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Sovereign governments around the world are no longer prepared to see their revenues eroded by tax evasion in recognised tax havens, according to the ACCA.US tax authorities say they are looking into more than 100 accounts held by Americans in tax haven Liechtenstein. At least nine nations are now examining tax evasion related to the principality of Liechtenstein after a massive investigation by German prosecutors. Following the UK's tax authority admission that it had paid an informant ... Continue Reading

HMRC have published Brief 10/08, which highlights changes in the tax rules where companies use derivatives or borrowing to hedge foreign exchange exposure arising from holding shares in an overseas subsidiary, or similar assets.A company that has invested in an overseas business (or a UK business that operates in a different currency) will be exposed to foreign exchange movements. It will often borrow in foreign currency, or use currency derivatives, to hedge that exposure. Statutory Instrument 2004/3256 ... Continue Reading

The HMRC Tax Law Rewrite project, which is modernising UK direct tax law so that it is clearer and easier to use, has published a draft of its fifth Bill. In a written statement to Parliament the Financial Secretary to the Treasury, Jane Kennedy MP, said: "I am pleased to tell the House that Her Majesty's Revenue & Customs will shortly publish a draft of the Tax Law Rewrite project's fifth Bill, the Corporation Tax Bill, which is the first of two Bills which will rewrite substantially ... Continue Reading

Taxpayers who did not pay their tax bill for 2006/07 by 31 January 2008 can expect a further penalty charge on 28 February.Thursday 28 February is the date when people are charged an automatic 5% surcharge on top of the amount still owing, plus additional interest payments, warns ACCA (the Association of Chartered Certified Accountants).Chas Roy Chowdhury, head of taxation at ACCA, says: “31 January isn’t just about sending your tax form in on time; it’s also ... Continue Reading

Mark McLaughlin CTA (Fellow) ATT TEP reports on the second consultation concerning HM Revenue & Customs' tax payment failities and tax debt management. Mark McLaughlin'Missing' measuresA second round of consultation on modernising HMRC’s payment services and debt management ends on 6 March 2008. This follows on from the original consultation document, ‘Payments, Repayments and Debt: The Developing Programme of Work’, which was published on 25 June 2007.  The ... Continue Reading

Andrew Needham, Director of VAT Solutions (UK) Ltd, highlights some useful HMRC guidance for businesses and their advisers when registering for VAT. Andrew NeedhamIntroduction At the beginning of December 2007, HMRC posted the following guidance on its website in relation to the completion of VAT1 registration forms.  Presumably, the tips are intended to work in tandem with HMRC’s ongoing drive to reduce the length of the much-publicised delays in the registration process. Box 1 - ... Continue Reading

Michael Thomas, Barrister, considers the impact of recent changes to the tax system on tax litigation, reviews some recent important direct tax cases affecting small and medium sized enterprises, and looks at how tax litigation may develop in the future. IntroductionThe purpose of this article (Which is based on a talk I gave for Longmark Conferences on 18 November 2007, which was aimed at SMEs: the cases discussed reflect that bias) is to try and identify, with reference to some recent cases, ... Continue Reading

Andrew Needham, Director of VAT Solutions (UK) Ltd, continues his report on a selection of recent VAT cases.Andrew NeedhamTribunal say adminstering of drugs to patients in own homes is a zero-rated supplyThis case considered the VAT liability of the Appellant’s supplies, which comprise the administration by nurses of drugs prescribed for patients, to those patients in their own home.  The Appellant said it made zero-rated supplies of goods, and as such, could reclaim all of its input tax. ... Continue Reading

HMRC Customer Relations Managers (CRMs) are now available for tax advisers in four new locations.Last year HMRC introduced a pilot for Agent Account Managers in Edinburgh and Ipswich as part of a drive to improve access for tax advisers to HMRC services. Since a considerable amount of contact so far has been on processing issues, HMRC have now appointed CRMs to provide the same service on a pilot basis, in four of the largest PAYE and SA Processing locations around the country.The agent CRM role ... Continue Reading

The procedure for starting and stopping student loan deductions is to change from 6 April 2008.Currently, employers are required to start making student loan deductions from relevant employees on the first pay day falling 42 days or more after the date of issue shown on the HMRC Start Notice, form SL1. They should also stop deductions on the first pay day falling 42 days or more after the date of issue of the Stop Notice, form SL2. From 6 April 2008 the law is changing and the 42 day lead-time ... Continue Reading