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TWEd is unsure that HM Revenue & Customs is behind the new Annual Investment Allowance transitional rules... Well, that’s another tax return filing season over – with HM Revenue & Customs giving itself a big pat on the back that a record number of people filed their tax returns on time. Personally, I preferred the old regime where there would be no penalty if there were no tax due at the end of January. It just seems “wrong” that the penalty can now exceed someone’s ... Continue Reading

The new Machine Games Duty, or MGD, is applied to games machines from 1 February and applies basically to all games machines where the player stands to win back a cash prize of more than the money "staked". All affected licence holders should now be registered, and HM Revenue & Customs may charge penalties if they are not. While the MGD is generally charged at 20% - just like VAT - it is not a "taxable supply" for VAT purposes but exempt, meaning that affected operators may now struggle ... Continue Reading

Money is tight as a student and every little counts, so LITRG is supporting NASMA’s Student Money Week from 11 to 15 February, asking students to check their taxes. Background Each spring, the National Association of Student Money Advisers (NASMA) runs a ‘National Student Money Week’. This year it runs from 11 to 15 February. The aim of the week is to increase awareness of the hard work done by Student Money Advisers in colleges and universities across the country and ... Continue Reading

People on low incomes are losing out because they are not able to get the forms and information they need to receive bank and building society interest without tax deducted. Introduction An investigation by the Low Incomes Tax Reform Group (LITRG) of bank and building society branches and websites found that fewer than one in ten was able to provide account holders with all the information they need to receive interest gross of tax. The results of the investigation are detailed in ... Continue Reading

One of my grandmother’s favourite sayings (particularly on the rare occasion she beat my grandfather at a game of draughts!) was: “It’s no good getting old if you don’t get artful”. And of course she was right – we all pick up a few tricks and skills throughout our lives which serve us well. Lessons are learned along the way. But when it comes to tax, precisely the reverse is true. Throughout our working lives, most of us in employment are shielded to a ... Continue Reading

Using the Chancellor's own figures, the new increase in Annual Investment Allowance seems to be aimed at a very small number of businesses. TW Ed considers the numbers... The significant increase in the Annual Investment Allowance (AIA) announced in the Chancellor's 2012 Autumn Statement will have been welcome news for many businesses. From 1 January for the next two years to 31 December 2014, up to £250,000 per year of eligible capital expenditure can secure immediate 100% tax relief. Both ... Continue Reading

Is a penalty always due if the taxpayer's agent has made a mistake? Mark McLaughlin CTA (Fellow) ATT TEP highlights mixed fortunes for taxpayers in two recent tax cases. Introduction The advice given by tax practitioners will invariably have an impact on their client’s tax return. Every practitioner hopes that their tax advice will be correct 100 per cent of the time. But what would happen if incorrect tax advice resulted in an error in the client’s tax return? Would the ... Continue Reading

The new Machine Games Duty is a brand new tax and not just a replacement for VAT on games machines. Rob McCann of the VAT people explains the potential VAT costs thanks to the new tax. Introduction A new tax is rarely cause for celebration but the new Machine Games Duty (MGD) may prove particularly expensive for VAT purposes. MGD replaces Amusement Machines Licence Duty from 1 February 2013 and VAT will not be due on takings from the same date, for those machines within the new regime. Which Machines ... Continue Reading

Proposals to continue the simplified PAYE scheme for care and support employers until April 2014 are welcome but they do not cater adequately for those employers not currently within it. Background Real time information, or RTI, is a new way to report PAYE information to HMRC. It will be mandatory for most employers from April 2013. Under RTI, information about tax and other deductions are collected and transmitted to HMRC every time an employee is paid (on or before the date of payment). ... Continue Reading

HM Revenue & Customs (HMRC) announced a new Settlement Opportunity for Participants in Tax Avoidance Schemes early last week.  It had been trailed for some time beforehand. HMRC said, “...we are inviting some participants in certain schemes to settle their tax liabilities by agreement, without the need for litigation. We believe that this settlement opportunity offers both the taxpayers and HMRC the best opportunity to resolve these disputes in a way which is cost-effective and ... Continue Reading