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Mark McLaughlin CTA (Fellow) ATT TEP comments on HM Revenue & Customs' proposals in its consultation document on tax debts. Mark McLaughlinRadical reformsHM Revenue & Customs (HMRC) have released proposals for a radical reform of the law and practice in relation to the collection of tax debts. Some of the tax collection statistics in HMRC’s consultation document make interesting reading, and perhaps underline the reason for future reforms:£200 billion is paid each year ... Continue Reading

A quick guide to recent additions to the HM Revenue & Customs website.Week ending 13 JulyWhat’s new? Taxation of small pensions: HMRC has discovered that PAYE is not being operated correctly on some small pensions. This guidance advises on the action they are taking to correct it and who may be affected;HMRC 2006-2007 Accounts and accompanying news release;Child and working tax credits error & fraud statistics; andConsultation on proposed changes to the intrastat survey.HMRC Manuals ... Continue Reading

HMRC have published details of proposals to change the scope of the existing IHT excepted transfer and excepted settlements regulations so that fewer returns will need to be submitted. The Finance Act 2006 changed the inheritance tax (IHT) rules for some kinds of trusts, which in turn, means that more transactions involving trusts have to be reported to HMRC. In response to this increase in internal administration, HMRC have looked at the rules for these reports and concluded that they can be changed ... Continue Reading

HMRC have announced increases in interest rates for quarterly instalment payments and early payments of corporation tax not due by instalments, in respect of accounting periods ending on or after 1 July 1999.These new rates of interest take effect from 16 July 2007.The rate of interest charged on underpaid instalment payments of corporation tax increases from 6.50 per cent to 6.75 per cent. The rate of interest on overpaid instalment payments of corporation tax, and on corporation tax paid early ... Continue Reading

HMRC is urging employers and individuals who have set up their own pension scheme to check who their pension scheme administrator is, and make sure they are aware of their responsibilities. Anyone who has set up their own scheme using an insurance company, bank or other provider, needs to be aware that the provider may not be the legal scheme administrator - it could be the employer or the individual who set up the scheme.All pension schemes must have at least one scheme administrator, ... Continue Reading

In an open letter to the new Chancellor of the Exchequer, the Chartered Institute of Taxation (CIOT) has called for urgent attention to be given to the extreme complexity of the UK's current tax system.Whilst the CIOT understands that a full-scale review and simplification of the entire tax system would be a long-term project, it also believes that many of the suggestions now being made to the new Chancellor Alistair Darling, would provide some welcome relief to many taxpayers who have to cope ... Continue Reading

Agents are being encouraged to email their questions for Dave Hartnett, Director-General (Business) about HMRC’s recent initiatives to engage with tax advisers.Questions received will be put to Mr Hartnett during an interview, which is to be featured in the Department’s next set of podcasts in early August. In April this year, HMRC launched podcasts to explore new ways to communicate with key audiences. Dave Hartnett’s podcast will answer some of the profession’s most frequently-asked ... Continue Reading

Arthur Weller and Amer Siddiq of Property Tax Portal describe five potentially simple ways for buy-to-let investors to reduce their income tax liabilities.1. Look to claim costs as ‘Revenue’ costsIf you can claim large costs as ‘revenue’ costs rather than ‘capital’ costs then you can reduce your annual property income tax bill in a big way.Sometimes it is easy to determine whether a cost is of a capital nature or not. For example, if you have had a new conservatory ... Continue Reading

Matthew Hutton MA, CTA (fellow), AIIT, TEP, Editor of Monthly Tax Review, highlights some topical inheritance tax issues affecting trusts. Matthew HuttonContextThe following were among some interesting points made at the 7th Annual LexisNexis Tolley Tax Planning with Trusts Conference 2007 in London on 16 May 2007.Termination of interest in possession and reservation of benefitThe introduction by FA 2006 of section 102ZA into FA 1986 was intended to prevent (especially, but not only, in a Will trust) ... Continue Reading

Andrew Needham, Director of VAT Solutions (UK) Ltd, reflects upon the VAT changes announced earlier this year.Andrew Needham1. VAT registration thresholdsThe VAT registration and deregistration turnover thresholds have been increased (with effect from 1 April 2007) as follows:VAT registration threshold = £64,000 (up from £61,000);VAT deregistration threshold = £62,000 (up from £59,000) CommentFor the first time in several years, the thresholds are increasing by more than inflation, ... Continue Reading