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The National Audit Office (NAO) has published the findings of its investigation into five 'large tax disputes'.  The report is broadly supportive of HM Revenue & Customs (HMRC) in relation to the 'deals' although it did express reservations about some issues of conduct and found 'significant errors' in following procedures. In terms of the quantum of settlements - whose precise details have not been revealed in the report or elsewhere so as to protect taxpayer confidentiality ... Continue Reading

HM Revenue & Customs has now been instructed to examine the tax affairs of the more than 2,000 individuals whom the government has recently 'discovered' to be receiving their 'pay' without the normal payroll taxes having been applied. It seems the government has no shame: apparently having previously requested that HMRC approve an unknown number of these deals (such as would appear to be the case in respect of the former Chief Executive of the Student Loans Company) it has now demanded ... Continue Reading

The number of cases taken to tax tribunal has risen by 20% in the last year and the backlog of cases has soared. Ian Hyde, partner at Pinsent Masons, thinks he knows why. Freedom of Information Ian explained that a "Freedom of Information Request" made to HM Revenue & Customs (HMRC) has revealed that the number of tribunal cases heard in 2011 rose to 11,000, up 20% from the 9,000 heard in the previous year. The backlog of cases waiting to be heard has also increased to ... Continue Reading

Mark McLaughlin explains the importance of taking and keeping notes of meetings in HMRC enquiries. Introduction An important aspect of HM Revenue and Customs (HMRC) enquiries into tax returns that is sometimes underestimated is meetings between taxpayers (and their agents) and HMRC officers, and the notes taken at those meetings. The taxpayer’s responses to the HMRC officer’s questions often set the course and tone for the whole enquiry. Traditionally, the HMRC officer ... Continue Reading

Peter Arrowsmith, FCA, with a summary of recent NIC developments, and a reminder about the benefits of paying HMRC using the Faster Payments system. Tax/NIC Alignment The consultation on aligning ‘the operation of’ tax and National Insurance contributions scheduled for April and then delayed until May has now been deferred until the autumn. Some commentators are proclaiming the death of the plan at this stage. That may yet be so, but we are looking at a difficult task here ... Continue Reading

Those who believe that they have something to disclose in relation to HM Revenue & Customs' "e-Markets Disclosure Facility", have until 14 June to notify HMRC. They then have a further 3 months until 14 September to make a return and pay any additional tax and penalties that are due. Further information can be found at e-marketplaces campaign and TaxationWeb's Guide to HMRC's Crackdown on eBay Trading Continue Reading

HM Revenue & Customs has opened its consultation on the General Anti-Abuse Rule proposed by Graham Aaronson, QC. The consultation period is set to last until 14 September 2012. Points of interest in relation to HMRC's proposals: It will be for HMRC to prove that the GAAR applies HMRC will have to show that there are "tax arrangements", and Those "tax arrangements" are "abusive" The civil standard of proof will apply The GAAR ... Continue Reading

Disincorporation Relief - Let it Be! Mark McLaughlin tries to hide his disappointment regarding the government's consultation on helping companies disincorporate. I have just had an initial look at the HM Treasury consultation document on disincorporation relief, which was published on 7 June 2012 ('disincorporation' is the broad term given to the process of a business changing its legal form from a limited company to self-employed). At first, I thought it rather strange that the ... Continue Reading

PCG’s Simon McVicker warns the Government to tread carefully with its new proposals on the taxation of controlling persons. Introduction On 23rd May HMRC published a consultation which has the potential to dramatically affect the way companies and public sector bodies engage senior level freelancers, contractors and interim staff. Entitled ‘The Taxation of Controlling Persons’, the consultation is essentially a proposal by the Government to force all those who are deemed ... Continue Reading

Mark Speed of Ward Williams Accountants has useful planning tips for people wanting to defer and possibly to reduce their tax bill. Introduction From 6 April 2013 the Additional Rate of Income Tax will fall from 50% to 45% (42.5% to 37.5% for dividend income).  It will therefore be advantageous for higher earners to delay the receipt of income until after this date, effectively saving 5% on any income successfully deferred. The additional rates apply to income in excess of £150,000.  ... Continue Reading