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TW Ed thinks it is high time HMRC used its vast information powers to help taxpayers to complete their tax returns, as set out in its latest Digital Strategy paper.   Introduction – Digital Revolution Last week, HMRC published its Digital Strategy for 2014 and beyond. Beneath the froth and pratulent images, some good work seems to be in hand. Ordinarily, I’d (literally) fight shy of any publication which suggested that I “Think of it as a journey...” ... Continue Reading

LITRG warns that savers in not-for-profit Credit Unions might need to tell HMRC about untaxed income – the tax position is not the same as interest on more traditional savings accounts. Background In recent times, savers may have turned to not-for-profit Credit Unions as an alternative to mainstream banks and building societies. Some employers are helping employees save for a rainy day by setting up a payroll deduction into a Credit Union savings account. However, savers ... Continue Reading

Better late than never, (Mark will be pleased), something positive to say about HMRC this week.  Strictly, two things, albeit closely related. Firstly, we have the fact that HMRC is postponing RTI filing penalties for another few months until 6 March 2015 for ‘smaller’ employers. Of course I am not referring to the physical size of the employer but the number of employees engaged: fewer than 50. Those employers with 50 or more employees are set ... Continue Reading

LITRG welcomes proposed reforms to reduce administrative burdens for employers, but stresses that HMRC need to explore the knock-on effects for claimants of tax credits, Universal Credit and welfare benefits. Introduction HMRC issued four consultation documents in June 2014 proposing the following changes to the system for employee benefits and expenses: Abolish the £8,500 earnings threshold for benefits in kind, which requires employers to report under two different tax regimes; Create ... Continue Reading

While ‘larger’ Employers with 50 or more employees will still be caught by RTI late filing penalties from 6 October – now less than a month away – employers with fewer than 50 employees will now face automated in-year penalties from 6 March next year, gaining a few months’ extra grace. HM Revenue and Customs (HMRC) will send electronic messages to all employers shortly to let them know when the penalties will apply to them, based on the number of employees shown ... Continue Reading

Tax relief is allowed on interest paid on mortgages/loans taken out to finance the purchase of assets held within a business. Landlords who own two or more properties are deemed to own a ‘portfolio’ of business assets. Lenders have designed products that treat the ‘portfolio’ as one single business account regardless of the number of properties purchased or whether the full amount of capital has been utilised. The individual properties may have separate mortgages each ... Continue Reading

Award-winning programme-maker, Tiger Aspect Productions, is producing a documentary series on tax and they would like to speak to anyone with an ongoing tax problem. Filmed over the course of 2014, the series will follow people as they try to deal with a broad range of tax issues.We are looking to film tax professionals working with taxpayers to resolve their difficulties. Whether there’s a looming Accelerated Payment Notice due, a Working Tax Credit overpayment or Inheritance ... Continue Reading

Private residential landlords can claim an immediate 100% allowance of up to £1,500 per dwelling per tax year, when improvements to the energy efficiency of the property are made. The claim is for: loft insulation; cavity and solid wall insulation; draught proofing; hot water supply insulation; floor insulation. Conditions: The allowance cannot be claimed if ‘rent-a-room’ relief is claimed on that particular property. Not possible ... Continue Reading

HM Revenue & Customs has issued updated guidance for those intending to seek Advance Clearance for a Company Purchase of Own Shares in an unquoted trading company -  see Company Purchase of Own Shares Helpsheet Initial impressions are that this is akin to HMRC's toolkits - generally well intentioned and helpful, although written from HMRC's perspective. It is perhaps also not as comprehensive as some would like but nevertheless may serve as useful aide memoire. Continue Reading

Capital gains tax (CGT) is charged on the net gains (proceeds less cost) made on the sale of assets by individuals, personal representatives and trustees. Companies do not pay CGT but they are charged to corporation tax on net gains made. Charge to CGT A UK resident and domiciled property investor is liable to CGT where: A property is sold at a higher price than the original purchase price wherever situated in the world. A property or part of a property is transferred to an ... Continue Reading