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HMRC have announced that there is currently a delay in issuing a cheque for 2006-07 PAYE tax-free payments.Employers have been able to file certain PAYE forms and returns voluntarily via the internet for some years. Electronic filing of PAYE returns will, however, be compulsory for all employers by 2011. To encourage employers to switch to electronic filing sooner rather than later, HMRC have been offering financial incentives annually since 2004-05.The 2006-07 tax free payment of £150 ... Continue Reading

A quick guide to recent additions to the HM Revenue & Customs website.Week ending 3 AugustWhat’s new?Updated version of leaflets WTC5: Help with the costs of childcare - Information for parents and childcare providers, and WCT6: Child Tax Credit and Working Tax Credit - Other types of help you may be able to get;Updated tax credits ready reckoner table;PEP & ISA Bulletin 40;Claiming Gift Aid when goods are sold by, and the proceeds gifted to, charities - guidance for charities considering ... Continue Reading

Matthew Hutton MA, CTA (fellow), AIIT, TEP author of Monthly Tax Review, highlights recent tax issues and planning points affecting trusts.Matthew HuttonBare Trusts: What to do when the child reaches 18  If a sole beneficiary attains 18, he can call for the fund to be transferred to him.  If a joint beneficiary attains 18, he can call for his share of the trust fund to be transferred to him if it is easily divisible.  But this does not apply to land (Crowe v Appleby 51 TC 457) or a ... Continue Reading

Andrew Needham, Director of VAT Solutions (UK) Ltd, highlights practical points on VAT payments and VAT on accountancy fees.Andrew NeedhamHMRC to change the date for when a cheque payment is deemed to be receivedThe introduction of online filing and electronic payment of tax returns and payments, which, for VAT, is scheduled to be phased in from 2010, means HMRC will also realign the effective date for acceptance of payments received by cheque. New regulations will be issued in draft in the Finance ... Continue Reading

Mark McLaughlin CTA (Fellow) ATT TEP  considers potential obstacles to obtaining capital treatment on a company purchase of own shares and reviews company law issues. Mark McLaughlinIt had been on the cards. Martin and Jason requested an urgent meeting with their accountant and tax adviser, Bob. After many years in business together, these clients could tolerate each other no longer. Their body language suggested anger and mutual resentment and their trading company was suffering badly ... Continue Reading

With less than three months to go until electronic filing becomes mandatory for registered pension schemes, HMRC are urging pension scheme administrators to register as soon as possible for online filing.From 16 October 2007, online filing will become mandatory for certain aspects of pension scheme administration. From that date scheme administrators will have to submit the following information electronically to HMRC:applications to register a pension scheme;registered pension scheme returns;accounting ... Continue Reading

HMRC have announced that they are to change the guidance in the Capital Gains manual where a private residence is occupied by dependent relative before 6th April 1988. A private residence occupied by a dependent relative before 6th April 1988 may qualify for capital gains tax (CGT) private residence relief. Guidance on this relief can currently be found in the Capital Gains manual at paragraph CG65550 onwards.Paragraph CG64718 currently explains that in such cases the further relief provided ... Continue Reading

Following the decision given in Jones v Garnett ("Arctic Systems") in the House of Lords on 25 July and subsequent Ministerial Statement, HMRC have now published guidance on how they will deal with cases which were awaiting the outcome of the appeal.On 25 July 2007 the House of Lords gave its judgement in the case of Jones v Garnett (also known as “Arctic Systems Ltd"). HMRC had previously lost this case in the Court of Appeal and as a result had appealed to the House of ... Continue Reading

Following announcements made in the 2007 Budget, HMRC have published a consultation document on proposed changes to the current capital allowances regime.Budget 2007 announced a series of wide-ranging reforms to the structure of business taxation in the UK. Changes to the corporation tax (CT) rate structure and capital allowances regime have been accompanied by an increase in the level of the research & development (R&D) tax credit and the introduction of a new payable credit for ... Continue Reading

The Government has announced details of the UK's treaty negotiating priorities for the year to 31 March 2008.There are currently more than 1,300 Double Taxation Conventions (DTCs) world-wide and the UK has one of the largest networks covering more than 100 countries. The Government reviews the UK's DTC priorities each year to ensure that the treaty network continues to meet the needs of the businesses and individuals receiving income from abroad. HMRC monitors the networks of other countries ... Continue Reading