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HM Revenue & Customs has not changed its position in relation to the charging of VAT by golf clubs, to non-members, on green fees. In Revenue & Customs Brief 25/12, HMRC has confirmed that it stands by the current guidance in Notice 701/45 Sport which is that VAT should be charged. HMRC's argument is that not to do so would allow golf clubs to undercut other commercial enterprises, which do have to charge VAT in similar circumstances. The test case of The Bridport and West Dorset Golf ... Continue Reading

HMRC's conduct in relation to the concession which allows them to give up tax when they have taken too long to raise assessments (ESC A19) has long been roundly criticised amongst the tax profession. A lack of consistency and a failure to follow their own guidance properly is well known - how often, for instance, is ESC A19 considered automatically - before being requested by the taxpayer?* HMRC recently issued a consultation Extra-Statutory Concession A19 Review which attempts to re-define ... Continue Reading

The Chartered Institute of Taxation points out that the normal route for most new businesses buying a standard company "off the shelf" risks immediate disqualification from the new Seed Enterprise Investment Scheme. (SEIS) The SEIS has a lot to offer - such as up to 50%  Income Tax relief and potentially a complete exemption for Capital Gains Tax for other 2012/13 gains re-invested in a qualifying subscription. The only problem is that most brand new companies may not qualify, as the ... Continue Reading

It may be possible to utilise low-value milk quota to shelter other capital gains, suggests Julie Butler. Introduction It may be considered that the value of milk quota is currently ‘negligible’.  This can result in a very effective Capital Gains Tax (CGT) planning tool for the farming community. It is certain that many farms will make a number of capital disposals which create a capital gain for which Entrepreneurs’ Relief does not apply. Examples of potential ... Continue Reading

Planning for business succession is important but the wrong policy can be very expensive, warns Tony Granger for Tax Insider. Introduction The importance of having proper succession planning and commercial agreements in place for partners, LLP members or shareholders cannot be over-emphasised. If anything happens to you, such as death or incapacity, what are your plans for the business? If misfortune befalls other shareholders or partners, what would you like to happen? shares ... Continue Reading

HMRC: Open and Honest? Take our Poll TaxationWeb's Mark McLaughlin thinks HMRC will irreparably damage its reputation if it has in fact forbidden its staff to waive tax when they make a mistake. (ESC A19) Poll: Has HMRC Crossed the Line with ESC A19? There is an excellent article in 'Taxation' magazine this week ('Jumping the Gun'), about HM Revenue & Customs' (HMRC) Extra Statutory Concession A19 (ESC A19). The article was written by a good friend of mine, Paul McKay, who is Corporate ... Continue Reading

HM Revenue & Customs' Alternative Dispute Resolution Service for SMEs and Individuals deals with some very modest amounts, notes TaxationWeb. Firstly, a big "Thank You" to Don Draper for last week's Guest Editorial and for his accompanying article which highlighted the frankly appalling effective marginal rates of tax that some (roughly 2 million) families are facing - and which will worsen next year when Universal Credit is introduced. To quote from the article Income Tax Needs to take ... Continue Reading

LITRG is supporting the proposal that HMRC should have a statutory power to withdraw a notice to file a self-assessment return. Background Normally, if you are sent a tax return, you have to fill it in, even if HMRC agree that you should not be in self-assessment and agree to take you out of the system for future years. But early in 2012, HMRC announced that if an individual could demonstrate that the return they had been sent was unnecessary, they would permit them not to file ... Continue Reading

The tax credits renewals deadline has now passed. But all is not lost if you missed the 31 July deadline, provided you take action quickly. LITRG explains what to do. Background The renewals process acts as a new claim for 2012/13 and also finalises your tax credit award for the last tax year (to 5 April 2012). Not everyone is required to take action, but claimants who received an annual review form and declaration form were required to give HMRC their 2011/12 income figures (actual ... Continue Reading

Don Draper considers how the UK tax regime can unfairly penalise families, with effective tax rates approaching 80%. Introduction The time has come to look again at the way we tax families. Independent taxation was a necessary reform. Working wives had their own tax allowances, but until 1990 a married woman’s income was treated as that of her husband. This relic of the Victorian age  had to go. But the way this was done has resulted in some families bearing a disproportionate ... Continue Reading