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HMRC’s telephone lines are often busy, especially in the run-up to ‘peak’ tax return filing time – 31 January. If you are struggling to get through, read LITRG’s hints and tips. Background Problems getting through to HMRC by telephone seem to make a regular appearance in the news, and recent reports from the BBC and Which? reinforce concerns raised by the Low Incomes Tax Reform Group (LITRG) earlier this year. The peak season In the run-up to 31 ... Continue Reading

A property deal is termed as being made at ‘arm’s length’ if it is a normal commercial transaction between two or more persons. A transaction not likely to be at arm’s length is one undertaken by persons related by blood, adoption or marriage, or who are living together. HMRC requires a valuation of property if the transaction has not been made at ‘arm’s length’. The valuation will determine the market value and that is the figure that will be used ... Continue Reading

This week, we are delighted that James Bullock of Pinsent Masons has some sympathy for HMRC, dealing with the Tax Tribunal backlog, but reckons they could have done more to help themselves - and taxpayers. Record Tribunals Backlog We recently announced that the backlog of tax disputes waiting to be heard has reached a new record high with a particular surge in the number of high value cases lodged with the Upper Tribunal. 27,246 cases were waiting to be heard ... Continue Reading

LITRG warns that a new test to be applied to working tax credit (WTC) claimants who are self-employed is potentially discriminatory against disabled claimants. Introduction HMRC have announced in the draft Finance Bill that self-employed WTC claimants who earn less than the equivalent of 24 hours per week at the national minimum wage will be required to provide evidence to HMRC that their work is “genuine and effective” in order to qualify for WTC. While the Low Incomes Tax ... Continue Reading

LITRG welcomes the Autumn Statement announcement of an increase in the Carer’s Allowance earnings limit from April 2015, and that it will be easier to apply for Carer’s Allowance. Introduction The Carer’s Allowance earnings limit will increase from £102 to £110 per week, meaning more carers will have the opportunity to work part-time and still be eligible for Carer’s Allowance. In addition, applying for Carer’s Allowance over the Internet will be easier. Earnings ... Continue Reading

Where the property business of a sole trader or partnership has ceased, a post-cessation relief allowing offset against current income may be available where, within seven years of the business ceasing, the taxpayer is required to make a ‘qualifying payment’, or a ‘qualifying event’ has occurred in connection with the ceased business. ‘Qualifying payments’ include the remedying of defective work and legal expenses in connection with such defects, or ... Continue Reading

LITRG considers the Chancellor of the Exchequer’s Autumn Statement: most economic indicators are improving, but the deficit – while lower than forecast – still remains high, and austerity is set to continue. Introduction Those with incomes just above the tax threshold will benefit in a small way from some of the tax cuts on offer, and small businesses may benefit from the review of business rates and other measures. However, as the welfare state (aside from the state ... Continue Reading

TW Ed summarises some of the key points from the 2014 Autumn Statement The Chancellor’s Autumn Statement had a few surprises – some welcome, some not. Of course, for most of the announcements, we are still waiting for detailed legislation to consider the finer detail – although legislation was published today for some of the headline developments. SDLT Savings - Almost certainly the most eye-catching and probably the most welcome development was the re-working of SDLT to make ... Continue Reading

A CGT charge may arise on the disposal of land. In order to calculate the capital gain or loss arising, a valuation is required where:   the land was owned at 31 March 1982 (in order to determine the ‘base cost’ of the property); the disposal was a bargain not at ‘arm’s length’; the disposal was to a connected person;  there is a part disposal of the land and the usual part disposal basis is applied, which requires a valuation of the ... Continue Reading

LITRG message to all those starting up a new business and would-be entrepreneurs – pay attention to your tax and accounting responsibilities. Background On 6 December, the UK will be celebrating Small Business Saturday in recognition of all those who help to promote economic growth, innovation and development through their micro-organisations, and bring wealth to the community. Help for small businesses This is your opportunity to promote your business and also to get support ... Continue Reading