Taxation (CIOT) is calling for the Government to agree to the European Commission request to implement in full the European Court of Justice (ECJ) judgement in Marks & Spencer on cross border loss compensation.In the legislation, meant to implement the Marks & Spencer ruling, the United Kingdom imposes conditions on cross border group relief which make it virtually impossible for taxpayers to benefit from the relief.  The Commission considers that this is contrary ... Continue Reading

Robin Williamson of the Low Incomes Tax Reform Group ( http://www.litrg.org.uk/ ) reports on the approach of HMRC and the Courts to Tax Credit debts. Introduction A more aggressive stance by HMRC is leading to more tax credit debt being pursued in the courts. The courts sometimes may not realise that tax credit debt should be treated differently to ordinary tax debt. The production by HMRC of a certificate of debt is not conclusive that a tax credit debt is due and unpaid, and the ... Continue Reading

Businesses required under new regulations to identify and prevent money laundering and terrorist financing have until 30 September 2008 to apply to register.HMRC are reminding Trust or Company Service Providers (TCSPs) and Accountancy Service Providers (ASPs) that they must send in application forms by 30 September 2008.Forms and guidance can be downloaded from the HMRC website and a helpline will also assist customers.HMRC's Deputy Director of Money Laundering Regulations (MLR), Mark Tibbitts, ... Continue Reading

HMRC have published guidance and worked examples on the VAT implications when house builders decide to temporarily let their dwellings before selling them.Information Sheet 07/08 has been published in response to recent enquiries from the house building sector and takes account of the High Court decision in the joined cases of Curtis Henderson and Briararch [1992] STC 732 which arose in the early 1990s. The key points to which the Information Sheet refers are:if you temporarily let a dwelling before ... Continue Reading