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HMRC Acting Chairman Dave Hartnett has issued a letter clarifying some issues regarding the current Residence and Domicile Consultation.The letter, which has been posted on the HMRC website is reproduced as follows:"RESIDENCE AND DOMICILE CONSULTATIONThe Government’s consultation on changes to the tax rules on residence and domicile closes on 28 February. In the meantime, there are 4 issues that have been raised, where I want to make clear what the Government’s intention has always ... Continue Reading

The Chartered Institute of Taxation (CIOT) has welcomed government clarification concerning foreign domiciliaries (non-doms), which should help advisers to advise their clients on the impact of the proposed legislation due to take effect from 6 April 2008.  The CIOT believes that the new announcement in the form of a letter from Dave Hartnett, HMRC acting Chairman, is certainly a step in the right direction. The Institute had serious concerns about retrospection, ... Continue Reading

A 47 year-old Brixham fisherman has been jailed for nine months, suspended for two years, at Exeter Crown Court for his failure to report income of £113,989 as a self employed share fisherman over a 6 year period. He was also given a 100 hour community service order.Mark Atkinson, who had previously been employed as a fisherman on a PAYE basis, was aware that deductions of tax and national insurance had to be made from any income he received as an employee or self employed share fisherman. ... Continue Reading

Matthew Hutton MA, CTA (fellow), AIIT, TEP, presenter of Monthly Tax Review, reports on the Government's recent announcement of a new Capital Gains Tax (CGT) relief, and provides some observations on the CGT landscape based on proposed changes to the regime.    Context1. The Chancellor announced on 24 January, a new relief (‘entrepreneurs’ relief’) from CGT for gains arising on the disposal of a business. The relief2. The relief will take effect from 6 April 2008 alongside the CGT reform ... Continue Reading

Andrew Needham, Director of VAT Solutions (UK) Ltd, reports on a selection of recent VAT cases.Andrew NeedhamTribunal finds services of UK actress were ‘supplied where preformed’ (Round 1!)In what has been described as a test case for the acting profession, this dispute concerned the correct place of supply analysis of an actress taking part in the making of a film. The facts related to the making of the film ‘Perfect Creature’, described as a vampire action movie, where the ... Continue Reading

Peter Arrowsmith FCA highlights a seclection of NIC matters, and provides a timely tip for employers and employees in view of the forthcoming increase in car fuel benefit.National Insurance Contributions BillThe Bill was considered in Committee on 15 January. After a witness session in the morning with Treasury and HMRC officials, a mere 91 minutes in the afternoon enabled the Bill to be reported without amendment. During the morning the Financial Secretary to the Treasury, Jane Kennedy, admitted ... Continue Reading

Self assessment taxpayers and agents authorised to act for them, can now change contact details online on the HMRC website.From 6 February 2008, trusts, partnerships, individuals and agents authorised to act for them online, can use the links within the ‘About your organisation’, ‘About you’ or ‘About your client’ pages.Trusts and their authorised agents can:change their main, communication and trade address;change the capacitor address (when a user has someone ... Continue Reading

The Chartered Institute of Personnel and Development (CIPD) believes that small businesses need extra financial help in the form of tax relief if the government’s latest plans for the expansion of apprenticeships are to be met.Whilst the CIPD welcomed the government’s new initiative to recruit 90,000 additional 16 to 19 year olds as apprentices by 2013, it also pointed out that SMEs, which provide the majority of apprenticeships, often lack the financial support needed to run such training. ... Continue Reading

HMRC have established a new specialist unit to deal with most claims for film tax relief (FTR).Since 1 January, the new Manchester Film Tax Credit Unit has been dealing with the corporation tax affairs of most companies eligible for FTR.Cases that are being dealt with by Large Business Service (mainly those which are part of larger groups) will continue to be dealt with there. In addition, where an enquiry into a claim was already underway before 1 January 2008, the existing office may continue to ... Continue Reading

HMRC have published a new Business Leasing Manual, covering the leasing of plant and machinery, lease accounting, and the sale of leasing companies.The manual provides guidance on the taxation of leasing transactions, particularly those involving plant or machinery. In common with many other aspects of taxation the taxation of many leasing transactions depends wholly or in part on the accounting treatment. The manual therefore gives guidance on lease accounting but it does not ... Continue Reading