14/04/2007, by Julie Butler, FCA, Tax article - Business Tax
Julie Butler, FCA examines Companies Act 2006, and considers some of the potential implications for small businesses. The Companies Act 2006 – The ‘Modernisation’On 8 November 2006, Parliament enacted the Companies Act 2006. The content is based on the recommendations of the Company Law Review Steering Group, Modern Company Law for a Competitive Economy, published in July 2001 and the White Paper, “Modernising Company Law” published in July 2002. The group ... Continue Reading
14/04/2007, by Matthew Hutton MA, CTA (fellow), AIIT, TEP, Tax article - Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
Matthew Hutton MA, CTA (fellow), AIIT, TEP, comments on practical issues concerning inheritance tax reporting requirements for joint property.ContextIn their April 2006 Newsletter HMRC explained that they were receiving an increasing number of IHT 200s that were not fully completed. HMRC told agents that they were responding to this by retaining the D18/Inventory until a complete account was delivered. The most common problem with the IHT 200 is that full information on joint assets is ... Continue Reading
14/04/2007, by Steve Allen, Tax article - VAT & Excise Duties
Steve Allen, Director of VAT Solutions (UK) Ltd, considers the effect of VAT changes on medical services.IntroductionThe new rules on VAT exemption for medical services have finally been announced by HMRC, and will take effect from 1 May 2007. The changes come as a result of the ECJ’s decision in Dr Peter D’Ambrumenil (C-307/01), which held that ‘medical care’ is defined as those services intended principally to ‘protect, maintain, or restore’ the health ... Continue Reading
13/04/2007, by Sarah Laing, Tax news - Income Tax
The tax credit regulations have been amended with effect from 6 April 2007 to remove entitlement to Working Tax Credit (WTC) from those serving a custodial sentence. Child Tax Credit continues to be available to those prisoners who meet the eligibility criteria.The regulations now make it clear that any work done by a prisoner, either within prison or outside prison on licence, is not ‘qualifying remunerative work’ for tax credit purposes income received for any work done, either ... Continue Reading
12/04/2007, by Sarah Laing, Tax news - VAT & Excise Duties
Further to the introduction of new anti-avoidance rules to tackle carousel fraud, HMRC have published Brief 36/07, which gives details of a revised Statement of Practice on VAT input tax deduction where there is no valid VAT invoice.Once published, the revised Statement of Practice, which replaces the July 2003 publication, should be read by all taxpayers dealing in any of the goods subject to widespread fraud and abuse, namely:computers and any other equipment, including parts, accessories ... Continue Reading
11/04/2007, by Sarah Laing, Tax news - Income Tax
HMRC have published details of the new Income Tax Act 2007 (ITA), which came into force on 6 April 2007.ITA rewrites most of the remaining income tax provisions in the Income and Corporation Taxes Act 1988 (ICTA). Both the Income Tax Earnings and Pensions Act 2003 (ITEPA) and the Income Tax Trading and Other Income Act 2005 (ITTOIA) feed into the core provisions rewritten in ITA (for example into the calculation of income tax liability in Part 2 of the new Act) and together they complete the ... Continue Reading
11/04/2007, by Sarah Laing, Tax news - Business Tax
All contractors and subcontractors in the construction industry are obliged to comply with the rules governing the new Construction Industry Scheme (CIS), which came into force on 6 April 2007.Under the Scheme, all payments made from contractors to subcontractors must take account of the subcontractor’s tax status as determined by HMRC. This may require the contractor to make a deduction, which they then pay to HMRC, from that part of the payment that does not represent the cost of materials ... Continue Reading
10/04/2007, by Sarah Laing, Tax news - HMRC Administration, Practice and Methods
According to HMRC “production issues” have caused delays in sending out self-assessment tax returns this year. However, there will be no corresponding extension of filing deadlines.Returns are normally sent out in batches from 6th April onwards. However, this year, it is anticipated that 90% of taxpayers can expect their main SA return (SA100) by 19 April, with the remainder being received by 24 April 2007. 80% of taxpayers scheduled to receive the SA short return (SA200) will have this ... Continue Reading
06/04/2007, by Bob Fraser MBE, MBA, MA, FPFS, TEP, Tax article - Savings and Investments, Pensions and Retirement
Bob Fraser MBE, MBA, MA, FPFS TEP outlines possible solutions to the financial problems faced by companies on the death or retirement of a director shareholder, and their tax consequences.IntroductionCompanies may face major problems on the death or retirement of a shareholding director if funds are not immediately available to purchase the holding of the outgoing director. The following is a guide to a suggested solution that uses life assurance policies written in trust. The policies will provide ... Continue Reading
06/04/2007, by Steve Allen, Tax article - VAT & Excise Duties
Steve Allen, Director of VAT Solutions (UK) Ltd, comments on the timetable for the mandatory online filing and payment of VAT returns.IntroductionFollowing the merger of the Inland Revenue and HM Customs & Excise to form HM Revenue & Customs (‘HMRC’), it quickly became evident that the online services of the two former departments needed reviewing and bringing together under common systems.It is targeted for the new systems to come online in 2010, although based on pass experience, ... Continue Reading
