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Second list of deliberate tax defaulters publishedMay 15, 2013
HMRC have published its second list of deliberate tax defaulters. The list includes 15 individuals, businesses and companies and includes the amounts of tax on which penalties are due and the amount of penalties charged. A deliberate defaulter is a person who incurs a relevant penalty for one of
 
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Fraudulent emails from 'HMRC'May 15, 2013
Taxpayers are reminded that the problem of fraudulent emails continues. The emails are part of a 'phishing' exercise that use bogus e-mails and websites to trick taxpayers into supplying confidential or personal information. These emails aren’t genuine HMRC messages and should be disregarded. The
 
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Renewing tax credit claimsMay 15, 2013
Families and individuals that receive tax credits should ensure that they renew their tax credit claims by 31 July 2013. Claimants who do not renew on time may have their payments stopped. Claims should be renewed by completing the renewals pack that is being sent by HMRC. Claimants need to notify
 
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Tribunal - VAT default surchargeMay 8, 2013
A taxpayer appealed against default surcharges levied by HMRC. A default surcharge is a penalty levied on businesses that submit late VAT returns or late payments. VAT registered businesses are required by law to submit their return and make sure that payment of the VAT due has cleared to HMRC’s
 
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PAYE Employer Annual ReturnMay 8, 2013
Employers are reminded that the filing deadline for submitting the 2012-13 PAYE Annual Return is 19 May 2013. The Return including a P14 for each individual employee and a P35 summarising the entire workforce must be filed. The vast majority of employers are required to file annual and in year forms
 
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Real Time Information updateMay 8, 2013
How are you coping with the new online filing of payroll information? The introduction of the new system where HMRC collect real time information (RTI) for PAYE has begun. The changes take effect from an employers first payday on or after 6 April 2013 unless a later starting date has been agreed.
 
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Isle of Man disclosure opportunityMay 1, 2013
The Isle of Man Disclosure Facility runs from 6 April 2013 to 30 September 2016. The disclosure facility provides an opportunity for taxpayers with assets or investments in the Isle of Man (such as undisclosed bank accounts) to come forward and settle all outstanding tax liabilities. The Isle of
 
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Finance Bill 2013 progressMay 1, 2013
The Finance Bill 2013 was presented to Parliament on 25 March 2013. The Bill contains the legislation for many of the tax measures that have been announced by the Government. The majority of the measures in this year’s Bill were announced at Budget 2012. The Public Bill Committee is expected to
 
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Employer P11D, P11D(b) and P9D deadlineMay 1, 2013
Employers are reminded that the deadline for submitting the 2012/13 forms P11D, P11D(b) and P9D is fast approaching. The filing date for all the forms is 6 July 2013. Late submissions can result in penalties being issued by HMRC. Employers making online submissions will need to correct any problems
 
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PAYE Employer Annual ReturnApril 24, 2013
Employers are reminded that the filing deadline for submitting the 2012-13 PAYE Annual Return is 19 May 2013. The Return, including a P14 for each individual employee and a P35 summarising the entire workforce, must be filed. The vast majority of employers are required to file annual and in year
 
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Tribunal - Imprecise instructions from HMRCApril 24, 2013
An interesting case that considered whether a taxpayer had a reasonable excuse for the late payment of tax centred on HMRC’s lack of clarity. The taxpayer was issued with a penalty for late payment of tax for the 2008-9 tax year. The taxpayer had been made redundant during 2008-9 and his employer
 
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Late filing of Self Assessment tax returnsApril 24, 2013
Taxpayers who have not yet filed their Self Assessment returns online face a daily penalty of £10 up to a maximum of £900, i.e. for three months from 1 May 2013. If the return still remains outstanding further higher penalties will be charged from six months and twelve months late. These penalties
 
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Reduced charges for calling HMRCApril 17, 2013
HMRC recently announced plans to move away from 0845 numbers to 03 numbers. 03 numbers are non-geographic but are usually charged at the same rates as 01 and 02 numbers and are free with some telephone packages. HMRC expect that all premium lines will be switched to 03 numbers by the end of the
 
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Review of ESC A19April 17, 2013
There is an Extra Statutory Concession (ESC) that deals with situations where HMRC have failed or delayed to use information provided by the taxpayer such as details of a change in income or details of a new or additional job. In certain circumstances HMRC can agree not to collect outstanding Income
 
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National Insurance: £2,000 employment allowanceApril 10, 2013
The Government is to introduce an allowance of £2,000 per year for all businesses and charities to be offset against their employer Class 1 secondary NICs’ bill from April 2014. The allowance will be claimed as part of the normal payroll process through RTI. The Government is expected to consult
 
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Crown Dependencies disclosure opportunitiesApril 10, 2013
Three new disclosure facilities have been launched which will allow taxpayers with assets in the Isle of Man, Jersey or Guernsey to come forward and settle any outstanding tax liabilities. The disclosure facilities provide a framework similar to the LDF - Liechtenstein Disclosure Facility. The new
 
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Film tax relief fraud uncoveredApril 3, 2013
A criminal gang have been jailed for a total of over 22 years in the first prosecution for film tax relief fraud. Film tax relief can increase the amount of expenditure that is allowable as a deduction for tax purposes or, if a company makes a loss, can be surrendered for a payable tax credit. In
 
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Managing Serious Defaulters (MSD)April 3, 2013
HMRC have launched a new programme entitled Managing Serious Defaulters (MSD) which seeks to closely monitor the tax affairs of individuals and businesses who have deliberately evaded tax for up to five years. The MSD replaces and expands the Managing Deliberate Defaulters (MDD) scheme which was
 
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General Anti-Abuse Rule (GAAR)March 25, 2013
The General Anti-Avoidance Rule (GAAR) is to be introduced to the UK tax system and will be applied to abusive arrangements entered into on or after Royal Assent to Finance Bill 2013. The GAAR is intended to create a situation where any attempt at reducing tax payments using artificial and abusive
 
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SDLT - Disadvantaged Areas ReliefMarch 25, 2013
HMRC have recently confirmed that the Disadvantaged Areas Relief (DAR) is to be abolished for Stamp Duty Land Tax (SDLT) transactions with an effective date on or after 6 April 2013. The DAR extended the zero rate of SDLT to residential property in designated disadvantaged areas from £125,000 to
 
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Paper Self Assessment returnsMarch 25, 2013
The 2012-13 tax return deadline for taxpayers who continue to submit paper Self Assessment returns is 31 October 2013. Late submission of a Self Assessment return will become immediately liable to a £100 late filing penalty. The penalty will apply even if there is no liability or if any tax due is
 
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RTI slowdown for small businessesMarch 21, 2013
The introduction of the new system where HMRC collect Real Time Information (RTI) for PAYE, represents a fundamental change in the way employers interact with HMRC. The new system involves employers sending HMRC information about tax and other deductions each time a payment is made as part of the
 
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HMRC targets second home ownersMarch 21, 2013
HRMC have announced that second home owners are to be the latest group to be targeted for tax evasion. A new campaign known as the Property Sales Campaign has been launched. The campaign is aimed at those selling homes in the UK or abroad where Capital Gains Tax should have been paid on any profits
 
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VAT liability of coconut milkMarch 21, 2013
A recent First-tier Tribunal case considered the VAT status of coconut water. In July 2011, the taxpayer in this case received a ruling from HMRC confirming that coconut water was zero-rated for VAT. However, HMRC reconsidered this ruling and in December 2011 wrote to the taxpayer withdrawing the
 
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Budget Summary 2013March 20, 2013
Caught between a rock and a hard place, George Osborne pleaded his case for continued austerity in his fourth Budget whilst maintaining the UK economy was on track to recovery. Overall his budget was fiscally neutral – any tax savings to be funded by decreases in public expenditure. There were a
 
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Online tax advice for dentistsMarch 13, 2013
A new online tax guide designed specifically for dentists has been launched by HMRC. The guide was published following a HMRC campaign that targeted non-compliant dentists and doctors and has been developed to ensure that dentists are properly aware of their responsibilities. The module includes
 
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Two jailed for gift aid fraudMarch 13, 2013
Two Ghanian nationals who worked as financial advisers have been found guilty of two counts of conspiracy to cheat the Public Revenue. The fraudsters who tried to claim almost £145,000 in a gift aid scam have been jailed for two years. The fraudsters used their financial services agency to process
 
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Reimbursing additional household expensesMarch 6, 2013
The amount that employers can reimburse employees for household expenses when working from home is £4 per week or £18 per month. The allowance is designed to cover costs such as gas and electricity. HMRC’s definition states that in order to qualify, one of the following must apply: The
 
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Late filing of Self Assessment tax returnsMarch 6, 2013
HMRC have written to 850,000 taxpayers who have not yet filed their 2011/12 Self Assessment returns to advise them that they are liable to an automatic £100 penalty for late submission of their tax returns. The penalty applies even if no tax was due or the tax due was paid on time. The letter also
 
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Tribunal examines late Self Assessment returnMarch 6, 2013
The First-tier Tribunal recently heard a taxpayer's appeal against the £100 penalty for late submission of a Self Assessment return for the tax year ending 5 April 2010. The Tribunal had to decide whether the taxpayer had a reasonable excuse for late submission of the return. The facts of this case
 
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Advisory fuel rates for company carsFebruary 27, 2013
New advisory fuel rates took effect from 1 March 2013. Fuel rates are reviewed four times a year with changes taking effect on 1 March, 1 June, 1 September and 1 December. Due to the increased review time, HMRC's previous policy whereby the rate could change if fuel prices fluctuated by 5% or more
 
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Isle of Man disclosure opportunityFebruary 27, 2013
A new Memorandum of Understanding between HMRC and the Isle of Man was signed on 19 February 2013. The Memorandum establishes a new disclosure facility which will run from 6 April 2013 to 30 September 2016. The disclosure opportunity will allow investors with accounts in the Isle of Man to come
 
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List published of deliberate tax defaultersFebruary 27, 2013
HMRC have published for the first time a list of deliberate tax defaulters. The list includes nine individuals, businesses and companies and lists the amounts on which penalties are due and the amount of penalties charged. A deliberate defaulter is a person who incurs a relevant penalty for one of
 
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HMRC launches new taskforcesFebruary 20, 2013
New specialist taskforces have recently been launched by HMRC to target the following sectors: Fraudulent use of the Self Assessment system in London and the South East. Tax evasion in Northern Ireland. The jewellery trade in the Midlands. Fast food outlets in East Anglia. The launch of the
 
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Tax phishing emailsFebruary 20, 2013
Last year almost 80,000 fraudulent emails were reportedly sent to taxpayers as if from HMRC. The emails typically informed the recipient that they were due a tax rebate and often provided a click-through link to a clone of the HMRC website. Recipients may be asked to provide their credit card
 
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Tribunal - VAT definition of a dwellingFebruary 20, 2013
A recent Tribunal case examined a taxpayer's entitlement to refund of VAT in respect of the Do It Yourself ('DIY') Builders scheme. This scheme has been designed to ensure that a homeowner building a home can benefit from the rules which allow the qualifying construction costs of new homes and
 
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Tax fraud electrician sent to jailFebruary 13, 2013
An electrical contractor has been found guilty of tax fraud and jailed for three years following an investigation by HMRC. The contractor who worked for a large number of building companies processed more than 500 false purchase invoices between January 2008 and October 2010 in order to claim VAT
 
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Real Time Information deadlineFebruary 13, 2013
Employers only have a few weeks to update payroll software in order to comply with HMRC's change to the collection of payroll information in real time from 6 April 2013. The Real Time Information (RTI) system requires that employers send HMRC tax and other deductions data each time a payment is
 
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HMRC call waiting times and chargesFebruary 13, 2013
It appears that HMRC are being held to account for their failure to answer phone calls in a timely manner. HMRC’s chief executive and Permanent Secretary Lin Homer and Ruth Owen, Director General, Personal Tax, have both appeared before the House of Commons Public Accounts Committee (PAC) to answer
 
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Alternative Dispute Resolution updateFebruary 7, 2013
The Alternative Dispute Resolution (ADR) process uses independent HMRC facilitators to help resolve disputes between HMRC and taxpayers. The use of the ADR aims to find a fair and quick outcome for both parties helping to reduce costs and avoid Tribunal hearings. The ADR facilitators will not have
 
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Self Assessment online filing statisticsFebruary 7, 2013
HMRC have issued a press release detailing the number of online filings made for the 2011/12 Self Assessment returns. The use of the online service continues to grow year on year. This year a total of over 7.93 million online filings were made by the 31 January 2013 deadline. A further 1.68 million
 
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General Anti-Abuse Rule (GAAR)January 30, 2013
In the 2012 Budget, the Chancellor confirmed that the Government was considering the introduction of a General Anti-Avoidance Rule (GAAR) to the UK tax system. Such a rule would block any attempt at reducing tax payments using artificial and abusive tax avoidance arrangements. The GAAR aims to root
 
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Swiss offshore bank accountsJanuary 30, 2013
The UK and Switzerland recently signed a landmark tax agreement that introduces enormous changes to the taxation of offshore bank accounts in Switzerland. The changes came into effect on 1 January 2013. Under the agreement, UK taxpayers have two options. The first option is to make a full disclosure
 
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Major changes to state pensions announcedJanuary 30, 2013
The Department for Work and Pensions (DWP) has published a white paper entitled Single tier pensions – a simple foundation for savings. The proposals within this paper will bring about significant changes to the state pension. The introduction of a single tier state pension will see the end of the
 
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The Annual Investment AllowanceJanuary 23, 2013
The Annual Investment Allowance (AIA) was first introduced in 2008. The AIA is designed to give 100% first year tax relief for qualifying expenditure on plant and machinery. It can be claimed by an individual, partnership or company carrying on a trade, profession or vocation, a UK non residential
 
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Tribunal case - MTIC fraudJanuary 23, 2013
Missing Trader Intra-Community (MTIC) fraud focuses on the sales of mobile phones and computer software. MTIC fraud also known as 'carousel fraud' usually involves small high value goods such as computer chips or mobile phones which are imported free of VAT from other EU member states. The goods are
 
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Affluent Unit to expandJanuary 23, 2013
HMRC’s Affluent Unit was set up in October 2011 to examine the tax affairs of individuals whose wealth exceeds £2.5 million and have an annual income of £150,000 or more. By the end of December 2012 the Affluent Unit had recovered an extra £75 million in tax and now has plans to raise £586 million
 
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Tribunal examines careless inaccuracy penaltyJanuary 16, 2013
The First-tier Tribunal recently published their full findings into a taxpayer's appeal against a penalty imposed by HMRC for a careless inaccuracy relating to his 2009-10 Self Assessment tax return. The taxpayer did not dispute that his tax returns contained errors but appealed HMRC’s decision to
 
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Late VAT returnsJanuary 16, 2013
It was recently announced that businesses submitting late VAT returns will face additional scrutiny if their VAT returns remain outstanding after 28 February 2013. According to HMRC’s figures, more than 600,000 are required to file their VAT returns each month and most do so on time. However, HMRC
 
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Class 2 National Insurance ContributionsJanuary 16, 2013
Class 2 National Insurance Contributions (NICs) are paid by all self-employed taxpayers unless they qualify for the small earnings exemption or other exemptions which remove the necessity to pay NICs. Class 2 NICs are payable at a flat weekly rate. Since April 2011, payments for Class 2 NICs
 
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Direct sellers - disclosure opportunityJanuary 9, 2013
The latest HMRC campaign to be launched is the Direct Selling Campaign and targets taxpayers who should to be paying tax on income they earn from buying and selling goods away from a retail shop, often in the customers' own homes or door to door. This includes agents, consultants, representatives
 
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Self Assessment deadlineJanuary 9, 2013
Taxpayers are reminded that the deadline for submitting 2011/12 Self Assessment tax returns online is 31 January 2013. Taxpayers should also be aware that payment of any tax due should also be made by this date. This includes both the payment of any balance of Self Assessment liability for the
 
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Tribunal case - National Insurance ContributionsJanuary 9, 2013
Class 2 National Insurance Contributions (NICs) are paid by all self-employed taxpayers unless they qualify for the small earnings or other exemptions. Class 2 NICs are payable at a flat weekly rate and count towards payments such as the basic state pension, the employment and support allowance,
 
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Statutory residence testJanuary 2, 2013
In June 2011 the Government published a consultation document regarding its plans for a Statutory Residence Test (SRT). The consultation proposed a framework for the SRT and sought views from interested parties with a view to replacing the existing day-counting methodology which does not properly
 
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Artificial loss relief - tax avoidance scheme closed downJanuary 2, 2013
The Government has announced that legislation is to be introduced, effective from 21 December 2012, to target a tax avoidance scheme. The scheme seeks to exploit the rules in relation to a property business by generating artificial loss relief for use by companies to reduce their Corporation Tax
 
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UK - US FATCA tax agreementJanuary 2, 2013
The UK Government have been working together with the United States to combat tax evasion, specifically in relation to the US ‘FATCA’ legislation. The FATCA (the Foreign Account Tax Compliant Act) legislation seeks to combat tax evasion by requiring that US taxpayers with specified foreign financial
 
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Tax Credits renewalsDecember 19, 2012
The Child Tax Credit was designed to help lower income families with children. As a rough guide claimants with only one child may not receive Child Tax Credit if their income is more than approximately £26,000 and those with two children if their income is more than approximately £32,200. Child
 
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Budget 2013December 19, 2012
The Chancellor has announced that the 2013 Budget will be held on Wednesday, 20 March 2013. The Budget will be George Osborne’s fourth and will take place on the final Wednesday before Parliament's Easter break. Details of all the Budget announcements will be made on a special Budget 2013 section
 
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Charities online serviceDecember 19, 2012
From April 2013 HMRC are launching a new service called Charities Online. This change was first announced by the Chancellor as part of the 2011 Budget. The new online system will replace the current R68(i) Gift Aid and tax repayments claims form. According to HMRC, the new system will provide a way
 
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Tribunal – late submission of P35December 12, 2012
The First-Tier Tribunal recently heard a taxpayers appeal against penalties for the late submission of a P35 for the tax year ended 5 April 2010. The P35 should have been filed by 19 May 2010 but was ultimately filed on 7 June 2011. The taxpayers’ business ceased to trade on 30 September 2009.
 
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Draft Finance Bill 2013 publishedDecember 12, 2012
The Government published the Finance Bill 2013 draft clauses, explanatory notes and draft secondary legislation on 11 December 2012. The draft legislation is open for consultation until 6 February 2013 and the draft Finance Bill is due to be published after the 2013 Budget. The Bill and explanatory
 
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Government to waive VAT on X-Factor charity singleDecember 12, 2012
The Government have announced that they are to waive the VAT equivalent on the sales of this year’s X-Factor Christmas Charity single. All proceeds from the sale of the single are going to Together for Short Lives, a charity that provides support for children with life-limiting illnesses and their
 
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Duty free limits for travellersDecember 5, 2012
Here is a reminder for travellers of their duty and tax free allowances whilst travelling abroad. Travelling to an EU country Where tobacco or alcohol is brought in from another EU country no duties or tax will be payable as long as you can demonstrate that the goods are for your own use and
 
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Self Assessment deadlinesDecember 5, 2012
Taxpayers are reminded that the deadline for submitting 2011/12 Self Assessment tax returns online is 31 January 2013. Taxpayers should also be aware that payment of any tax due should also be made by this date. This includes both the payment of any balance of Self Assessment liability for the
 
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Builder jailed for tax fraudDecember 5, 2012
A self employed builder has been jailed for fourteen months after he pleaded guilty to tax fraud. HMRC investigators discovered that the builder had evaded Income Tax and National Insurance Contributions of approximately £65,000 after setting up a general building and gas fitting business in 1983
 
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Autumn StatementDecember 5, 2012
Confirming what we all knew to be the case, George Osborne advised in his Autumn Statement that the UK economy is forecast to shrink in 2012. The actual percentage rate is small, just 0.1%. In the subsequent 5 years to 2016-17 we are advised that the UK should achieve modest growth as the present
 
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New Bank of England Governor appointedNovember 28, 2012
In a surprise move, the Government have announced the appointment of Mark Carney as the new Governor of the Bank of England. Mr Carney who currently holds the position as the Governor of the Canadian central bank, will serve for five years from 1 July 2013 succeeding Sir Mervyn King to the post.
 
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Swiss bank account deadline loomsNovember 28, 2012
The UK and Switzerland signed a landmark tax agreement in October 2011 that introduces enormous changes to the taxation of offshore bank accounts in Switzerland. The changes are due to come into force from 1 January 2013. Under the agreement, UK taxpayers have two options. The first option is to
 
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Tribunal confirms tax avoidanceNovember 28, 2012
The First-tier Tribunal recently examined a complex set of transactions which were carried out between 2003 and 2005. The transactions involved unregistered trademarks (in the form of newspaper mastheads) being assigned from four separate subsidiaries to their parent company. The various
 
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Reduced rate Inheritance TaxNovember 21, 2012
Inheritance Tax is levied on a person's estate when they die and can also be payable during a person’s lifetime on certain trusts and gifts. The rate of Inheritance Tax payable is 40% on death and 20% on lifetime gifts. There is a nil rate band, currently £325,000, below which no Inheritance Tax is
 
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National Insurance numbersNovember 21, 2012
HMRC announced some time ago that they have stopped sending plastic National Insurance number cards. The cards have been replaced by a letter stating an individual's National Insurance number. It is important that individuals keep a record of their National Insurance number on file. Individuals who
 
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VAT registration for non-UK businessesNovember 21, 2012
Overseas businesses that sell goods or services in the UK need to be aware of the new VAT registration rules that took effect from 1 December 2012. The new rules remove the VAT registration limit (currently £77,000) from businesses which are defined as 'non-established taxable persons'. This means
 
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Tribunal case - VAT flat rate schemeNovember 14, 2012
The purpose of the VAT Flat Rate scheme (FRS) is to simplify the way a business accounts for VAT and in so doing reduce the administration costs of complying with the VAT legislation. However, businesses most often make decisions based on cold hard cash and most businesses that sign up for the Flat
 
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Submitting an annual return to Companies HouseNovember 14, 2012
Companies House have published a new version of the guidance governing the filing of annual returns and accounts of UK registered companies entitled Life of a Company - Part 1 Annual Requirements - GP2. The guidance is relevant to companies whose annual return has a made up date on or after 1
 
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Tribunal case - MTIC fraudNovember 7, 2012
Missing Trader Intra-Community (MTIC) fraud focuses on the sales of mobile phones and computer software. MTIC fraud also known as 'carousel fraud' usually involves the small high value goods such as computer chips or mobile phones which are imported free of VAT from other EU member states. The goods
 
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Business Record Checks updateNovember 7, 2012
The Business Record Checks (BRC) programme imposes penalties for significant record-keeping failures relating to Income Tax, Corporation Tax and VAT and applies to the self-employed, sole traders and businesses with a turnover of less than €50m and with less than 250 employees. HMRC had been
 
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UK / Switzerland tax agreementNovember 7, 2012
The UK and Switzerland recently signed a landmark tax agreement that will introduce enormous changes to the taxation of offshore bank accounts in Switzerland. The changes are expected to come into effect from 1 January 2013. Under the agreement, UK taxpayers have two options. The first option is to
 
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Tribunal - VAT partial exemption special methodOctober 31, 2012
A business that incurs expenditure on taxable and exempt business activities is partially exempt for VAT purposes. In essence the business has to make an apportionment between the activities using a 'partial exemption method' in order to calculate how much input tax is recoverable. There are a
 
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Gender neutrality on insurance productsOctober 31, 2012
From 21 December 2012 women pensioners could see a significant increase in their pension income following a recent ECJ ruling which changed the rules on gender neutrality. This follows a case taken by the Belgian consumer group Test Achats. The ruling means that insurers can no longer use gender to
 
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Child Benefit changesOctober 31, 2012
Approximately one million families will be receiving letters from HMRC during the next few weeks. They are expected to be affected by the Government's plans to recover the Child Benefit from many couples by taxing the highest income earner. See below for details of families that will be affected.
 
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Tribunal - residency issues Spain / UKOctober 24, 2012
A recent Tribunal case examined the issue of whether a taxpayer remained resident in the UK despite having moved to Spain. This case had a long history stemming from a rental and subsequent purchase of a home in Spain by the taxpayer. The Tribunal case specifically concerned an appeal against
 
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Gov.uk website launchedOctober 24, 2012
The Cabinet Office have released a new website called GOV.UK. The website which replaces both the BusinessLink and Directgov websites is a first step in making all the Government’s websites available in one place. The site which has been open on a trial basis since February has now gone live and
 
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Tribunal - Late filing of paper Self Assessment returnOctober 17, 2012
The First-tier Tribunal recently heard a taxpayer's appeal against a £100 penalty for late submission of his 2010/11 tax return. The taxpayer's 2010/11 paper return was filed on 13 December 2011. The due date for the 2010/11 paper return was 31 October 2011 and as the return was late, HMRC issued
 
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Fraudulent emails from 'HMRC'October 17, 2012
Taxpayers are reminded that the problem of fraudulent emails continues. The emails are part of a 'phishing' exercise that uses bogus e-mails and websites to trick taxpayers into supplying confidential or personal information. These emails aren’t genuine HMRC messages and should be disregarded. The
 
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More information on PAYE - Real Time InformationOctober 17, 2012
The introduction of major changes to the way PAYE information has begun with the introduction of a new system where HMRC collect Real Time Information (RTI) for PAYE. The system involves employers sending HMRC information about tax and other deductions from employees' pay when the employee is paid,
 
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Door to door sellers targeted in latest amnestyOctober 10, 2012
The latest HMRC campaign to be launched, referred to as the Direct Selling Campaign, targets taxpayers who should be paying tax on income they earn from buying and selling goods away from a retail shop, often in the customers' own homes or door to door. This includes agents, consultants,
 
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Pension changes begin to take effectOctober 10, 2012
Major changes to the way pension schemes operate began on 1 October 2012. The change known as ‘automatic enrolment’ is designed to ensure that employers provide a workplace pension for staff and to encourage employees to contribute to pension schemes. The changes will apply to all employees that do
 
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Online beer tax petitionOctober 3, 2012
An online e-petition to stop the beer duty escalator has now received over 100,000 signatures, the threshold needed to seek a Parliamentary debate on the matter. This is only the 12th e-petition out of 16,000 online e-petitions to exceed the 100,000 mark. The beer duty escalator was introduced by
 
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Couple jailed for tax credit and benefit fraudOctober 3, 2012
A Nigerian national and illegal immigrant to the UK has been found guilty of attempting to claim £3.8 million in a tax credits and benefits scam and has been sentenced to seven years in prison. The Judge also indicated that the man should be deported after he has served his sentence. The man’s
 
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Changes to HMRC mail handlingOctober 3, 2012
If you are posting correspondence or returning forms to HMRC please note that from this month new PO address boxes apply to certain districts. The introduction of the new PO Box addresses extends the successful pilot exercise which was launched last year for Self Assessment and Pay as you Earn
 
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HMRC's Affluence Unit to expandOctober 3, 2012
An Affluence Unit was set up in October 2011 to examine the tax affairs of taxpayers who had wealth of at least £2.5 million and/or paid Income Tax at the 50% rate. Danny Alexander, Chief Secretary to the Treasury recently announced that the remit of the unit is to be extended to target those with
 
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HMRC launches five new taskforcesSeptember 26, 2012
HMRC taskforces are comprised of multiple teams from across HMRC including special investigations, local compliance and criminal investigation units for targeting specific sectors and locations where there is a high risk of tax evasion. The taskforces use local knowledge and risk profiling to help
 
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SDLT tax avoidance schemesSeptember 26, 2012
SDLT is a tax that is usually payable on the purchase or transfer of land and property in the UK. It is also payable in respect of certain lease premiums. SDLT is chargeable by reference to the cash value of the transaction. However the definition of 'consideration' is very wide and is intended to
 
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Marginal rate of Income TaxSeptember 26, 2012
The basic personal allowance for the current tax year (2012-13) is £8,105 an increase of £630 over the previous year and will rise by a further £1,100 to £9,205 in April 2013. These increases are part of the Government’s commitment to increase the personal tax allowance to £10,000 by the end of the
 
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PAYE - Real time informationSeptember 19, 2012
Major changes to the way PAYE information is collected by HMRC has begun. The system involves employers sending HMRC information about tax and other deductions from employees' pay when the employee is paid, rather than at the end of the tax year as at present. The Real Time Information (RTI)
 
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UK signs FATCA tax agreement with USSeptember 19, 2012
The UK Government have been working with the United States to combat tax evasion specifically in relation to the US ‘FATCA’ legislation. The FATCA (the Foreign Account Tax Compliant Act) legislation seeks to combat tax evasion by requiring that US taxpayers with specified foreign financial assets
 
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HMRC High Net Worth Unit exceeds targetsSeptember 19, 2012
HMRC's High Net Worth Unit (HNWU) was established in 2009 to deal with taxpayers who have wealth in excess of £20 million. HMRC used details from tax returns and other public information databases to identify about 5,000 of the countries highest taxpayers who are handled by the HNWU. In certain
 
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Tribunal – VAT default surcharge penaltySeptember 19, 2012
The First-Tier Tribunal recently heard an appeal against a VAT default surcharge. A default surcharge is a penalty levied on businesses that submit late VAT returns or late payments. VAT registered businesses are required by law to submit their return and make sure that payment of the VAT due has
 
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Direct sellers offered new disclosure opportunitySeptember 12, 2012
Campaigns against tax avoidance have revolved around offering specific targeted groups rather than general tax amnesties. The latest HMRC campaign to be launched known as the Direct Selling Campaign will target taxpayers who should be paying tax on income they earn from buying and selling goods away
 
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VAT changes from 1 October 2012September 12, 2012
A number of measures were announced as part of the Budget to correct what the Government saw as anomalies with the VAT legislation. HMRC have recently published seven information sheets which provide further specifics on the VAT changes to the treatment of certain zero-rated and exempt supplies. All
 
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