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Coastal Communities FundJanuary 29, 2015
The Coastal Communities Fund (CCF) was established in 2012 with the aim of encouraging the economic development of UK coastal communities by awarding funding to create sustainable economic growth, new jobs and creating new opportunities in local areas. Since the fund started grants have been awarded
The Liechtenstein Disclosure FacilityJanuary 29, 2015
The Liechtenstein Disclosure Facility (LDF) provides a framework to assist UK taxpayers with investments in Liechtenstein - that have not been taxed - to make a full disclosure to HMRC. The agreement allows penalties on unpaid tax to be capped at 10% of tax evaded over the last ten years. The LDF
Diverted Profits TaxJanuary 29, 2015
As part of the Autumn Statement measures, the Chancellor announced the introduction of a new Diverted Profits Tax (DPT) to counter the use of aggressive tax planning to avoid paying tax in the UK. The DPT has been coined as the 'google tax' but the net is spread much wider than technology companies.
Non-UK domiciled individuals consultationJanuary 29, 2015
A new consultation has been launched jointly by HM Treasury and HMRC. The consultation follows the Government’s announcement during the Autumn Statement on plans to enforce a three-year minimum claim period for the remittance basis charge. Comments were requested by 16 April 2015. The changes seek
EC approval for Rural Fuel Duty reliefJanuary 29, 2015
The European Commission (EC) has approved an extension of the Rural Fuel Duty relief scheme that has cut fuel duty in remote island communities by 5p per litre. The scheme currently applies to the sale of unleaded petrol, diesel, biodiesel, bioblend and bioethanol blend in the Inner and Outer
Wealth unit raises 137mJanuary 29, 2015
HMRC’s Affluent Unit was set up in October 2011 to examine the tax affairs of taxpayers who had wealth of at least 2.5 million and an annual income of 150,000 or more. In 2013, the Affluent Unit doubled in size and grew to look at taxpayers whose wealth was over 1 million. The Affluent Unit is
Research and Development (R&D) tax creditsJanuary 22, 2015
Research and Development (R&D) tax credits were introduced for Small and Medium Sized Enterprises (SMEs) in 2000 and for large companies in 2002. R&D credits are a Corporation Tax relief that were introduced to encourage innovation and enterprise within the UK economy. Small and Medium-sized
Death taxes on ISAsJanuary 22, 2015
One of the more welcome announcements as part of the Autumn Statement in December 2014 was a new measure concerning the inheritance of Individual Savings Accounts (ISA). With effect from 3 December 2014, if an ISA (also known as ‘New ISAs’) saver in a marriage or civil partnership dies, their spouse
New phishing email publishedJanuary 22, 2015
HMRC has warned of a new email phishing scam. Phishing emails are used by fraudsters to access recipients’ valuable personal details, such as usernames and passwords. Whilst these messages may appear to be genuine they are very dangerous and clicking on a link from within the email can result in
Scottish taxation changesJanuary 22, 2015
The Scotland Act 2012 came into law on 1 May 2012 and gives the Scottish Parliament the power to set a Scottish rate of Income Tax which will be administered by HMRC for Scottish taxpayers. The Act also fully devolves the power to raise taxes on land transactions and on waste disposal to landfill to
Claiming a repayment of tax from HMRCJanuary 22, 2015
An updated version of the form P50 entitled 'Claim for repayment of tax when you have stopped working' has been published. The form can be used by individuals to claim back excess tax that has been paid when taxpayers have stopped working. The form can be used in the following circumstances: By
Launch of basic fee-free bank accountsJanuary 15, 2015
The Government has published a list of nine banks that have agreed to offer basic bank accounts. This follows a new agreement that was reached last month between the Government and the banking industry to establish a new basic bank account. These new accounts will help people who do not have a bank
Tribunal examines entitlement to Private Residence ReliefJanuary 15, 2015
In general there is no CGT on a property which has been used as the main family residence. An investment property which has never been used will not qualify. This relief from CGT is commonly known as Private Residence Relief. In general, taxpayers are entitled to full relief from CGT where all the
Shared Parental Pay and LeaveJanuary 15, 2015
Any of our readers or their partners anticipating the arrival of a baby on or after 5 April 2015? New legislation has come into force that allows working parents far greater choice in how they share the care of their child and take time off work during the first year of their child’s life. The rules
Best tax return filing ratesJanuary 15, 2015
HMRC has released an interesting analysis showing that women are more likely than men to send in their tax return on time. The statistics were compiled by analysing the filing of 2012-13 tax returns up to the end of July 2014. The paper return for that year was due to be filed by 31 October 2013 and
New pension service launchedJanuary 15, 2015
A new free and impartial pensions guidance service, Pension Wise, has been launched. The new service is being run jointly by The Citizens Advice Bureau (CAB) and The Pensions Advisory Service (TPAS). The launch of this new service follows the launch of wide-ranging changes for individuals that have
Small businesses affected by VAT rule changeJanuary 15, 2015
The way that VAT is applied on the sale of certain Business to Consumer digital services in the EU changed on 1 January 2015. The place of supply is now determined by the location of the customer who receives the service rather than the location of the supplier. The new rules have been introduced
Finding your National Insurance numberJanuary 8, 2015
HMRC has issued a tweet to remind people how to find a lost National Insurance number. Anyone who has lost or forgotten their National Insurance number should first try and locate the number on paperwork such as their tax return, payslip or P60. If the National Insurance number still cannot be
Class 2 National Insurance ContributionsJanuary 8, 2015
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. Payments for Class 2 NICs become due on 31
Self Assessment deadline approachesJanuary 8, 2015
Taxpayers are reminded that the deadline for submitting 2013/14 Self Assessment tax returns online is 31 January 2015. 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
Money launderers jailedJanuary 8, 2015
The money laundering rules are designed to protect the UK financial system and put in place certain controls to prevent businesses being used for money laundering by criminals and terrorists. Failure to comply with the money laundering regulations could result in a civil financial penalty or
New savings club for children launchedJanuary 8, 2015
The Government has announced it will fund a pilot scheme, to the tune of 150,000, to set up savings clubs in primary schools in a bid to help prevent children racking up debts later on in life. This follows a proposal by the Archbishop of Canterbury’s Task Group on Responsible Credit and Savings to
Rise in online tax returns filed over ChristmasJanuary 2, 2015
Taxpayers are reminded that the deadline for submitting 2013/14 self assessment tax returns online is 31 January 2015. 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
HMRC warns of fraudulent activityJanuary 2, 2015
HMRC has published updated guidance on phishing and bogus emails. The new 11 page PDF document includes examples of emails, letters, text messages, and bogus calls used by scammers and fraudsters to get your personal information. Phishing emails are emails sent by fraudsters who try and trick
SDLT avoidance caseJanuary 2, 2015
The Upper Tribunal (UT) has upheld a ruling against a Stamp Duty Land Tax (SDLT) avoidance scheme that was used by the buyers of Chelsea Barracks in January 2008. The Chelsea Barracks was sold to a company by the name of Project Blue Ltd (PBL) that is now owned by the Qatari government. The site is
HMRC campaigns updateJanuary 2, 2015
HRMC has recently published an update on the amount of tax they have collected since the introduction of the current batch of targeted campaigns against tax avoidance which began with the Offshore Disclosure Facility (ODF) in 2007. The ODF (and subsequent New ODF) targeted taxpayers with unpaid
HMRC website moves to GOV.UKJanuary 2, 2015
The HMRC website has a new homepage. Since 16 December 2014, the main address for HMRC has been redirected to the GOV.UK portal. This move is in line with the Governments digital strategy that will see the transition of all central government websites to GOV.UK. However, not all of the content on
New joint venture to target 20bn in debtsJanuary 2, 2015
For a number of years, HMRC and other Government agencies have been working with private sector organisations to collect debt owed to the Government. Following a review of the debt collection services a new joint venture has been launched with the private sector. A new company, called Integrated
Accelerated Payment Notices updateDecember 18, 2014
The 2014 Finance Act gave HMRC significant new powers to demand upfront payment of disputed tax from taxpayers using avoidance schemes. This is facilitated by the use of an Accelerated Payment Notice (APN) when HMRC have an open appeal or enquiry and either: the taxpayer is using certain
Guidance for small businesses on VAT rule changeDecember 18, 2014
As many of our readers will be aware there are significant changes to the VAT place of supply rules for businesses supplying digital services. The changes come into effect on 1 January 2015. Currently these supplies are taxed in the Member State in which the business is established. However, from
National Insurance Contributions for under 21sDecember 18, 2014
New guidance has been published for employers regarding the abolition of National Insurance Contributions (NICs) for employees between the ages of 16 and 21. The changes will apply from 6 April 2015. From 6 April 2015, employers with employees under 21 years old will no longer have to pay Class 1
HMRC re-launch service to help small businessesDecember 18, 2014
HMRC has re-launched a digital interactive publication known as Supporting Small Business. The publication contains links to new products and services for small businesses. It also explains how HMRC is delivering new and enhanced digital services, delivering better help, support and guidance,
Date announced for Budget 2015December 18, 2014
The Chancellor has announced that the 2015 Budget will be held on Wednesday, 18 March 2015. The announcement was made during an evidence session on the Autumn Statement of the Treasury Committee. HM Treasury also tweeted the news. The Budget will be George Osborne’s sixth and follows on from his
Pensioner bonds to be launched this monthDecember 18, 2014
The Treasury has confirmed the interest rates for the new National Savings and Investments (NS&I) product called pensioner bonds. The new pensioner bonds will offer greater certainty and a better return for pensioners many of whom rely on savings income and have been hit by low interest rates
NISA limits set to increaseDecember 11, 2014
The New ISA (NISA) was announced by the Chancellor as part of the 2014 Budget announcements and came into effect on 1 July 2014. The NISA introduced major changes to the old ISA system by introducing equal limits for cash and stocks and shares. This allows savers the ability to transfer funds from
Goodwill and Entrepreneurs’ ReliefDecember 11, 2014
A new measure was announced as part of the Autumn Statement. Entrepreneurs’ Relief (ER) will no longer be available to reduce Capital Gains Tax (CGT) on disposals of the reputation and customer relationships associated with a business (the ‘goodwill’) to a close company to which the seller is
EU VAT refund schemeDecember 11, 2014
HMRC has recently released an updated version of VAT Notice 723A which provides more details on submitting a claim for a refund of VAT incurred in other EU countries. The notice also explains the procedure for businesses established outside the EU submitting a claim for VAT incurred in the UK. The
UK to repay final debts of First World WarDecember 11, 2014
In an historic announcement, the Chancellor has said that the Treasury will repay all the nation’s First World War debt by redeeming the outstanding 1.9 billion of 3% War Loan on Monday 9 March 2015. The Bond was issued in 1932 by the then Chancellor Neville Chamberlain to refinance debts run up
Reduced charges for calling HMRCDecember 11, 2014
Increasingly, HMRC has been moving 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. All HMRC helplines now have 03 numbers, and the majority of calls are made using those
Solicitors’ tax campaign launchedDecember 11, 2014
A new tax campaign aimed at providing solicitors with an opportunity to regularise their tax affairs has been launched by HMRC. The Solicitors’ Tax Campaign offers a chance for solicitors to disclose undeclared income and bring their tax affairs up to date. As a first step, solicitors who want to
Gambling tax reforms have begunDecember 4, 2014
New changes to the basis of taxation for gambling duties from 'place of supply' to 'place of consumption' came into effect on 1 December 2014. The introduction of a place of consumption tax means that remote gambling operators will be required to pay tax on the gross gambling profits generated from
Help to Buy Schemes updateDecember 4, 2014
The Help to Buy mortgage guarantee scheme was launched on 8 October 2013 and was extended a few months later. The scheme allows qualifying buyers with a deposit of between 5% and 20% to apply for a mortgage on a home (old or new) worth up to 600,000. The scheme is open to first-time buyers as well
Place of supply rules Q&ADecember 4, 2014
Big changes to the VAT place of supply rules for businesses supplying digital services came into effect from 1 January 2015. Currently these supplies are taxed in the Member State in which the business is established. However, the place of supply will be determined by the location of the customer
New reporting proposals to tackle late paymentDecember 4, 2014
The Government has launched a new consultation on proposals that will oblige large and listed companies to publish detailed information about their payment practices and performance. The proposed changes will provide for a new robust reporting regime, making it easier for small businesses to access
Overseas shopping limitsDecember 4, 2014
Here is a useful reminder for travellers of their duty and tax free allowances whilst travelling over the Christmas period. 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
Self Assessment deadlinesDecember 4, 2014
Taxpayers are reminded that the online filing deadline is 31 January 2015. 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 2013/14, plus any payment on account due for the
Autumn Statement - 3 December 2014December 3, 2014
George Osborne has delivered his last Autumn Statement of this Parliament. As expected, he was bullish about the state of the nation’s finances and seems committed to maintaining a steady reduction in borrowing. Nevertheless, the temptation to include a few sweeteners, prior to the 2015 general
Equitable Life Payment Scheme updateNovember 27, 2014
The Equitable Life Payment Scheme (ELPS) was set up by the government following the almost total collapse of the insurer Equitable Life some 15 years ago. The ELPS was launched in October 2010 to make compensatory payments to certain classes of policy holders. The payments were based on 'relative
Holiday pay and overtime caseNovember 27, 2014
A recent decision of the Employment Appeal Tribunal (EAT) in the case of Bear Scotland Limited and others v. David Fulton and others has been widely reported in the press. The case which could have widespread implications found that guaranteed and non-guaranteed overtime should be included in the
Coding out debts deadlineNovember 27, 2014
New legislation recently came into effect that will allow for a significant increase in the coding threshold for taxpayers. From 2015-16, the amount of debt that can be coded out in a year increases from 3,000 to 17,000 based on a graduated scale. The maximum coding out allowance will only apply
Keeping a copy of HMRC guidanceNovember 27, 2014
The Low Income Tax Reform Group (LITRG) was established in 1998 to improve the policy and processes of the tax, tax credits and associated welfare systems for the benefit of those on low incomes. The LITRG have a number of websites that provide guidance for groups such as students and the disabled.
New safeguards for debt recoveryNovember 27, 2014
HMRC has agreed to introduce significant safeguards to its plans for the introduction of Direct Recovery of Debts (DRD) that was announced as part of the Budget measures earlier this year. The new DRD powers will allow HMRC to recover Income Tax debts directly from taxpayer’s bank and building
Let property disclosure campaignNovember 27, 2014
HMRC’s Let Property Campaign targets landlords who have undeclared income from residential property lettings. The campaign offers the opportunity for landlords to come clean about any outstanding liabilities because of misunderstanding the rules or due to deliberate evasion. HMRC has estimated that
Man jailed for failure to spot money launderingNovember 27, 2014
A man who ran a money-exchange shop in the West Midlands has been jailed for 12 months for his failure to comply with the Money Laundering Regulations (MLR). The regulations are designed to put in place certain controls to prevent businesses being used for money laundering by criminals and
Autumn statement 2014November 20, 2014
The Autumn Statement is due to take place on the first Wednesday of next month (3 December 2014). The statement will be used to give an update on the state of the economy and provide an update on the government’s plans for the economy based on the economic and fiscal forecasts published by the
The Social Investment Tax Relief (SITR) schemeNovember 20, 2014
The Social Investment Tax Relief (SITR) scheme is a tax relief scheme to encourage individuals to support social enterprises and to assist social enterprises accessing new sources of finance. The scheme can be used for investments made on or after 6 April 2014. Individuals making an eligible
Aggregates Levy – Northern IrelandNovember 20, 2014
The Aggregates Levy is relevant to quarry operators and other extractors of rock, sand and gravel, including operators of dredgers, importers of aggregate and others who commercially exploit aggregate as well as other businesses involved in the construction industry and users of minerals for
Gambling tax reforms to come into effectNovember 20, 2014
The introduction of changes to the basis of taxation for gambling duties from 'place of supply' to 'place of consumption' will come into effect from the beginning of next month. With a place of consumption tax basis, remote gambling operators will be required to pay tax on the gross gambling profits
Band Aid anniversary single launchedNovember 20, 2014
The Government has announced that they are to waive the VAT on sales of the Band Aid anniversary single that was launched earlier this week. This announcement closely follows that made recently by the Chancellor in relation to waiving the VAT on the sale of the poppies used within the First World
Government seeks to increase Gift Aid donationsNovember 20, 2014
HM Treasury has recently confirmed that the Gift Aid model declaration form is to be improved in order to stop charities losing out on Gift Aid. The National Audit Office (NAO) estimates there are donations of around 2.3 billion where Gift Aid is not used. Whilst not all of these donations will be
Class 3A National Insurance ContributionsNovember 20, 2014
A new class of National Insurance was first announced in the Autumn Statement in December 2013. The new class of voluntary National Insurance Contributions – Class 3A is aimed at existing pensioners and those workers reaching the state pension age before 6 April 2016 to have the opportunity to gain
Pre-registration input taxNovember 13, 2014
There are special rules that determine the recoverability of VAT incurred before a business registers for VAT. This type of VAT is known as pre-registration input VAT. There are different rules for the supply of goods and supply of services, but VAT can only be reclaimed if the pre-registration
Scottish carrier bag charge introducedNovember 13, 2014
A charge for single use carrier bags has been introduced in Scotland. With effect from 20 October 2014 a minimum charge of 5p has been introduced on single use carrier bags supplied in Scotland. From this date, single use carrier bags will no longer be given away free when people buy goods. This
Government to waive VAT on Tower of London poppiesNovember 13, 2014
The Government has announced that they are to waive the VAT equivalent of the estimated 1.1 million from the sale of the poppies used within the First World War commemorative installation at The Tower of London. The Government will use some of the money collected from the LIBOR fines imposed on the
Employment allowance - six month updateNovember 13, 2014
The employment allowance of 2,000 per year for all businesses and charities was made available from April 2014. The allowance is offset against the employers Class 1 secondary NICs and can be claimed as part of the normal payroll process through the regular payroll processes. The maximum amount
VAT on Christmas partiesNovember 13, 2014
Now is the time that many businesses are preparing for Christmas parties for staff as well as for customers and prospective clients. VAT incurred on Christmas parties for staff can be recovered subject to the usual rules. If staff partners/spouses or clients are also invited to the event the input
Collecting tax credit overpaymentsNovember 13, 2014
HMRC has issued a news briefing to advise a change to the way it collects some tax credit overpayments. There has been a lot of adverse press coverage criticising HMRC for the way it collects tax credit overpayments. Until very recently HMRC did not have the capabilities to collect old debts from
Personal tax summaries are in the postNovember 6, 2014
HM Treasury have now prepared the first batch of personal tax summaries which will be sent to taxpayers across the UK from 3 November 2014. The annual tax summary will show individual taxpayers how much Income Tax and National Insurance Contributions they paid in 2013-14 and includes a table and
Avoid the Self Assessment rushNovember 6, 2014
The deadline for submitting 2013-14 Self Assessment tax returns online is 31 January 2015. All filings should now be made online as the deadline for submitting paper returns, 31 October 2014, has passed. Taxpayers that still submit a paper return after the deadline will receive an automatic 100
VAT tax scheme failsNovember 4, 2014
The Upper Tribunal has decided that a circular scheme set up on behalf of Huddersfield University to ultimately, avoid the VAT costs on a refurbishment project was abusive. The scheme will now be disregarded for VAT purposes. The University had entered into a circular and self-cancelling lease and
CIS employed or self-employed?November 4, 2014
There are sound tax reasons for contractors to engage the services of self-employed labour as opposed to employed labour. For example there are significant savings in employer’s National Insurance. There are advantages too for the self-employed subcontractors: they are treated as a business for
HMRC’s High Net Worth UnitOctober 30, 2014
HMRC's High Net Worth Unit (HNWU) is a specialist division established in 2009 to deal with taxpayers who have wealth in excess of 20 million. HMRC uses details from tax returns and other public information databases to identify some 6,200 of the country’s highest taxpayers. In certain
Irish Government calls time on controversial tax arrangementOctober 30, 2014
In the recent Irish Budget, the Irish finance minister Michael Noonan announced the abolition of the controversial 'double Irish' tax scheme that has enabled many large US multinationals to dramatically reduce their tax bills. The Irish Government was under enormous pressure from parties including
New MOSS portal launchedOctober 30, 2014
On 1 January 2015 the VAT place of supply for businesses providing digital services such as broadcasting, telecoms and e-electronic (BTE) services to consumers (B2C) will change. Currently these supplies are taxed in the Member State in which the business is established. However, from 2015, the
Claiming back tax overpaid on savingsOctober 23, 2014
The R40 form 'Claim for repayment of tax deducted from savings and investments' is available on HMRC’s website. Banks and building societies usually deduct 20% tax on savings interest. Individuals who have paid too much tax on interest can use the R40 form to claim back any overpaid tax. Claims can
New legislation for coding out debtsOctober 23, 2014
The legislation that will enable a significant increase in the coding threshold for taxpayers to have an underpayment collected via their tax code, came into effect on 1 November 2014. From 2015-16 the coding out limit will increase from 3,000 to 17,000 based on a graduated scale. The maximum
Changes to the intestacy rulesOctober 23, 2014
The intestacy rules that govern how assets are divided if someone dies without making a will changed from 1 October 2014. The changes do not affect people who die with less than 250,000 in assets but for those that leave more the changes are very significant. Prior to 1 October 2014, a surviving
Consultation announced on hybrid mismatchesOctober 16, 2014
The government has announced a clamp-down on the decade-long use of ‘hybrid mismatches’, a technique commonly used by multinational companies to significantly reduce their tax bills. In simple terms, hybrid mismatch planning schemes exploit differences between countries’ tax rules to avoid paying
New taskforces to tackle VAT fraudOctober 16, 2014
Two new specialist taskforce teams have recently begun to target businesses in north-west England and north Wales who try to fraudulently reclaim VAT. The taskforces are comprised of multiple teams from across HMRC including special investigations, local compliance and criminal investigation units
Credit Card Sales campaign launchedOctober 16, 2014
HMRC has launched a new campaign that offers individuals and businesses, who accept credit and debit card payments, the opportunity to bring their affairs up to date. Any individual or company that accepts credit and debit card payments should be registered with HMRC and have declared all of their
Chancellor visits new homes developmentOctober 9, 2014
Earlier this week the Chancellor visited the Kings Rise housing development in Birmingham to celebrate the government’s landmark Help to Buy housing scheme. The Help to Buy scheme was launched on 8 October 2013 and was extended a few months later. The scheme allows qualifying buyers with a 5%
Stamp Duty late payment penaltiesOctober 9, 2014
New penalties for late payment of Stamp Duty on share or land transactions came into effect on 1 October 2014. In general, documents must be stamped and any Stamp Duty paid within 30 days of when the documents were signed and dated (‘executed’). For example, for the purchase of property, Stamp Duty
International tax crime conferenceOctober 9, 2014
The heads of tax crime investigation in 44 countries recently met, together with the Financial Action Task Force and World Customs Organisation at Europol Headquarters in the Hague. This was the second meeting of the OECD Forum of Heads of Tax Crime Investigation. The event focused on key threats
Accelerated Payment NoticesOctober 9, 2014
New provisions in the 2014 Finance Act give HMRC significant new powers to demand upfront payment of any disputed tax associated with avoidance schemes by issuing an accelerated payment notice. Accordingly, users of certain tax avoidance schemes may receive an accelerated payment notice (APN) to
HMRC warns of phishing emailsOctober 9, 2014
HMRC has tweeted a number of times recently continuing its campaign to warn taxpayers of the danger of phishing emails. Phishing emails are sent by fraudsters who try and trick recipients into thinking an email has been sent by HMRC. HMRC is aware of numerous instances of phishing emails being sent
University loses tax avoidance caseOctober 9, 2014
HMRC has successfully appealed a decision of the First-tier Tribunal that originally found in favour of the taxpayer. The case concerned the refurbishment of a derelict mill by the University of Huddersfield. In 1996, the University began working on a site known as East Mill that the University
VAT Retail Export SchemeOctober 2, 2014
The VAT Retail Export Scheme or Tax-Free Shopping scheme allows individuals not resident in the EU to obtain a VAT refund on goods bought in the UK and taken out of the EU. The scheme does not apply to services, for example hotel bills. HMRC has been reviewing the scheme since Budget 2013 with a
Official rate of interestOctober 2, 2014
The official rate of interest on an employment related loan is to remain at 3.25% for the next quarter beginning 6 October 2014. The 3.25% rate applies from 6 April 2014, the first time the rate had changed since April 2010. A change in the rate is only made during the year if there are significant
Alcohol smuggling targetedOctober 2, 2014
Earlier this year HMRC launched a new initiative to tackle some of the UK’s most notorious hotspots for the sale and supply of illicit tobacco and alcohol as part of its overall remit to tackle tax fraud. The initiative has seen HMRC officers carrying out checks on shops, warehouses, self-storage
Tribunal case – National Insurance ContributionsOctober 2, 2014
The First-tier Tribunal recently examined the entitlement of a retired taxpayer to the State Pension. The taxpayer, a Mr James Plant, claimed that he had worked since leaving school at 15 in 1962 until he emigrated to Australia in 1990. Mr Plant was clear that with the exception of a year of ill
Tax fraud solicitor sentencedOctober 2, 2014
A solicitor found guilty of tax fraud has been sentenced to ten years in jail following an investigation by HMRC. The solicitor from Leicester was found guilty of falsifying property conveyancing documents and lying to his clients. The solicitor, Shameer Sacranie, absconded and was sentenced in his
Chancellor announces new proposalsOctober 2, 2014
The Chancellor made some interesting proposals in his speech at the recent Conservative Party conference held in Birmingham. The first of these was a proposed freeze benefits for those of working age for a two year period and would come into effect from 2016 if the Conservatives win the next
Furnished Holiday LettingsSeptember 25, 2014
The Furnished Holiday Let (FHL) rules allow holiday lettings of properties that meet certain conditions to be treated as a trade for certain tax purposes. Individuals, partnerships, trustees and companies who let furnished holiday accommodation situated within the UK or elsewhere in the EEA can
VAT number verificationSeptember 25, 2014
The European Commission website includes an on-line service which allows taxpayers to check if a quoted VAT number is valid. The service allows taxpayers to obtain a certificate to prove that they checked that a VAT registration number was valid at a given time and date. This system has been
Coding out debtsSeptember 25, 2014
Taxpayers can elect to have an underpayment of less than 3,000 collected via their tax code provided they are in employment or in receipt of a UK-based pension. The coding adjustment applies to certain debts such as Self Assessment liabilities and tax credit overpayments. Instead of paying off
US crackdown on multinational tax avoidanceSeptember 25, 2014
In a move that may stop a number of current take-overs of UK companies by US buyers, the US Department of the Treasury and the Internal Revenue Service (IRS) have jointly announced the introduction of some important new measures to target US multinationals that seek to avoid US tax. The measure
Taskforces to tackle VAT fraud in the Midlands and NottinghamSeptember 25, 2014
Two new specialist taskforce teams have recently begun to target businesses in the Midlands and Nottingham who try to fraudulently reclaim VAT, in particular businesses being set up purely for the purpose of making false VAT repayments claims. The taskforces are part of HMRC’s wider remit to tackle
Pensions – annual allowanceSeptember 18, 2014
The annual allowance for tax relief on pensions was reduced to 40,000 (from 50,000) with effect from 6 April 2014. Pension providers are in the process of writing to pension scheme members contributing more than 40,000 per year. Finance Act 2011 legally requires pension providers to send these
Employment intermediariesSeptember 18, 2014
There are special rules that apply when an intermediary must treat a worker they provide to a UK-based client as an employee for Income Tax and National Insurance purposes. Since 6 April 2014, a worker is treated as an employee if the following conditions apply: is placed with a UK-based
National Minimum WageSeptember 18, 2014
New National Minimum Wage (NMW) rates came into effect on 1 October 2014. The hourly rate of the NMW increased to 6.50 (a rise of 19p) adults aged 21 years and older. The rate for apprentices under the age of 19 or in the first year of their apprenticeship increased to 2.73 (a rise of 5p).