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Taxes Management Act 1970 (early doors) requires a Self Assessment Return (of whatever flavour) to be submitted unto HM Revenue & Customs if a "notice to file" a return is issued. Such a notice can be in the form of a standalone letter, or the tax return itself, which effectively incorporates the notice in its opening text. To be fair, HM Revenue & Customs (HMRC) has for many years allowed taxpayers not to file a tax return when there has essentially been nothing to return. (Such as when ... Continue Reading

TW Ed forecasts a year full of acronyms for taxpayers and practitioners as the High Income Child Benefit Charge (HICBC) slowly, ominously, shudders to hideous life... A belated Happy New Year to all TW readers. We at TW have had an interesting year, to be sure. Succinctly, silence is not always golden. Or even remotely desirable. But we cannot dwell overlong on the past, since there is much to do in the present, and much more to come. To add to Mark’s forecast of interesting ... Continue Reading

The Low Incomes Tax Reform Group (LITRG) has responded to an EU Commission Consultation on the legislation relating to reduced rates of VAT. Another way to put this might be that LITRG is trying to make sure that people don't have to pay a further 14% on their fuel bills in the next few years... It would perhaps be fair to say (but then perhaps not too loudly) that the UK is fairly generous when it comes to its use of exemptions and the reduced rates of 0% and 5% VAT. Many mainland European ... Continue Reading

LITRG has responded to the European Commission consultation on applying reduced rates of VAT stressing the important role these play in taking care of the more vulnerable members of society.   Background VAT is fundamentally an EU-designed tax, so it is within the remit of the European Commission to look closely at the use member states make of reduced rates of VAT. In the UK and some other countries, reduced rates of VAT are used as a way of keeping down the cost of goods and services, ... Continue Reading

As many as 50,000 businesses that have failed to submit VAT returns will be targeted by HM Revenue and Customs (HMRC) this month with warnings that their tax affairs will be closely scrutinised. Each month, more than 600,000 businesses are required to submit VAT returns and most do so on time. But in a new campaign some 50,000 will be warned that, from 28 February, their tax affairs will attract greater attention. The VAT Outstanding Returns campaign is aimed at businesses that have one ... Continue Reading

Gaming machine operators have until 11 January to register for a brand new tax, Machine Games Duty, (MGD), which will come into effect from 1 February and applies where the player can win a cash prize greater than the cost to play. It will replace VAT (on net takings) and Amusement Machine Licence Duty (an annual charge). It will apply to machines in: Bookmakers Amusement arcades Bingo halls Casinos Pubs, clubs and other venues HM Revenue & Customs has ... Continue Reading

Julie Butler asks if the current generous tax reliefs for Inheritance Tax and Capital Gains Tax will be available for transferring property to the next generation. Introduction With more development potential for land and buildings now presenting itself, serious tax planning will be needed and the £10 million limit for Entrepreneurs’ Relief (ER) may be increasingly relevant. The restrictions on ER are fairly onerous with regard to the fact that it doesn’t apply to let ... Continue Reading

Mark McLaughlin CTA (Fellow) ATT TEP highlights potential problems with delivery of returns or payments by post. Introduction The penalty regimes for failure to pay tax (FA 2009 Sch 56) and failure to make returns (FA 2009 Sch 55) can result in significant penalties in some cases. One day can make all the difference, in terms of whether a return is on time, or is late and incurs a penalty. It can sometimes be difficult to establish when HMRC has received a payment or return, and there ... Continue Reading

Leave Me in (Inner) Peace! If only HM Revenue & Customs were not stopping taxpayers from finding themselves - or at least their tax returns, muses Mark McLaughlin of TaxationWeb... When questioned by a colleague last week, I was happy to point out that I wasn't one of the 1,548 individuals who filed their tax returns with HMRC on Christmas Day. In fact, I dutifully filed my 2011-12 tax return online a couple of days later. On 3 January 2013, I received a reminder from HMRC to file ... Continue Reading

The UK has improved its position as a potential base for the holding company of a multinational group, writes Sarah Brock of Ward Williams. A Competitive Edge A few years ago it was common for UK-based groups to hold their overseas subsidiaries through a holding company located in a territory (for example the Netherlands) which operated a participation exemption for foreign dividends and capital gains whilst also having a good network of double tax treaties that reduced or eliminated ... Continue Reading