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HM Revenue and Customs (HMRC) has secured its eighth tribunal win in a row against tax avoidance schemes run by NT Advisors. Between them, HMRC’s court successes against NT Advisors have now protected over £750 million in tax, defeating five of the promoter’s schemes. Among them is the Working Wheels scheme, where participants claimed to be second-hand car dealers. In this latest case, the Upper Tribunal dismissed NT Advisors’ latest appeal that a scheme which used ... Continue Reading

HMRC bypassing the courts to collect tax and tax credit debt would be contrary to the rule of law and would inflict disproportionate financial and human cost on vulnerable taxpayers. Introduction The Low Incomes Tax Reform Group (LITRG) has published its comments in response to the Government’s consultation on Direct Recovery of Debt. These include:   In support  LITRG has no sympathy with those who can well afford to pay their tax debts in full and on time but who ... Continue Reading

The ideal in IHT lifetime planning would be for the donor to gift the main residence out of the estate but at the same time remain living there. However, the ‘gift with reservation of benefit’ (GWRB) rules do not allow a simple transfer of a whole or even part of a property to another whilst the donor remains in residence (i.e. ‘reserves a benefit’). If such a transaction takes place the property is treated as remaining within the donor’s estate on death.   With ... Continue Reading

HM Revenue and Customs (HMRC) is today giving around 16,000 tax avoidance scheme users the opportunity to pay the tax they owe or risk facing bigger tax bills and heavy legal costs. The total amount of tax owed by these users is estimated at £430 million. On average, each of the users of the contractor loan schemes covered by this settlement opportunity owes £11,000 a year in tax. The schemes, used by a small minority of contractors to avoid paying their fair share, involve ... Continue Reading

With the tax credits renewal deadline just one week away, HM Revenue and Customs (HMRC) is reminding claimants to renew or face losing their payments. More than 865,000 claimants have still not yet renewed their tax credits. They have until 31 July to do so, or their payments might end. Last year more than 650,000 people failed to renew on time. This year, for the first time, claimants can renew online at Renew Your Tax Credits Online, as well as being able to renew by post and phone. ... Continue Reading

HMRC has today announced that up to a million claimants have yet to renew their Tax Credits claims, with a week to go before the normal deadline. Tax Credits claimants should generally renew their claim by 31 July in order to preserve their entitlement. Remember that the renewals process also finalises 2013/14, as well as validating the current year claim - failure to renew will result in HMRC asking for all tax credits paid since April 2014 to be repaid. Some claimants will have received ... Continue Reading

Many small businesses are run from home and a proportion of the costs associated with running and maintaining a home can be deducted in computing the profits of the business. The fixed costs associated with a home are incurred regardless of whether there is any business use of the property. These include rent, mortgage interest, insurance, council tax and general repairs. Where a part of the house is set aside specifically for business use, a proportion of the fixed costs can be deducted ... Continue Reading

HM Revenue and Customs’ High Net Worth Unit – a specialist division which deals with the tax affairs of the UK’s wealthiest individuals – has brought in £1 billion in compliance yield. The unit, which was set up in 2009, deals with the tax affairs of the 6,200 wealthiest individual customers of HMRC – those with a net worth of £20 million or more. Customers are assigned a relationship manager who has detailed oversight and develops a close understanding ... Continue Reading

Anthony Margaritelli, chairman of the ICPA, wants everyone to send HMRC one message regarding its proposals to take funds directly from people’s bank accounts:  “No”! (Click Here for Tony's Video Blog) 29th July is a very important date. Why? You may ask.  Well, the answer is that it is the closing date for responses to HMRC’s consultation on the proposals for the direct recovery of debts or, to put it ... Continue Reading

Where a business is based at home or at another property owned by the director personally, it is possible to extract profits in the form of rent paid for the use of the home office or other premises. Although the rent is taxable in the hands of the director, there is no NIC to pay. Further, the company can deduct the rent in computing its taxable profits for corporation tax purposes. If the director/shareholder has losses from other property rentals, paying rent will enable those losses ... Continue Reading