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HMRC have announced details of a tailor-made scheme designed to encourage share fishermen to ensure they put aside enough money to pay their tax bill when it becomes due.Share fishermen, who are classified self-employed by HMRC, usually receive a share of the profits or gross earnings of a fishing boat. They are traditionally paid by cheque and/or cash for every catch without any deductions.The Share Fisherman Scheme enables members set aside 20% of money earned each month from every ... Continue Reading

Mark McLaughlin CTA (Fellow) ATT TEP outlines outlines some recent developments for taxpayers and advisers involving trusts.Mark McLaughlinIntroductionThe tax world invariably seems to move at a rapid pace. The following is a selection of recent developments for practitioners involved with trust work.Trust residenceTrustees are generally treated as a single person for capital gains tax (CGT) purposes (TCGA 1992, s 69(1)). Finance Act 2006 introduced new rules to determine whether trusts are resident ... Continue Reading

Julie Butler, FCA considers the implications of loans in the context of inheritance tax business property relief and otherwise.IntroductionEvery business will have to look carefully at cash flow management throughout its business life, dealing with “Cash Mountains,” controlling distributions and commercial borrowings.  Each individual sole trader, partner, shareholder or investor has to look at their own tax position and this includes inheritance tax relief (IHT). The focus ... Continue Reading

In the third part of a series of notes on the inheritance tax (IHT) treatment of trusts after Finance Act 2006, Matthew Hutton MA, CTA (fellow), AIIT, TEP considers Will Trusts, and particularly immediate post-death interests (IPDIs),trusts for children, alterations of dispositons on death, excluded property settlements, and consequential IHT amendments.     Matthew HuttonWill Trusts: Immediate Post-Death Interests and Trusts for ChildrenImmediate Post-Death Interests The main ... Continue Reading

A quick guide to recent additions to the HM Revenue & Customs website.Week ending 18 MayWhat’s new?New tax repayment form (R40) now available;Guidance on what may constitute an open-ended company in the context of the changes made to the offshore funds regime by Finance Bill 2007, cl. 56 (BN 29);Collection of student loans: annual statements - update for those who have not received a statement from Student Loans Company showing repayments for 2004/05 and 2005/06;Amended version ... Continue Reading

HMRC's 2007 Departmental Report, which details the Department's performance for last year, has been laid before Parliament and subsequently published on their website.For the first time since the creation of HMRC on 18 April 2005, this Report combines the former Spring Departmental and Annual Reports into one document.The report details HMRC's business and operations and how the Department is currently performing against its Public Service Agreement (PSA) targets. These are the operational ... Continue Reading

Further to internal problems with PAYE online, HMRC have confirmed that the filing deadline for 2006/07 end of year PAYE returns will be extended for this year only to 28 May 2007. In addition no penalties will be charged if returns are received later due to "reasons outside your control".In making this announcement, HMRC have apologised for recent difficulties, saying"We know that some agents experienced difficulty sending their clients’ Returns in early May. We are sorry for ... Continue Reading

HMRC have published two further consultation papers, as part of their work to modernise powers, deterrents and the accompanying safeguards.The papers, entitled Modernising powers, deterrents and safeguards: A new approach to compliance checks and Modernising powers, deterrents and safeguards: Safeguards for Taxpayers, are available on the HMRC website (see below for link).The first paper considers options for a new approach to compliance checks, while the second asks for views on the adequacy and ... Continue Reading

New rules designed to help combat money laundering will affect travellers entering or leaving the European Uunion. The EU cash declaration scheme derives from European Parliament and Council Regulation No. 1889/2005 and comes into effect in all EU Member States on 15 June 2007.From that date, people who are either entering the UK from a non-EU country, or are travelling from the UK to a non-EU country and are carrying 10,000 Euros or more (or the equivalent in other currencies) will be required to ... Continue Reading

UK residents who believed they would escape the clamp down by HMRC on unpaid tax on overseas funds by holding the money in a company or trust need to think again, and think quickly, according to PKF accountants & business advisers.In April, HMRC launched a temporary "Offshore Disclosure Facility" to help taxpayers get their tax affairs up to date. Broadly, the terms of the facility are as follows:Those wishing to use the facility should notify HMRC of the intention to make a disclosure ... Continue Reading