Enter Your E-mail

TW Ed finds himself defending HMRC from criticism. Criticism of HMRC came this week from a quite unexpected source: not us – or more specifically, the Local Government Association (LGA), which opened with a press release “Government Urged to Act Over Lost Billions”. I urge those with a sensitive disposition when it comes to poor grammar not to read the article, lest they come away with hackles raised. Having ‘tutted’ my way through the first few paragraphs, ... Continue Reading

HM Revenue & Customs has announced that it has harmonised the two regimes for Non-Statutory (Business) tax clearances, and Non-Business tax clearances into Other Non-Statutory Clearance Guidance - which might lead some to wonder, where is the 'first' Non-Statutory Clearance Guidance, so that this might be 'other' than that? More importantly, practitioners will be well aware of how useful these clearances can be, and that the clearance teams generally provide a helpful ... Continue Reading

There are set rules for use of the ‘Rent-A-Room’ relief scheme: •    It applies if the taxpayer also rents out unfurnished rooms in the same property (e.g. a furnished room is let to a lodger but there is also an unfurnished annex let out separately). •    The taxpayer and lodger must occupy the property for at least part of the letting period in each tax year of claim. •    Where the owner moves into a new property leaving the lodger in occupation, ... Continue Reading

 Mark McLaughlin wonders if HMRC's publicity campaign in pursuit of tax evaders is working. HM Revenue & Customs (HMRC) recently published an updated "rogues' gallery" of its most wanted tax criminal fugitives (HMRC's Most Wanted: Gallery of Tax Fugitives Published as Another Caught). A further ten tax fugitives have been added to the original list of 20 individuals first published a year ago. The updated list has made national news headlines. Unfortunately, the publicity was not altogether ... Continue Reading

Peter Vaines of Squire Sanders comments on the seeming double standards applied by politicians in tax policy, and the new General Anti-Abuse Rule. Tax Incentives You have to laugh. George Osborne says it is important to make the UK competitive to encourage foreign businesses to set up here. So we have a low rate of corporation tax, special tax reliefs for Research and Development expenditure, an even lower rate of tax on intellectual property and so on. This is called a Good Thing. However, ... Continue Reading

Parents on higher incomes who continued to receive Child Benefit after January 2013 have been reminded that they must register for Self Assessment by 5 October 2013 to avoid any penalties in relation to the High Income Child Benefit Charge. This month, HM Revenue and Customs (HMRC) will be writing to around two million higher rate taxpayers, including those affected by recent changes to Child Benefit. The letter reminds them that if their income is over £50,000 and they or their partner received ... Continue Reading

HM Revenue & Customs has published an update on its findings from the trial of the Single Compliance Process, at Single Compliance Process (SCP) - Briefing Paper for Tax Agents. We have previously commented on the SCP and would concur with HMRC that, in principle, "cross-cutting" or working all taxes together should be welcome, as it will reduce the risk of businesses and their agents having to answer the same questions for separate enquiries under separate heads of tax. But it has always ... Continue Reading

The rules of the ‘Rent-A-Room’ relief scheme enable the landlord to prepare the usual income and expenditure accounts and then compare the actual expenses incurred with the Rent-A-Room relief. He can then claim whichever is more beneficial. The comparison can be made year on year and changed to cater for whichever gives the better result. A landlord has up to one year after 31 January following the end of the tax year to decide which option to use. Example: In the second ... Continue Reading

TW Ed worries that HMRC risks losing sight of its core objective in the rush to prove value for money. HMRC recently issued a press release about how HMRC has successfully “protected” over £1billion in tax in the first 6 months of this year by winning numerous tax avoidance cases. While this is laudable, HMRC has thus far omitted to acknowledge the nearly £1billion it had to write off in PAYE tax when preparing for Real Time Information. HMRC clearly believes it has a ... Continue Reading

People who have sold properties which are not their main homes, and have not told HM Revenue and Customs (HMRC) about any profit, have one month left to make use of the disclosure opportunity.                                           HMRC’s Property Sales Campaign is aimed at those selling second homes in the UK or abroad where Capital Gains Tax (CGT) should be paid. It includes properties that were rented out and holiday homes. Taxpayers ... Continue Reading