Enter Your E-mail

HMRC have completed their investigation into the issue of incorrect penalty notices relating to 2006-07 PAYE end-of- year returns.On 4 October 2007 HMRC announced that some employer end-of-year return forms P35 and P14 that were filed electronically, have given rise to incorrect penalty notices being issued to employers.HMRC have now identified the particular employers who were sent a penalty notice by mistake. The error is confined to online returns and mostly affects those sent to HMRC on 17 May. ... Continue Reading

In his first Pre-Budget Report statement, Chancellor Alistair Darling reiterated the Government's continued theme of promoting fairness and opportunity for all.The 2007 Pre-Budget Report and Comprehensive Spending Review sets out the steps the Government is taking to promote employment opportunity for all, tackle child poverty, support families to balance their work and family lives and promote saving and ensuring security for all in old age. These include:ensuring that all married couples and ... Continue Reading

Andrew Needham, Director of VAT Solutions (UK) Ltd, summarises a selection of recent VAT decisions.Andrew NeedhamTribunal says works done on housing plots was part of a single exempt supply of landThe Appellants were farmers in the Scottish Borders who had diversified their activities to include the sale of parts of their land to DIY housebuilders as serviced plots of land. The activity involved employing contractors to undertake preparatory earthworks, and to construct a spine road and associated ... Continue Reading

Robin Williamson looks at the vexed and controversial issue of tax credit overpayments:  how they arise, how they are recovered, and how to challenge them. Robin WilliamsonIntroduction Of the many differences between traditional social security benefits and tax credits, one of the most fundamental is that, in tax credits, overpayments are an integral and unavoidable part of the system. While a benefit claimant's entitlement is generally ascertainable at the time of payment, entitlement to ... Continue Reading

Steve Allen, Director of VAT Solutions (UK) Ltd, offers a VAT tip and a selection of recent VAT cases.Steve AllenVAT TipMoving To New Premises? Make Sure You Tell HMRC Beforehand!When we move premises, we remember to tell the telephone, gas and electricity about it.  However, forgetting to tell HMRC could lead to a lot of unnecessary hassle.  Legally, a business is required to tell HMRC of a change of address within 30 days, so what can happen if it forgets or chooses not to do this?  ... Continue Reading

Matthew Hutton MA, CTA (fellow), AIIT, TEP, author of Monthly Tax Review, highlights an unexpected and controversial HMRC view on interests in possession.Matthew HuttonContext: the legislationIHTA 1984, s 53 is headed ‘exceptions from charge under s 52’, viz charge on termination of interest in possession (IIP).Section 53(2) provides that tax shall not be chargeable under s 52 (except in the case mentioned in sub-s 52(4)(b)) if the person whose interest in the property comes to an end ... Continue Reading

A quick guide to recent additions to the HM Revenue & Customs website.Week ending 5 OctoberWhat’s new? Inheritance Tax - the file and save and integrated account versions of form IHT200 worksheet have been amended due to a calculation error at box WS20;HMRC staff survey results;Tax Law rewrite of corporation tax - Draft clauses and explanatory notes on intangible fixed assets and film production and sound recordings have been published for public consultation;Updated list of PEP and ... Continue Reading

The Chancellor of the Exchequer, Alistair Darling, will present the 2007 Pre-Budget Report and the outcome of the Comprehensive Spending Review to the House of Commons on Tuesday 9 October.The Chancellor had informed the House on 25 July 2007 that he would be making a single statement in October, so the announcement made today (5 October) comes as no surprise and is not indicative of the call for an early general election.Speculation within the tax profession suggests that tax increases for non-domiciles ... Continue Reading

HMRC have identified that some employer end-of-year return forms P35 and P14 that were filed electronically, have given rise to incorrect penalty notices being issued to employers.The penalty notices in question are dated 24 September 2007.HMRC are urgently investigating and will provide an update as soon as possible, and by Tuesday 9 October at the latest.Initial findings are that significantly fewer than 8% of all penalties are affected and HMRC are arranging for the penalties issued in those cases ... Continue Reading

Accountants and employers should be aware that there is an error in the paper version of HMRC booklet CA 33(2007): Class 1A National Insurance contributions on Car and Fuel Benefits.The same error is on the Employer’s CD-ROM. The internet version of the booklet was corrected earlier this year. This error will be corrected when the CA33 (2008) is published. The error appears in the table in section 43 'Cars with a CO2 emissions figure first registered on or after 1 January 1998 only: ready ... Continue Reading