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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

Mark McLaughlin CTA (Fellow) ATT TEP reports on an encouraging case of 'reasonable excuse' in the taxpayer’s favour. Introduction There are certain ‘let-outs’ from penalties for late payments of tax (under FA 2009 Sch 56), which are potentially helpful for taxpayers. One of these exceptions relates to 'Time To Pay' arrangements with HMRC. Its effect is broadly that if HMRC accepts a taxpayer request for Time To Pay, there is no penalty for late payment in respect ... Continue Reading

Mark McLaughlin thinks that the government should not introduce new legislation without consulting first. In the last few days or so, I've been having a close look at two new anti-avoidance provisions included in Finance Bill 2013. The first concerns Inheritance Tax and deductions for liabilities. The second deals with close companies and tax charges for loans, advances and other transfers of value to participators. Both sets of anti-avoidance provisions were announced at Budget 2013. ... Continue Reading

HM Revenue & Customs (HMRC) will not now be revising the scope and terms of ESC A19 as originally proposed. LITRG welcomes this result of the consultation. Background HMRC published their summary of responses to the consultation on possible changes to the operation of ESC A19 on 9 April 2013. ESC A19 performs a very important function, serving to provide fairness to taxpayers when HMRC have made a mistake. In particular, ESC A19 gives HMRC discretion not to collect arrears of income ... Continue Reading

By taking the lump sum option offered on most personal pension schemes you receive a tax-free lump sum and purchase an annuity with the balance. Because the annuity is taxable whereas the lump sum is not (as long as it does not exceed 25% of the pension fund), you can be considerably better off from a tax viewpoint by taking the lump sum. Example: Upon retirement Alex is offered the choice of: • a straightforward annuity for his pension fund of £100,000 of £6,000 per year, ... Continue Reading

 Mark McLaughlin CTA (Fellow) ATT TEP reports on a recent case highlighting the importance of completing formalities for certain tax purposes. Introduction Running a business generally involves a good deal of administration. This is particularly the case in respect of limited companies, which are subject to company law as well. Of course, for owner-managed and family companies in particular, there is often a tendency for company owners who are busily running the business to overlook ... Continue Reading

TW Ed picks holes in HM Revenue & Customs' draft update on repairs and renewals in its Business Income Manual. It has been a very busy week at TW Towers, trying to keep up with HMRC. There have been numerous press releases – some of them to do with matters other than RTI: Outstanding Class II National Insurance Contributions are to be “coded out” through PAYE from April 2014. This sheds a ‘whole new light’ on last week’s announcement that HMRC ... Continue Reading

HM Revenue & Customs has published further guidance on PAYE Real Time Information and verifying National Insurance Numbers (NINos) at Real Time Information and National Insurance Number Verification Requests (NVRs) and pointed out that NVRs can be operated only AFTER the first Full Payment Submission under RTI. HMRC appears also to have received numerous telephone calls from employees whose employers are insisting on a NINo before they can be paid under RTI. It then goes on to say that its ... Continue Reading

HM Revenue & Customs has issued a new Form P85 Leaving the UK - Getting  Your Tax Right which is supposed merely to update the form for the new statutory basis. The statutory basis is intended to take effect from 6 April 2013, although strictly still subject to the passage of the Finance Bill. As well as notifying HMRC that one is leaving the UK, it can serve to claim an in-year tax repayment. Keen-eyed observers will note that (amongst others) there is a new Question 11 - "Are you resident ... Continue Reading

HMRC issued a consultation document in July last year, proposing to update Extra-Statutory Concession A19. ESC A19 is a potentially very valuable concession which allows (or broadly requires) HMRC to give up tax where it has taken too long to get around to dealing with a taxpayer's information. The proposals in the consultation found little favour amongst tax professionals and other taxpayer representatives.  (See for instance HMRC and the Mysterious "Vanishing" Tax Concession) It seems that ... Continue Reading