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In the current economic climate, offering a tax efficient option may make the difference between securing a potential investment and not. Sarah Brock, Corporation Tax Manager at Ward Williams, considers some of the opportunities available to encourage investment. Business Structure Before considering the potential tax incentives available to investors, it is worth taking the time to consider the structure of the business. The main tax incentives available to investors are available only ... Continue Reading

The ongoing consultation on the General Anti-Abuse Rule should not be overlooked by the profession, warns C3Tax. Introduction Amongst the recent lurid headlines and welter of publicity concerning the morality or otherwise of tax avoidance (or sensible financial planning, depending on your point of view), it has almost escaped attention that we are currently in the midst of a consultation period during which HM Revenue & Customs (HMRC) are inviting comments and questions concerning the ... Continue Reading

Patrick Stevens, president of the Chartered Institute of Taxation, considers the ramifications for the tax profession at large in light of recent high-profile tax avoidance cases. Introduction Over the course of my career as a tax adviser, I’ve worked for firms of all sizes - small, medium and large. Throughout, I have been proud of what I do. I am sure most other tax professionals are of a similar mind. It seems to me that our job relies on the tax system working reasonably ... Continue Reading

Mark McLaughlin looks at whether a recent tax case has introduced one or more additional 'badges of trade' when determining whether an activity constitutes a trade. Introduction - The Badges of Trade It will generally be clear whether a person is carrying on a trade, although there will always be grey areas of uncertainty. There is little help to be found in the tax legislation, which merely defines ‘trade’ as ‘any venture in the nature of trade’ (ITA 2007 s 989; ... Continue Reading

TaxationWeb wants to know if ordinary HM Revenue & Customs employees feel that the  Pacesetter Strategy is working. I was interested to read HMRC's 'Continuous Improvement Strategy' this week. What is it exactly? HMRC describes it in the following terms: "The HMRC Continuous Improvement Strategy, known as PaceSetter, sets out how HMRC will create an organisation that is focused on customers, uses proven techniques from across the public and private sectors to strengthen delivery, and ... Continue Reading

HMRC has just announced an online guide for farmers at Starting in Business. The guidance has apparently been drafted with the help of the National Farmers' Union (NFU) and on the whole is a decent and helpful guide aimed at people who are completely new to business and setting up in self-employment - although it's clearly a general guide with a bit of farmer-specific advice bolted on. Note, however, the following: Section 8 Forward Planning - Retirement Although you may have ... Continue Reading

Peter Arrowsmith, FCA, has an update on recent NIC matters, and points out that - for now at least - the "holiday stamp" is still available for some. EC Regulations Amended The EC Regulations 883/2004 and 987/2009 have been amended with effect from 28 June 2012 by EC Regulation 465/2012. The main changes are as follows: the rules for aircrew are amended, along with the application of Council Reg 3922/1991 for social security purposes, with the intention of preventing avoidance, Article ... Continue Reading

Julie Butler looks at the potential tax benefits of introducing a company to a business partnership, for Tax Insider. The "Problem" with Partnerships When there is high profitability in partnerships there are concerns regarding the ”double blow” of Class 4 National Insurance Contributions (NICs) and the 50% rate of Income Tax. The current “fashion” is to use a limited company (“NewCo”) as an integrated part of the commercial enterprise. One distinct ... Continue Reading

TaxationWeb's Mark McLaughlin worries that HMRC's taskforces may be taking an unduly heavy-handed approach to taxpayers, for the wrong reasons. HM Revenue & Customs announced on 5 July 2012: "Over £30m will be recovered from tax dodgers as HM Revenue & Customs (HMRC) launches new taskforces around the country. These "specialist teams" will be targeting Scottish pubs and nightclubs, hair and beauty businesses in Northern Ireland, the motor trade in South Wales, the South West, Yorkshire, ... Continue Reading

Today (6 July) is ostensibly the filing deadline for Forms P11D / P11D(b) and it is well known that there are penalties for failure to file on time.  However, despite the penalty 'clock' starting on 7 July, no penalty will in fact be charged unless the returns are still outstanding beyond 19 July.  As per HMRC's own CWG5 Booklet Class 1A National Insurance Contributions on Benefits in Kind: "The filing deadline for the return is 6 July. If we do not receive the return ... Continue Reading