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Mark McLaughlin thinks HMRC deserves credit for its handling of the implementation of Real Time PAYE Reporting. HM Revenue & Customs (HMRC) issued a press release on 2 May regarding the new PAYE reporting system, real time information (RTI) (RTI: One Million Schemes Use New PAYE System). The press release headline proudly boasted: "One million schemes use new PAYE system". As an aside, HMRC's press campaigns really make me smile at times - reading that headline at face value suggests ... Continue Reading

Over one million employer PAYE schemes have started to report Pay as You Earn (PAYE) in real time since it was launched last month, HM Revenue and Customs (HMRC) announced on 2 May. The new PAYE reporting system, known as Real Time Information (RTI), started on 6 April 2013. Under RTI, employers report PAYE in real time from their first pay day on or after 6 April each time they pay their employees, rather than yearly. Ruth Owen, HMRC’s Director General Personal Tax, said: “RTI ... Continue Reading

HM Revenue & Customs has long been criticised for failing correctly to notify a taxpayer's agent or accountant, when opening an enquiry - particularly under the new "Single Compliance Process". While the Single Compliance Process (SCP) will be seen by many as a welcome improvement, in that it aims to tailor the enquiry process to the taxpayer - if less work is needed then this is identified early and should result in a relatively short (and therefore less costly) enquiry openly ... Continue Reading

HMRC has issued an update on its "signposts" or standard letter headings, which it hopes that tax agents and advisers will use, in the hope that this will improve the allocation of post to the correct department - headings are set out below - the primary headings cover the main issue while secondary headings help to identify more specific aspects, or where technical input may be required. Primary level headings Secondary level headings Agent ... Continue Reading

LITRG Chairman Anthony Thomas recently spoke at a seminar hosted by the Bingham Centre for the Rule of Law on the subject of the rule of law in tax. Background The Bingham Centre for the Rule of Law is an organisation inspired by the late Lord Bingham, who is described on the Centre’s website as “the pre-eminent judge of his generation and a passionate advocate of the rule of law”. Tax and the rule of law The LITRG Chairman’s speech focused on three Bingham ... Continue Reading

After many years’ campaigning for HMRC helplines to be less costly for low-income callers, LITRG welcomes HMRC’s announcement that all four helplines will change to 0300 numbers with immediate effect. Introduction LITRG has long campaigned for HMRC to offer telephone helplines that do not result in disproportionate charges for the most vulnerable in society. HMRC’s announcement that all four helplines for Child Benefit, Guardian’s Allowance, Employers and Online ... Continue Reading

TW Ed picks holes in the PAC's concern over external tax experts advising HMRC. Well, I imagine you'd be disappointed if I were NOT to mention the Public Accounts Committee's report Tax Avoidance: The Role of Large Accountancy Firms, and the media frenzy which ensued. I think it rare that I find myself on 'the same side' as Treasury Minister Mr. David Gauke, but it seems he has retained a sensible perspective and refused to condemn the secondment of tax experts from "The Big 4" to HMRC. ... Continue Reading

Tax Credit customers are being reminded by HM Revenue & Customs (HMRC) that they must renew their claims by 31 July – or their payments might stop. HMRC will start sending Tax Credit renewal packs to about 5.8 million people from this week until the end of June. They are urged to act as soon as they receive a renewal pack. More than 3.7 million claimants renewed by the deadline last year, 90 per cent of those who were required to renew their claim. HMRC is also asking claimants to ... Continue Reading

Capital allowances augment a loss. In certain circumstances it may be better not to claim the allowances as this may preserve personal allowances. This strategy will allow higher allowances to be claimed in later years when profits are higher. Example: Polly makes a loss of £18,000 in the second year of her business. The loss includes capital allowances of £8,000. She has other income of £20,000 in the same year. By not claiming capital allowances, the loss is reduced to £10,000. ... Continue Reading

HM Revenue & Customs has published an update on its website, Online Filing of Company Tax Returns: Two Years On. It starts off by acknowledging “this was a considerable challenge for all concerned”. (At this point, one might wonder what descriptions will be used two years on from the mandatory introduction of Real Time Information). It goes on to confirm that there will be no major change to the iXBRL tagging requirement this year but that it will introduce a new taxonomy for the ... Continue Reading