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Steve Allen, Director of VAT Solutions (UK) Ltd, highlights a further selection of recent VAT decisions.Steve AllenTribunal says supply of room was ancillary to a taxable supply of ‘office services’Pethericks & Gillard (P&G) were a firm of chartered accountants, with four directors, three of whom took an active role in the business. The three active directors all had their own one-man companies that were operating from the same location, with the building in question being owned ... Continue Reading

HMRC have launched an online learning module to raise awareness of the new penalties for errors on tax returns and documents.Referred to as the new penalties for inaccuracies awareness package, the module is being rolled out to 28,000 HMRC staff. Sections covered in the module include:Introduction and overviewLegislation and calculationThe penalty assessment processFurther information. The aim of this e-learning package is to help equip frontline staff, managers, agents and taxpayers with a general ... Continue Reading

Prime Minister Gordon Brown has admitted making "mistakes" in abolishing the 10p rate of income tax. The Prime Minister told the BBC that the government "didn't cover as well as we should have" losses to low earners without children and pensioners aged 60 to 64. But Mr Brown said he was "listening" and "learning" as prime minister.Mr Brown announced the abolition of the 10p starting rate of income tax in his last Budget as Chancellor, in 2007. ... Continue Reading

The Association of Chartered Certified Accountants (ACCA) reminds businesses of the annual PAYE return deadline on 19 May 2008.This year, HM Revenue & Customs is demanding that employers with 50 or more staff must file their 2007/2008 Employer Annual Return PAYE forms (P14s and P35s) on-line or face a penalty of £100.And for those firms with less than 50 employees, the taxman is offering an incentive for this group to file on line by giving them £100 tax free if they submit ... Continue Reading

The Chartered Institute of Taxation (CIOT) has launched a new modular exam structure for the Chartered Tax Adviser (CTA) qualification.The new structure, which begins with the May 2009 examinations, recognises the increasing degree of specialisation within the tax profession, but retains the major benefit of the current system – combining depth of knowledge in specialist areas with breadth of knowledge across the spectrum of taxes.  The Institute has also introduced two e-Assessments ... Continue Reading

HMRC have announced details of a new podcast, which provides information on Child Trust Funds (CTFs).In the latest of HMRC's podcasts, Clare Merrills talks about the Child Trust Fund – the Government’s long-term savings and investment account for children born on or after 1 September 2002.You can listen to the podcast at http://www.hmrc.gov.uk/podcasts/index.htm.  Continue Reading

John Andrews of the Low Incomes Tax Reform Group highlights some issues and anomalies resulting from the abolition of the 10% starting rate of income tax, and the introduction of a 'new' 10% rate for savings income.The strange workings of the new 10% rateThe abolition of the 10% starting rate band was intended to simplify the tax system.But does that claim really bear close scrutiny?When Gordon Brown announced the reduction of the basic rate from 22% to 20%, he also abolished the 10% starting ... Continue Reading

Andrew Needham, Director of VAT Solutions (UK) Ltd, highlights a selection of recent VAT decisions.Andrew NeedhamHigh Court finds partly for HMRC on supply of printed matter for slimming clubsA classic single v multiple supply case, concerning weekly meetings for slimmers, including weigh-ins, and literature provided on initial registration and at those meetings. HMRC had previously allowed output tax to be declared on a proportion of income, but then issued a revised ruling stating that there was ... Continue Reading

HMRC have confirmed that the earnings threshold for taxing certain benefits-in-kind (BIK) will not be raised.HMRC have confirmed that the £8,500 threshold under which 'lower paid' workers are not taxed on certain BIKs will remain unchanged, despite other administrative reforms in this area of taxation.HMRC originally considered removing the threshold as part of a consultation exercise, which will mean employers having to put BIKs and expense payments ... Continue Reading

Chancellor Alistair Darling has told MPs he will act "within this financial year" to answer concerns about ending the 10p tax rate.The main concern is that the withdrawal of the ten per cent tax rate will hit some 5.3 million of the UK's lowest earners and in response to this claim, Treasury committee MPs are to commence a short inquiry to investigate its effect.According to the BBC, the Chancellor made the commitment during a meeting aimed at quelling a rebellion which could see the ... Continue Reading