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Matthew Hutton MA, CTA (fellow), AIIT, TEP, Presenter of Monthly Tax Review (MTR), highlights some topical planning issues by James Kessler QC from a recent IBC IHT and Trusts Conference. Matthew HuttonContextThe following points were made in a lecture by James Kessler QC at IBC’s IHT and Trusts Conference in London on 22 May 2008.  Non-UK ‘Close’ CompaniesThe amendment by Finance Bill 2008 of TCGA 1992, s 13 with the introduction of new s 14A has curious consequences.  ... Continue Reading

The Social Security (Contributions) (Amendment No 4) Regulations 2008 (SI 2008/1431) add to the provisions for what constitutes earnings for Class 1 NICs purposes.The Regulations amend the Social Security (Contributions) Regulations 2001 to provide in Great Britain a disregard, in the computation of earnings for Class 1 National Insurance contributions, for any Up-Front Childcare Fund payment.These regulations will come into force on 1 July 2008.Lone parents moving into work often face up-front ... Continue Reading

HMRC have published details of the latest scam they have identified aimed at presuading taxpayers to complete a form revealing their bank or credit card details.HMRC are aware of a number of scams aimed at persuading customers to complete a form revealing their bank or credit card details, on the pretext that a payment of tax will be paid directly into their bank account. HMRC have produced a list of recent fraudulent emails that have been brought to their attention and will update regularly with ... Continue Reading

HMRC have launched their latest podcast.This latest podcast is entitled "What goods are prohibited or restricted when entering the UK?"HMRC customs expert Mark Fuchster explains goods you can, and can’t, bring back from abroad.You can access the podcast on the HMRC website at http://www.hmrc.gov.uk/podcasts/index.htm.  Continue Reading

The provision of payment and deduction details to subcontractors and their agents has become a growing problem for HMRC and subsequently, they have confirmed that they will no longer provide this information on a bulk basis.For a number of reasons, historically, some smaller subcontractors have often failed to keep the records of payments given to them by contractors perhaps because they have lost them or otherwise destroyed them. In addition, some contractors fail to give their subcontractors ... Continue Reading

At the moment, if HMRC make mistakes with a taxpayer’s tax affairs then the taxpayer can claim back taxes (with interest added) for the last 6 years. But now HMRC want to change these rules so that they are only liable for 4 years.HMRC hold a wealth of data about taxpayers on its files, but this is not always married together. When it is married together very often a repayment is shown to be due. This is particularly true with the pensioner population.  John Andrews, Chairman of the Low ... Continue Reading

John Andrews of the Low Incomes Tax Reform Group ( www.litrg.org.uk )investigates whether HM Revenue and Customs' initiative to facilitate contact with them really works. Introduction - The TestHMRC have launched a new part of their website aimed at making contact easier. So how did they do? We tried to find out on behalf of the various groups we aim to represent.We decided to follow the instructions on the website (http://search2.hmrc.gov.uk/kbroker/hmrc/contactus/start.jsp) for a range of potential ... Continue Reading

Mark McLaughlin CTA (Fellow) ATT TEP warns that 'phoenix companies' may not necessarily represent sound tax planning.Capital Gains Tax taper relief disappeared from 6 April 2008. However, it is being replaced by Entrepreneur’s Relief in Finance Act 2008. ‘Phoenix’ companies therefore look set to continue.Mark McLaughlinWhat is a 'Phoenix company'? These are broadly companies which are set up to trade for a limited time period (commonly just over two years, under ... Continue Reading

Steve Allen of VAT Solutions (UK) Ltd reports on another chapter in the long-running VAT saga concerning chocolate teacakes.Steve AllenLong struggle It has taken a 12-year struggle, but Marks & Spencer seems to have finally won its battle with HM Revenue & Customs to recover £3.5m in overpaid VAT on chocolate teacakes. The European Court of Justice has recently ruled in favour of M&S, saying that it should be allowed to claim the VAT back.The fight started in 1994 when M&S made ... Continue Reading

HMRC have published revised advisory fuel rates for company car users, which take effect from 1 July 2008.HMRC have agreed with employers that they should give one month's notice of a change in advisory fuel rates so that they can amend their systems in good time to implement the new rates. Accordingly HMRC have announced new rates now for implementation on 1 July 2008. However, the recent fuel price increases which justify these rate changes have happened very ... Continue Reading