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Alison Hawkes of Chiltern Tax Support for Professionals Ltd highlights some potential pitfalls and problem areas in the CIS Scheme.Introduction The new CIS scheme has now been running for a full year. One or two problem areas have come to light, and in particular the new compliance regime can have very serious consequences for construction businesses.Status of subcontractorsOne aspect of the new scheme that could be costly if not taken seriously is that the monthly contractors’ returns ... Continue Reading

Robin Williamson of the Low Incomes Tax Reform Group ( www.litrg.org.uk ) comments on an MPs' report on those who are still going to lose out following the abolition of the 10% rate.Robin WilliamsonIntroductionEven after the raising of personal allowances announced on 13 May 2008, there are still some 1.1 million households on low incomes yet to be compensated for the withdrawal of the 10% starting rate. An MPs’ report recommends that the remaining losers be identified and compensated. ... Continue Reading

HMRC have confirmed details of their new practice regarding voluntary disclosure of errors on VAT returns from 1 September 2008.The current practice, described in paragraph 2.4 of Notice 700/43 (Default Interest) and note 4 on form VAT 652, of not charging default interest on net errors of £2,000 or less separately notified to HMRC, will continue until the end of August 2008. However, following the decision in Wilkinson v Commissioners of Inland Revenue, this practice is not considered lawful ... Continue Reading

John Andrews of the Low Incomes Tax Reform Group ( http://www.litrg.org.uk/ ) highlights the problems faced by low-income foreign students and migrant workers coming to the UK, when dealing with the UK tax systemIntroductionLITRG has tried hard to defer the changes the Government propose to the way in which low-income migrant workers and students are taxed in this country. But in June, at the committee scrutinising the Finance Bill, the Government rejected any change.If you are a foreign student ... Continue Reading

Simon Groom looks at the new CTA exam structure of the Chartered Institute of TaxationChoice – a good or a bad thing? Discuss!If we have it we have too much to think about, if we don’t we complain about being forced into something we don’t want to do. As the old saying goes, you can’t please all of the people all of the time, and generally I think we would prefer to have choice than not. On that basis, those of us who like choice will welcome the new CTA structure which gives ... Continue Reading

The Editorial Team at TaxationWeb reviews the main developments for Capital Allowances which have effect from April 2008, and considers some basic planning points.Introduction This article covers the main developments in the Capital Allowances regime, most of which have effect from April 2008. Whilst the ‘Annual Investment Allowance’ (AIA) has perhaps been seen as the headline development, it is important also to consider the fundamental changes to the general pool – along with the creation ... Continue Reading

BKL Tax look at the burden of proof in tax investigations, and highlight changes in company law from 1 October 2008 following Companies Act 2006.   Crime and Punishment Clients who are under investigation by HMRC sometimes complain that they are made to feel like criminals.  OK, as a matter of fact some of them may be: but the conventions of client management tend to suggest that it's not always wise to say so, particularly since the vast majority of tax misbehaviour is settled ... Continue Reading

TaxationWeb has ranked No. 5 in the Hitwise Business and Finance - Accountancy industry Awards, based on market share of visits among all United Kingdom websites during the period from April to June 2008.The Hitwise UK Top 10 Awards Programme celebrates the most successful UK websites in 160+ online industries. As Hitwise reports on the anonymous online usage and search behaviour of more than 8.43 million UK Internet users—the largest online sample of its kind—this unique awards programme recognises ... Continue Reading

HMRC will be liable to make repayments of millions of pounds following its acceptance that fund management of venture capital trusts (VCTs) should have been exempt from VAT since January 1990, say VAT experts at accountants PKF. Historically, HMRC maintained that fund management of closed ended investment vehicles, such as investment trust companies (ICTs) and VCTs, should be subject to VAT. Last year the European Court of Justice (ECJ) ruled that fund management should be exempt in a case involving ... Continue Reading

Stephen Besford and Jacqui Fleming of BDO Stoy Hayward consider whether a recent police operation could lead to HM Revenue & Customs investigating possible tax evasion cases.IntroductionOperation Rize, the Metropolitan Police’s raid on safe deposit boxes at three London locations, has produced a succession of ever more sensational headlines since news of the story first broke at the beginning of June.  At the last count the operation, conducted by the Met’s Economic and Specialist ... Continue Reading