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Barrister, John Wilmot, has been jailed for five years for attempting to cheat the country out of £17.5million through a fraudulent VAT claim and a bogus £100 million aircraft engine deal.Wilmot's claims that he was not knowingly involved in the attempted VAT fraud were rejected during the trial at Southwark Crown Court. In passing sentence, Her Honour Judge Taylor, said: "It was an audacious attempt to obtain a large sum of money by fabricating evidence." Wilmot, a Nigerian ... Continue Reading

The UK is introducing a new system of penalties for errors in tax returns, including VAT refund claims. The new rules mean that traders could be charged a penalty if they don’t take reasonable care to make sure claims are correct.HMRC can charge financial penalties for errors in claims which result in an overstatement of the amount of refund due. The new penalties apply to VAT claims made under the EC 13th Directive (86/560/EEC) by businesses based outside the European Union, for years ... Continue Reading

John Andrews of the Low Incomes Tax Reform Group ( www.litrg.org.uk ) provides some helpful guidance on what to do if your tax return is selected for enquiry by HM Revenue & Customs.IntroductionWhat if one day you receive a brown envelope in the post and inside is a letter from HM Revenue & Customs telling you that they are making some enquiries into your tax return or tax credit claim? How will you feel? Worried, confused, irritated or perhaps, even angry? But what should you do?What do ... Continue Reading

Andrew Needham, Director of VAT Solutions (UK) Ltd, highlights a selection of recent VAT decisions.Andrew NeedhamTribunal says architect's fees for installation of a new lift can be zero-rated The Appellant was a charity providing a permanent residence for the elderly, and had appealed against an HMRC decision that the architect's services relating to the installation of a new lift in a care home did not qualify for zero-rating. HMRC argued that the words ‘in the installation of a lift' ... Continue Reading

The Chartered Institute of Taxation (CIOT) welcomes the Poynter Report that has examined the loss of data by HMRC and recommended ways to prevent a repeat of this.On 20 November 2007, the Chancellor appointed Kieran Poynter, the Chairman and Senior Partner of PricewaterhouseCoopers, to investigate the circumstances that led to the significant loss of confidential personal data on Child Benefit recipients and other recent losses of confidential data and the lessons to be learnt. Kieran Poynter published ... Continue Reading

Mike Clasper, CBE, has been appointed as the new HMRC Chairman.Formerly Operational Managing Director at Terra Firma Capital Partners Ltd, and a former Chief Executive of BAA plc, Mike Clasper will take up his new post on 1 August 2008.This appointment comes from an open recruitment process and with the agreement of the Chancellor of the Exchequer. Mr Clasper's role will be to strengthen HMRC's corporate governance and to provide oversight to the Executive Committee and Departmental ... Continue Reading

A new comprehensive Double Taxation Convention between the United Kingdom and France was signed in London on 19 June 2008 by the Rt Hon Alistair Darling MP, Chancellor of the Exchequer, and Mme Christine Lagarde, the French Minister for the Economy, Industry and Employment.The text of the new Convention can be accessed on the HMRC website. The text will be laid as a Schedule to a Draft Order in Council for consideration by the House of Commons later this year and will then also be available from ... Continue Reading

Martin Mann of Chiltern Tax Support for Professionals Ltd provides an overview of a popular form of approved share scheme, and highlights recent changes to the tax rules.    ChilternIntroductionAn important change is on the way in relation to the use of Enterprise Management Incentives ("EMI"). This change particularly impacts companies that employ more than 250 people. We have identified that companies operating in the leisure, hospitality and retail sectors will be particularly ... Continue Reading

John Andrews of the Low Incomes Tax Reform Group ( www.litrg.org.uk ) points out that a forthcoming change to the time limit for claiming tax repayments could have unfortunate effects for some.Fairness?One proposal lurking in the depths of the 2008 Finance Bill is to reduce the current ‘6 year’ time limit for tax refunds to just 4 years.  If you have been careless with your tax affairs, HMRC can go after you for 6 years of back tax. But HMRC now want to reduce their obligations ... Continue Reading

Steve Allen of VAT Solutions (UK) Ltd offers some useful tips regarding input VAT recovery claims.Steve AllenOwn staffHMRC accepts that supplies that are, prima facie, made to employees, can be treated as if they were supplied to the employer provided the employer meets the full cost, and they have a legitimate business purpose.For example: subsistence costs, removal expenses for staff relocation, and ‘petty cash’ purchases.Self-employed and contractorsThe difficulty comes when you are ... Continue Reading