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HMRC have published details of a new dialogue process they intend to use when undertaking enquiries.Following a period of consultation HMRC have recognised the need to improve communication, particularly where additional burdens may be felt by taxpayers and their agents as a result of a formal enquiry into tax affairs. Proposals are currently being tested for a different approach to communication during a formal enquiry under a new policy called ‘Openness and Early Dialogue’. ... Continue Reading

Jim Yuill of Chiltern highlights differences in the tax and NIC treatment of entertainers. Despite the fact that one of the key aims of HMRC is to align the PAYE and NIC rules, there are still a lot of differences. None more so than where the Social Security (Categorisation of Earners) Regulations 1978 come into play. These little known regulations look at certain activities and determine whether we have employment or self-employment and, where appropriate, who is the secondary contributor for NIC ... Continue Reading

Matthew Hutton MA, CTA (fellow), AIIT, TEP, author of Monthly Tax Review (MTR), highlights HMRC's view on the application of Inheritance Tax Business Property relief in a group context.  Matthew HuttonContextPaul Preston at Friend LLP has drawn to my attention a particular analysis by HMRC of the effect of IHTA 1984, s 105(3) in the Shares Valuation Manual at SVM 27610.Group situations: what the SVM saysSubject to the paragraphs below relating to s 111, the only grounds on which relief may ... Continue Reading

Mark McLaughlin CTA (Fellow) ATT TEP highlights the forthcoming changes to penalties for incorrect tax returns.Mark McLaughlinFoul play The Government is keen to deter ‘foul play’ by taxpayers. Changes to the law will affect taxpayers who submit incorrect tax returns to HM Revenue & Customs (HMRC), through the introduction of a new penalty regime. The new rules are wide ranging, and will not only affect individuals, trustees or partnerships who file self assessment returns, but ... Continue Reading

A quick guide to recent additions to the HM Revenue & Customs website.Week ending 26 OctoberWhat’s new?Reminder that HMRC are no longer issuing copies of their Stamp Duty Land Tax CD-Rom;Child Trust Fund (CTF) consultation - HMRC are seeking views on the CTF account opening process, and in particular on the requirement that providers receive the child’s voucher before they can open the account;Updated income tax and pre-owned assets guidance;Reminder that from April 2008, HMRC will ... Continue Reading

Regulations have been laid before Parliament, which reduce the appropriate percentage for calculating company car benefits by 2 per cent, where the car runs on E85.ITEPA 2005, Part 3, Chapter 6 prescribes that the cash equivalent of a company car benefit is calculated as the list price multiplied by the appropriate percentage. The Car Benefits Regulations (SI 2005/2209) provide an added incentive to choose cars powered by alternative, environmentally friendly fuels. Under those Regulations, company ... Continue Reading

Regulations come into force on 14 November 2007, which set out how an election for the inheritance tax (IHT) treatment of pre-owned assets should be made.Finance Act 2004, Schedule 15, provides for income tax to be charged on the benefit people gain, in certain circumstances, from the continuing enjoyment of assets they formerly owned (known as "pre-owned assets"). As an alternative to the income tax charge, Schedule 15 also provides that the former owner may elect that the assets in question ... Continue Reading

The Forum of Private Business (FPB) is warning the Government that giving smaller firms extra capital allowances for investing in plant and machinery will not compensate for recent tax increases.The FPB is responding to the Government's consultation on the administration of capital allowances, which it hopes will encourage businesses to invest more money in capital.In his final Budget as Chancellor, in March 2007, Gordon Brown announced plans to allow businesses to write-off 100% of the first ... Continue Reading

The Chancellor, Alistair Darling has met with representatives from British businesses to respond to mounting protests that proposed capital gains tax changes will add 8% to entrepreneurs' tax bills when they come to sell their business.The meeting was held in response to a joint letter sent to the Treasury by the Confederation of British Industry, British Chambers of Commerce, Institute of Directors and Federation of Small Businesses, in which they complained that the scrapping ... Continue Reading

A quick guide to recent additions to the HM Revenue & Customs website.Week ending 19 OctoberWhat’s new?new Inheritance Tax (IHT) form D21, application for an Inheritance Tax reference;update to the income tax rates and allowances page to reflect the Government's announcement of the personal allowances for 2008-09;draft Stamp Duty Land Tax (Zero-Carbon Homes Relief) Regulations 2007 and draft explanatory memorandum;details of changes to stamp duty and stamp duty reserve tax intermediary ... Continue Reading