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LITRG argues that Government proposals to outlaw ‘exclusivity’ in ‘zero hours’ contracts and increase transparency fail to grasp what is actually needed to bring sustainable protection for low-paid workers.  Introduction In responding to the recent consultation by the Government on the use of ‘zero hours’ contracts, LITRG have drawn attention to the ways in which such contracts interact with the employees’ tax, NIC position, related tax ... Continue Reading

LITRG considers how the lowest paid stand to gain least in the Budget proposals aimed at helping people keep more of what they earn and save.   Introduction For individual taxpayers, the cornerstone of the Chancellor’s 2014 Budget speech was ‘hard-working people [keeping] more of what they earn and more of what they save’. A few measures, such as the further increase in the personal tax allowance, are a step towards the former objective for some; the latter is well served ... Continue Reading

  HMRC – Holding on to YOUR Money – Again? Withholding PAYE refunds: does HMRC now think the principle of unjust enrichment should apply beyond VAT? While still fuming over the seemingly perennial issue of intolerable delays to CIS refunds, I was passed a letter originating from those wonderful people at HMRC’s NIC & EO office, which reads broadly as follows: “I can see that there is an overpayment of PAYE tax ... Continue Reading

Grant Thornton's review of the 2014 Budget The battle for talent Mr Osborne announced that figures released on Budget Day showed the fastest fall in the youth unemployment claimant count since 1997. Specifically in relation to apprenticeships, Mr Osborne stated:  "To make sure we give young people the skills they need to get good jobs in this modern world, we’ve doubled the number of apprenticeships and I will extend the grants for smaller businesses to support over 100,000 more. And ... Continue Reading

  Works in a similar fashion to the Basic Rate Tax Relief mechanism for personal pensions or Gift Aid: pay in £0.80 for every £1 and the government will contribute £0.20 to the pot. Unlike with personal pensions or Gift Aid, there appears to be no Higher Rate relief to claim through Self Assessment. For each child, the maximum government contribution is £2,000 – meaning that parents will have to pay in £8,000 per child to maximise the ... Continue Reading

HMRC have placed a range of 20 Toolkits on their website which highlight common errors that have come to HMRC’s attention and include steps that can be taken to reduce those errors.   The Toolkits are updated every year and comprise a checklist, explanatory notes and links to further guidance on the topics. Whether to use the Toolkits or not is entirely voluntary. The one specifically written on property is the ‘Property Rental Toolkit’ but the following are relevant ... Continue Reading

The Independent Newspaper has reported that it expects the 2014 Budget is likely to result in even more people being "eligible" to pay the 40% tax rate, thanks to an anticipated below-inflation 1% rise in the Higher Rate Threshold. Continuing to maintain the Threshold, or to raise it only slightly, is projected to drag a further 400,000 taxpayers into the 40% net - a total of 1.1 million since 2010, according to the newspaper, reporting on research by the Institute for Fiscal ... Continue Reading

If you rent out a property, which was at one time your PPR, you will qualify for the lettings relief. This can be worth up to £40,000 against the gain realised on the disposal of a property. Note that this relief is per person, so if property is held jointly it can attract up to £80,000 relief. Unrepresented taxpayers frequently miss this relief from their calculation of the chargeable gain on a property where they could have claimed it. Example: John and Mary sell their ... Continue Reading

TaxationWeb wonders if the government should encourage HMRC to sign up to the Prompt Payment Code. I read an article in Taxation Magazine recently, on a topic which we at TW Towers feel quite strongly about, so I thought I should share. The article – “Out of Control” by Alex Byrne – rings true. I have, in fact, started many a conversation with HMRC officers in the last few years, along the lines of Alex’s opening sentence, “Many years ... Continue Reading

HMRC is reminding taxpayers and agents that claims to "Fix the Protection" for pension funds with values in excess of the reduced Lifetime Allowance (soon to be reduced from £1.5 million to £1.25 million) must be submitted by 5 April 2014. There is an online application form in order to submit a claim; there are of course significant restrictions on any further pension savings which can be made if Fixed Protection is granted. Further information can be found ... Continue Reading