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HMRC have published a reminder to companies that claims to Research & Development (R&D) tax relief for accounting periods ending before 31 March 2006 must be made by 31 March 2008.R&D tax relief allows companies to claim an enhanced deduction in respect of qualifying R&D expenditure. The amount of the enhancement depends upon the size of the company but generally small and medium companies can claim a 150% deduction and large companies can claim 125%, in respect of qualifying expenditure. ... Continue Reading

A further round of podcasts are now available on the HMRC website.The new podcasts for November 2007 are as follows:Listening to Agents - As HMRC's conversation with tax agents continues, David Prever puts more questions to Dave Hartnett.Tax Credits:  What to do when your circumstances change - HMRC's Clare Merrills explains why it is important for people receiving tax credits to tell us when their circumstances change.Small Businesses:  Getting in touch with HMRC - Business ... Continue Reading

Mark McLaughlin CTA (Fellow) ATT TEP explains why forthcoming tax changes may result in pitfalls and potential tax liabilities.Mark McLaughlinOne Budget or two?It seems to be the Government’s policy these days to announce important tax changes on at least two separate occasions each year. The Spring Budget has been the traditional time for new tax rules. However, in recent years the Pre-Budget Report has also been used to announce forthcoming tax changes, although often with effect from the ... Continue Reading

Steve Allen, Director of VAT Solutions (UK) Ltd, highlights ongoing VAT compliance difficulties with HM Revene & CustomsSteve AllenRegistration delaysDespite its best intentions to improve matters, HMRC continues to inflict long delays on businesses applying for VAT registration. In the worst cases, some businesses could fold as a result of lost turnover or delayed VAT repayments.An announcement at the beginning of November from Jayne Kennedy, Financial Secretary to the Treasury, confirmed what ... Continue Reading

Matthew Hutton MA, CTA (fellow), AIIT, TEP presenter of Monthly Tax Review (MTR), reports two potential Inheritance Tax planning arrangements.Matthew HuttonContextThe following two strategies were suggested by Chris Whitehouse at a Conference on 21 June 2007.  Family debt arrangementFamily debt (or ‘IOU’) arrangements continue to be attractive for Inheritance Tax (IHT) purposes, so long as the debt is not settled. For example, Mr A sells the shares in his investment company to his ... Continue Reading

HMRC have confirmed that Dave Hartnett will act as HMRC chairman following the sudden resignation of his predecessor Paul Gray over the loss of two disks containing personal information on 25 million child benefit recipients.Dave Hartnett is a familiar face to accountants, with over 30 years experience in the tax department. He started working for the Revenue in 1976 and spent a decade in investigations work before becoming director of the department's claims branch in 1991. By 1998 he was director ... Continue Reading

The Chartered Institute of Taxation (CIOT) has issued a statement expressing appreciation for the work former HMRC Chairman Paul Gray undertook during his time in office.Mr Gray resigned on 20 November following an annoucement that two computer discs holding the personal details of all families in the UK with a child under 16 had gone missing. The CIOT is naturally deeply concerned about the implications of missing data, which it sees as a vital cornerstone of the UK's ... Continue Reading

HMRC have publsihed guidance on the VAT treatment of insurance introductory services following the VAT tribunal decision in InsuranceWide.com Services Ltd (InsuranceWide).In this case the tribunal found that certain internet services provided to insurers and brokers in connection with the arranging of insurance policies do not fall within the exemption for insurance related services provided by insurance brokers and agents and are liable to VAT at the standard rate.The decision confirms HMRC’s published ... Continue Reading

HMRC chairman Paul Gray has resigned following an announcement that two computer discs holding the personal details of all families in the UK with a child under 16 have gone missing.The Child Benefit data on the missing discs includes name, address, date of birth, National Insurance number and, where relevant, bank details of 25m people. In an emergency statement to MPs, Chancellor Alistair Darling apologised for what he described as an "extremely serious failure on the part of HMRC ... Continue Reading

The Chartered Institute of Taxation (CIOT) has launched its new-look website.Chris Jones, Chairman of the CIOT’s Website Committee, says: “Websites are crucial in how an organisation communicates to its stakeholders.”  The website’s new look is designed so that CIOT Members, students, prospective students, those in need of tax technical information and people seeking the advice of a Chartered Tax Adviser can find what they are looking for in a quick and easy way.Chris ... Continue Reading