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Disabled people who take on a carer or personal assistant now have access to additional information and support, as LITRG launches an enhanced version of the Disability Tax Guide website.  Introduction The website, written and published by the Low Incomes Tax Reform Group (LITRG) and supported with funding from HM Revenue & Customs (HMRC), provides information, help and resources for disabled people taking on a personal assistant. It has been enhanced to coincide with a series ... Continue Reading

NRLS) requires that where there is no UK-based representative/agent, the rent being paid directly to a landlord who lives outside of the UK, the tenant must deduct basic rate tax from the rent paid and pay the tax to HMRC on a quarterly basis. •    The calculation is of tax on the gross amount actually payable to the landlord (plus any payments made by the tenant where the payment is not a deductible expense). •    Tenants do not have to operate the scheme if the rent ... Continue Reading

The Low Incomes Tax Reform Group (LITRG) fears that the Department for Work and Pensions’ proposal to introduce charges for its Child Maintenance Service will increase childhood poverty. Introduction The Department for Work and Pensions (DWP) has announced plans to start charging all couples for its Child Maintenance Service through ‘stronger enforcement’. Up until now its services have been free and have enabled parents – mainly mothers – to claim ... Continue Reading

Inheritance tax is essentially a voluntary tax, in that with proper planning there is no need for your estate to pay any tax on your death. One of the most useful tools is the potentially exempt transfer, or PET. Under the PET rules any gift made to an individual is exempt from inheritance tax if you survive seven years from the date of the gift. If you die before seven years have elapsed, the amount charged to tax is calculated on a sliding scale, with a lower amount being taxed the longer ... Continue Reading

The LITRG welcomes HMRC’s introduction of a Tax helpline to support people affected by the flooding. Introduction Over the past few weeks the weather has dominated the headlines and there has been no shortage of news reports covering the effects on the UK of the wettest January since 1766.   Dedicated tax helpline In response, HMRC have set up a dedicated helpline that will ‘enable anyone affected to get fast, practical help and advice on a wide range of ... Continue Reading

LITRG alerts taxpayers who missed the Self Assessment deadline of 31 January that there could be circumstances constituting ‘reasonable excuse’ for filing their tax return late that mean no penalty applies.  Background Taxpayers were required to file their tax returns for 2012/13 by 31 January 2014 in order to avoid a late penalty of a minimum of £100. However, there are certain situations where individuals, who could be unaware that they have the right to claim ‘reasonable ... Continue Reading

The ‘wear and tear’ allowance can only be claimed on rental property let furnished when it includes such items as a cooker, fridge, sofa, etc. The allowance cannot be claimed on unfurnished or partly furnished properties. The claim is an annual allowance calculated as 10% of the net rental received after deducting any costs paid for by the landlord which are normally the tenant’s burden – such as council tax. Example: John lets out a fully furnished property ... Continue Reading

The Telegraph has reported (EU to Force Britons to Publish Details of Wills and Property) that the scope of an EU anti-money-laundering bill has widened to include Trusts, which may require the formal registration of Trust assets, for potential scrutiny by any member of the public. The bill is apparently due to be voted on tomorrow. Trusts are, of course, a largely Anglo-Saxon device, and widespread in the UK (and America) but very much less so in the wider EU. Common examples are jointly-held ... Continue Reading

HM Revenue and Customs (HMRC) has today launched a new telephone helpline – 0800 904 7900– for anyone affected by the recent floods. The helpline will enable anyone affected to get fast, practical help and advice on a wide range of tax problems they may be facing.  HMRC will also:                                        agree ... Continue Reading

HM Revenue and Customs (HMRC) has today announced that there will be a staggered start to the introduction of Real Time Information (RTI) penalties. [Many readers will be aware that there are already measures in place for smaller businesses – see also RTI: Package of Help for Micro Businesses Operating PAYE in Real Time ] The new automatic in-year PAYE penalties for late filing and late payment and in-year interest (charged on tax and National Insurance Contributions (NICS) that are ... Continue Reading