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Mobile phone firms have lost a legal battle to reclaim tax they said they paid for expensive licences in the UK.The European Court of Justice (ECJ) has ruled that telecommunications firms such as Vodafone and Orange did not pay VAT when they bought 3G licences for new phone services from the Government. The Court subsequently ruled therefore, that such firms were not entitled to tax refunds of some £3.3bn (4.9bn euros). The auction of 3G spectrum, which enabled firms to offer video and internet ... Continue Reading

HMRC have extended their online services for companies and their agents.From 27 June 2007, companies will be able to use online services to: change a company name (unincorporated companies only);change a company address (unincorporated companies only);add or change contact details;add or delete communication details; andadd/change/delete an agent (companies only).All features except 'add/change/delete an Agent' are available to companies and authorised agents acting on their behalf. ... Continue Reading

HMRC have published a consultation document, which sets out a series of options for improving payment methods for taxpayers and modernising debt management operations.The consultation paper forms part of HMRC's work to modernise its powers, deterrents and the accompanying safeguards. Comments are invited on a range of ideas to make it easier for taxpayers to pay on time and improve the way HMRC deal with those who do not. The consultation document seeks views on how HMRC might address the following ... Continue Reading

A quick guide to recent additions to the HM Revenue & Customs website.Week ending 22 June  What’s new? Working Together - Issue 27;Discussion document entitled Taxation of the foreign profits of companies;HMRC Brief 46/07, wihch contains an article on marine voyages relief and the treatment of diving clubs;SDLT newsletter 18;Tax Law Rewrite – rewrite of corporation tax (Bill 5) - draft clauses and Explanatory notes on derivative contracts have been published for public consultation;Details ... Continue Reading

Matthew Hutton MA, CTA (fellow), AIIT, TEP, Author of Capital Tax Review,  highlights a potential problem for investors in residential property. ContextMatthew HuttomThe new Contruction Industry Scheme (CIS) commencing on 6 April 2007 has been well publicised.  While there is an exemption for owners having work carried out on their own homes, there is no such exemption for other residential property: a catch therefore!  Long-term investors will not need to register unless they fall ... Continue Reading

Mark McLaughlin CTA (Fellow) ATT TEP highlights some of the complexities of settlor-interested trusts when it comes to tax compliance. IntroductionMark McLaughlinIt is commonly thought that trusts in which the settlor can benefit (ie actually or potentially) are a ‘bad thing’. In fact, this is not always the case. For example, if the capital gains of a discretionary trust are attributed to the settlor under TCGA 1992, s 77 (ie. including where a dependent child of the settlor can benefit), ... Continue Reading

Andrew Needham, Director of VAT Solutions (UK) Ltd, outlines a recent change in the fight against VAT carousel fraud.Introduction  Andrew NeedhamOn 21 March 2007, HM Revenue & Customs (HMRC) issued Revenue & Customs Brief 24/07 confirming that the long-awaited Missing Trader Intra-Community (MTIC) reverse charge accounting requirement would be introduced from 1 June 2007.  The Brief gives further information on the reverse charge, including the goods to which it will apply, and ... Continue Reading

HMRC have published two consultation documents aimed at enhancing the way transfer pricing enquiries and rulings, and clearances, are dealt with.The consultation document entitled HMRC approach to transfer pricing for large business looks at:ways in which HMRC can better target  transfer pricing enquiries and focus on the right issues;resolving transfer pricing enquiries faster, with an 18 month completion timetable as the norm; anddevoting more resources to transfer pricing with more specialist ... Continue Reading

The Government has tabled a new clause to Finance Bill 2007, which introduces an anti-avoidance measure concerning the deductibility of certain management expenses.The new rule introduces an anti–avoidance measure into ICTA 1988, s 75 (Expenses of management: companies with investment business). It is based upon the principle that relief for “expenses of management” should only be available where a company has incurred genuine expenditure in the course of managing its investment ... Continue Reading

From December 2007, most professional advisers offering advice to the public will need to be supervised by an approved regulatory body, or risk breaking the law, warns the Association of Chartered Certified Accountants (ACCA).The Money Laundering Regulations 2007 will insist that practicing accountants, and many other types of professional adviser, be monitored to ensure they are complying with their responsibilities under anti-money laundering regulations. All the leading accountancy bodies, such ... Continue Reading