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Tolley's Practical Tax by Barry Stocks and Irit HerzenshteinBarry Stocks and Irit Herzenshtein review VAT developments involving Charities.There have been a number of VAT developments over the last 18 months that are important to charities. On the positive side, these developments include new opportunities to recover VAT where HMRC had previously held that there was no recovery, while on the negative side there is the likelihood of additional VAT costs being incurred in the future. In this article, ... Continue Reading

Brass Tax by BKL TaxBKL Tax point out anomalies in the tax deductibility of training costs.Dass v Special Commissioner and others [2006] All ER (D) 152 (Oct)The recent High Court case of Dass underlines the anomalies which exist in the area of training costs. BackgroundMr Dass was a self-employed tutor of English and, broadly, educational adviser. He undertook (as a student) a two-year course in law. He failed to get tax relief for the cost which was held to be capital in nature on first principles, ... Continue Reading

VAT Voice by Steve AllenA selection of recent VAT cases, reported by Steve Allen, Director of VAT Solutions (UK) Ltd.VAT Tribunal says football club has no right to deduct vat incurred on agent feesThe Tribunal has found for HMRC in the long-awaited test case of whether the VAT paid on fees to players’ agents in football transfers, where the purchasing club pays the fee, is input tax of that club (a similar case involving Glasgow Rangers was pulled at the eleventh hour by HMRC in 2005 - the view ... Continue Reading

TaxationWeb by Peter Arrowsmith, FCAPeter Arrowsmith, FCA highlights a potential dilemma for those individuals considering the payment of Class 3 National Insurance contributions.Class 3 NICClass 3 contributions have been in the news lately. For those who don’t know, current rules require specified amounts of earnings or NIC credits in 90% of the years in a persons working life in order to get a full rate state pension. The working life is currently therefore 44 years for men and 39 for women for ... Continue Reading

Monthly Tax Review by Matthew Hutton MA, CTA (fellow), AIIT, TEPMatthew Hutton MA, CTA (fellow), AIIT, TEP author and presenter of Monthly Tax Review, reports some interesting suggestions from IBC’s fifth Private Client Tax Conference in London following the FA 2006, Schedule 20 changes regarding trusts.ContextIBC’s 5th Private Client Tax Conference in London on 26 September 2006 threw up a number of interesting suggestions. Interest in possession trusts: creating Transitional Serial Interests ... Continue Reading

VAT Voice by Andrew NeedhamAndrew Needham, Director of VAT Solutions (UK) Ltd, explains how voluntary VAT registration can work to the trader’s advantage.Common mistakesWe all know that registration for VAT is compulsory when the annual turnover, calculated to the end of any month, exceeds the registration threshold currently £61,000. The cumulative or rolling 12-month turnover should be carefully monitored, so that registration can be sought at the right time. However, a common mistake is either ... Continue Reading

Taxation by Mark McLaughlin CTA (Fellow) ATT TEPMark McLaughlin CTA (Fellow) ATT TEP, General Editor of TaxationWeb, considers how an apparent change of approach by HMRC in enquiry cases may strain relationships with tax advisers.I was chatting to an accountant friend of mine the other day about enquiry work. The accountant (let’s call him John Smith) was lamenting how the approach of tax inspectors had changed over the years. He gave an example of how an old, experienced local Inspector of Taxes ... Continue Reading

Capital Tax Review by Matthew Hutton MA, CTA (fellow), AIIT, TEPMatthew Hutton MA, CTA (fellow), AIIT, TEP author of Capital Tax Review, considers the mechanics of tax compliance for trustees and settlors.ContextWith regard to the FA 2006 change to TA 1988 s 686(2)(b), the effect is that, whereas before 2006/07 the trustees’ liability to the rate applicable to trusts would not apply to income of a settlor-interested trust, it now does. The question therefore is how things work out in practice. The ... Continue Reading

VAT Voice by Andrew NeedhamAndrew Needham, Director of VAT Solutions (UK) Ltd, outlines current HMRC practice on dealing with ‘uncapped’ VAT claims.Three-year cappingThe latest chapter in this long-running saga was the recent issue of Business Brief 13/06 by HMRC, which set out their current position in the ongoing challenge to the UK’s three-year cap for input tax and output tax claims. In the Brief, HMRC accept that the current position following the Court of Appeal’s decision in Fleming, ... Continue Reading

Tolley's Practical Tax by Matthew Hutton MA, CTA (fellow), AIIT, TEPMatthew Hutton concludes his series of articles on the taxation of trusts following Finance Act 2006 by considering the circumstances in which trusts of one type or another might be used tax efficiently.This is the final article in our three part series. The first part considered the income tax and capital gains tax (CGT) treatment of different types of trust. Part two reviewed the inheritance tax (IHT) implications of the three ... Continue Reading