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The Business Premises Renovation Allowance (BPRA) allows 100% capital allowances to be claimed on the cost of conversion of derelict or unused business premises – dependent upon specific conditions being met. One condition is that relief is only available for renovating or converting disused business premises in what is designated a ‘disadvantaged area’ (as specified in the Assisted Areas Order 2007).    If the conditions are not met or the full allowance not claimed ... Continue Reading

Tax credits claimants are being reminded that they have about one week to renew their claims by the 31 July deadline - or payments might stop. Nick Lodge, Director General of Benefits and Credits, said: “We are asking claimants to renew immediately. The sooner they do, the sooner we can check their payments and avoid paying too little, or too much money, which they then have to pay back.” Tax credits renewal packs have been sent to about 5.8 million people since April. ... Continue Reading

People who receive tax credits must complete the renewals process by 31 July, even if they no longer want to claim or think they are no longer entitled. Introduction  This article by the Low Incomes Tax Reform Group (LITRG) aims to explain what tax credit renewals are, what you need to do by 31 July, and what happens if you are late.   Why renew? Tax credit claims generally only last for one tax year. At the end of each tax year, you need to make a new claim in order ... Continue Reading

  HM Revenue & Customs (HMRC) have announced a new campaign to encourage taxpayers with outstanding tax returns to bring their tax affairs up to date.  But time is short. Introduction The campaign, called ‘My Tax Return Catch Up’, is aimed at taxpayers who have received a self assessment tax return or notice to complete a tax return for tax years up to and including 2011/12, but who have not yet submitted it.   HMRC will also write directly to several ... Continue Reading

LITRG has launched an email help service pilot in partnership with Advice NI offering free guidance about tax and national insurance. Background LITRG has been developing resources that aim to help low income migrants coming to live in the UK, either temporarily or permanently, by explaining their tax obligations and entitlements. This exercise is part of an HM Revenue and Customs (HMRC)-funded project. Email help service for voluntary sector organisations From 22 July 2013 LITRG ... Continue Reading

Tax relief is allowed on interest paid on mortgages/loans taken out to finance the purchase of assets held within a business. Landlords who own two or more properties are deemed to own a ‘portfolio’ of business assets. Lenders have designed products that treat the ‘portfolio’ as one single business account regardless of the number of properties purchased or whether the full amount of capital has been utilised. The individual properties may have separate mortgages each ... Continue Reading

The World According to... GAAR? TW Ed admires the ambition of domestic and international tax lawmakers to combat perceived abuse. Welcome to a brave new world. The Finance Act having received Royal Assent, we are all now subject to the General Anti-Abuse Rule, or GAAR. What that actually means for taxpayers, only time will tell, when the principles have been tested in the tribunals and courts. But it does seem that the vast majority of transactions or arrangements which have a commercial ... Continue Reading

TaxationWeb points out that by law, P11Ds may be filed as late as 19 July without penalty. Many advisers (and no doubt others - particularly those who are longstanding TW readers) will be aware of the quirk in the rules relating to late filing penalties for "Benefit in Kind" Forms P11D. HM Revenue & Customs requires that Forms P11D be submitted by 6 July, or else a penalty may be charged. The key word here is "may". The fact is that penalties will not be charged unless the P11Ds (and ... Continue Reading

LITRG is launching a telephone helpline pilot in partnership with the Migrants Resource Centre offering free guidance about tax and national insurance to low income migrants. Background As part of a project funded by HM Revenue and Customs (HMRC), LITRG has been developing resources that aim to help low income migrants who come to live in the UK, either temporarily or permanently, by explaining their tax obligations and entitlements. LITRG has also recently published a wide range of ... Continue Reading

Expenses incurred in the running of a property business will have been spent in order to generate income and as such can be deducted from income received during the year.    When the letting ceases there will be no income against which relief can be claimed. However, by ensuring that any expense is accrued (allowed) for, tax relief is available – the crucial factor is not when the expense is paid or the date on the invoice but when the need for the expense arose.    Example: Last ... Continue Reading