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HM Revenue & Customs is keen to ensure that people who may be affected by the new High Income Child Benefit Charge register for Self Assessment by 5 October. Why? Because those who are liable, are at risk of a financial penalty if they “fail to notify” HMRC that they are caught by the new High Income Child Benefit Charge (HICBC). TaxationWeb’s Mark McLaughlin observed: “To an extent, you have to sympathise with HM Revenue & Customs. They know that it ... Continue Reading

Although you have until 31 January after the end of the tax year to file your Tax Return, if you file it online by 30 December and the amount of tax that you owe is less than £3,000, you can have the tax you owe collected through your PAYE code, rather than having to pay it in one go by 31 January.   This has considerable cash-flow advantages.   Example: Adam files his Tax Return online on 15 December. He pays tax at 40%. He owes tax on income of £1,800 and chooses to have ... Continue Reading

Although you have until 31 January after the end of the tax year to file your Tax Return, if you file it online by 30 December and the amount of tax that you owe is less than £3,000, you can have the tax you owe collected through your PAYE code, rather than having to pay it in one go by 31 January.   This has considerable cash-flow advantages.   Example: Adam files his Tax Return online on 15 December. He pays tax at 40%. He owes tax on income of £1,800 and chooses to have ... Continue Reading

TW Ed wonders how much 17th century thinking guides today's tax policy. Jean-Baptiste Colbert, 17th century French finance minister, is reported to have advised, "The art of taxation consists in so plucking the goose as to obtain the largest amount of feathers with the least possible amount of hissing" This maxim appears still to hold good – or at least to guide the thinking of the tax authorities. Consider the rise of the so-called “stealth” taxes ... Continue Reading

TW Ed hopes that the debate on tax policy may have progressed a little, thanks to Panorama. I must admit that I watched last night’s Panorama – Tax, Lies and Videotape, expecting it to be trash – thanks in no small part to the BBC’s “hype” of the programme in the days running up to it - more on that later. (At this point I’d get out of the way, that the BBC seems now recovered from its own dalliances in saving itself oodles of NIC and other employer ... Continue Reading

Suggestions •    Gift the property and then pay full market rent to live there. The gift will be a potentially exempt transfer (PET) for IHT purposes; income tax on the rent will be paid by the donee. •    Mortgage the house, giving away the proceeds or invest the money in assets that potentially do not attract IHT, for example AIM shares. After two years, the investments will qualify for 100% relief from IHT and the mortgage will reduce the value of the house for IHT purposes. ... Continue Reading

The Department for Work and Pensions is apparently weighing up its options having lost four "Bedroom Tax" cases at the First Tier Tribunal. Now, we first have to recognise that we know about tax, whereas the “Bedroom Tax” is, strictly, a restriction of Housing Benefit. So it is not really a tax, as such. But then, nor is it a “Spare Room Subsidy”, as the government would prefer it be known.   Nomenclature aside, it will almost certainly ... Continue Reading

TaxationWeb's Mark McLaughlin points out that, yet again, HMRC has avoided proper consultation, this time on new IHT rules for debts, with inevitable consequences. HMRC recently published a document 'Treatment of Liabilities for Inheritance Tax: HMRC Response to Comments on Schedule 36 Finance Act 2013', regarding anti-avoidance provisions in respect of deductions for liabilities for Inheritance Tax purposes. The document points out: "HMRC received a number of comments ... Continue Reading

The LITRG is urging tax credit claimants to check their 2012-13 final award notices carefully in order not to lose their right to challenge any overpayments. Background HMRC have introduced two new changes that affect anyone wanting to dispute a tax credits overpayment. Claimants now only have three months to dispute any overpayments and HMRC will no longer stop recovery of an overpayment whilst they consider a dispute. Tax credit overpayments have been the most problematic part ... Continue Reading

One of the most difficult issues for employers dealing with the new “Real Time Information” reporting for PAYE is that they are required to make their online returns to HMRC “on or before” payment – in other words, either simultaneously or beforehand. Employers, agents and professional bodies have long warned that this is all but unworkable for many businesses, particularly those which pay shift workers or casual labour out of normal business hours, such as in ... Continue Reading