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A recent VAT tribunal case has emphasised the importance of ensuring that HMRC adhere to statutory time limits when collecting underdeclared or overclaimed VAT. That was the outcome of the case won by Grant Thornton, leading financial and business adviser when representing a private healthcare provider in a VAT payment dispute.The essence of the case dates back to 1997 when many operators of private hospitals entered into prepayment arrangements for drugs and prostheses. The intention was to militate ... Continue Reading

Andrew Needham, Director of VAT Solutions (UK) Ltd, provides an overview of HMRC's recently announced consultation on the proposed simplification of various VAT procedures. {mosimage}IntroductionThe statutory requirement to carry out partial exemption and Capital Goods Scheme calculations has long been one of the most technically difficult areas of VAT compliance for businesses, especially smaller ones. For this reason, HMRC’s recent announcement in Revenue & Customs Brief 30/08 of ... Continue Reading

Mark McLaughlin CTA (Fellow), ATT, TEP considers the application of the income tax anti-avoidance rules on settlements to dividend waivers{mosimage}They think it’s all over … it is now! This will be a familiar quotation to football loving readers (or the more senior ones, anyway), being the famous words from Kenneth Wolstenholme’s BBC TV commentary in the closing moments of the 1966 World Cup, in which England beat West Germany 4-2 after extra time to win the final. When I hear ... Continue Reading

BKL Tax comments that a recent adverse Court decision regarding the 'IR35' rules is not necessarily the end of the World for contractors.No: this is not a piece about the machinations going on below the shores of Lake Geneva, whose connection with taxation is tentative to say the least. On the contrary it is about the affairs of one Jonathan Bessell and his company Dragonfly Consultancy Limited, which was found by the High Court in a decision released a few days ago to be within the notorious ... Continue Reading

The Chartered Institute of Taxation (CIOT) has submitted its response to HMRC's consultation documents on ‘A new Charter for HMRC and its customers’.The CIOT strongly supports the idea of a charter and sees it as a necessary and important complement to the ongoing review of HMRC Powers.  The CIOT firmly believes that the Charter must be founded in statute, so that it has a proper basis. Nick Goulding, CIOT President, said:  “With the extensive modernisation and extension ... Continue Reading

The Chartered Institute of Taxation (CIOT) has submitted its response to HMRC's consultation documents on ‘A new Charter for HMRC and its customers’.The CIOT strongly supports the idea of a charter and sees it as a necessary and important complement to the ongoing review of HMRC Powers.  The CIOT firmly believes that the Charter must be founded in statute, so that it has a proper basis. Nick Goulding, CIOT President, said:  “With the extensive modernisation and extension ... Continue Reading

TMF Global VAT/GST Compliance News - September 2008Australia: rules out GST increase to fund Company Income Tax increaseBosnia: potential VAT increase to cover costs of customs integration with EUDenmark: extension of VAT reverse charge on services from non-resident suppliersEstonia: talk of raising reduced VAT rate from 5% to 9%EU: threat to import VAT deferment on immediate onward supplies to combat fraudHungary: avoids VAT hike as route to fund deficitMalawi: VAT rate cut from 17.5% to 16.5%Netherlands: ... Continue Reading

HMRC Brief 42/08 provides guidance to users of diesel fuelled grass cutting vehicles, such as local authorities, golf course operators and ground staff, on whether the vehicle should be run on red or white diesel.Schedule 1 of the Hydrocarbons Oil Duties Act 1979 lists the categories of excepted vehicle. Excepted vehicles are those which are entitled to use rebated fuel. The three categories which vehicles undertaking grass cutting work could fit into are:unlicensed vehicles not used on ... Continue Reading

PricewaterhouseCoopers LLP, the market leading professional services firm, has announced 7% growth in turnover for FY08 to £2.24 billion. Underlying net revenue growth is 5% with underlying profit growth of 7%.Overall turnover in Assurance grew 3% to £1,043 million, turnover in Tax increased 8% to £675 million and turnover in Advisory grew 13% to £526 million.Ian Powell, UK Chairman, PricewaterhouseCoopers LLP, commented:“We had a good performance given the toughest ... Continue Reading

John Andrews of the Low Incomes Tax Reform Group ( www.litrg.org.uk ) asks whether taxpayers considering appeals in disputes with HMRC will be better off under a new case review system to be introduced next year. IntroductionFrom April 2009, when taxpayers find themselves in dispute with HMRC, they will be able to ask HMRC to carry out an “internal review” of their case as a simpler and less costly alternative to appealing to the Tribunal. But LITRG have warned that HMRC’s published ... Continue Reading