- 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 launchedDecember 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 3½% 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 come into effect from 1 January 2015. Currently these supplies are taxed in the Member State in which the business is established. However, from next month, the place of supply will be determined by the location
- 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 deadline for submitting 2013/14 tax returns is now just over 8 weeks away, 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
- 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).
- RTI late filing penaltiesSeptember 18, 2014
- The vast majority of employers are now reporting their PAYE information in real time. Following the introduction of RTI in April 2013, it was decided to stagger the start of the in-year late filing and payment penalties to give employers more time to adapt to reporting in real time.
The new late
- VAT liability of construction servicesSeptember 18, 2014
- The First-tier Tribunal recently heard an appeal by a construction company regarding the VAT liability of construction services supplied at a residential property in a North London suburb. The homeowners had sought and been granted planning permission for major works to the property. The planning
- Disclosure opportunity for landlordsSeptember 11, 2014
- Landlords that may owe tax, whether through misunderstanding the rules or deliberate evasion, are being targeted by HMRC in a campaign that was launched last year. Unusually, the campaign does not currently have a finish date and will run until at least March 2015. HMRC will allow landlords to come
- Exemptions from CGTSeptember 11, 2014
- Capital Gains Tax (CGT) is a tax on the profit made on the disposal of an asset that has increased in value. Whilst most taxpayers are aware of their annual CGT tax-free allowance (currently £11,000) and the exemption for the qualifying sale of the family home there are other items that are exempt
- Online trader jailedSeptember 11, 2014
- An online trader has been sentenced to two years in jail for failing to declare the sales he made online. John Woolfenden from Radcliffe sold DVDs, CDs and games using online portals such as Play.com, Playtrade and eBay. He was found guilty of evading almost £300,000 of unpaid taxes and interest and
- HMRC launches new property taskforceSeptember 11, 2014
- New specialist taskforces have recently been launched to target property tax dodgers in the south west and south Wales. According to HMRC the taskforce will target those who have sold one or more properties and haven’t paid Capital Gains Tax or disclosed rental income.
The taskforces are part of
- Paper Self Assessment return deadlineSeptember 11, 2014
- Taxpayers that continue to submit paper Self Assessment returns are reminded that the deadline for submitting the 2013-14 return is 31 October 2014. Taxpayers who submit their Self Assessment return late will become immediately liable to a £100 late filing penalty. The penalty will apply even if
- Help to Buy: schemes updateSeptember 4, 2014
- The Help to Buy mortgage guarantee scheme opened on 8 October 2013 and was extended a few months later. The scheme allows qualifying buyers with a 5% deposit 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 as existing home owners
- Advisory fuel rates for company carsSeptember 4, 2014
- New advisory fuel rates are effective from 1 September 2014. 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
- Business record checks updateSeptember 4, 2014
- 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 £30m.
According to insurers PFP, HMRC business record
- The NISA effectSeptember 4, 2014
- The New ISA (NISA) that was announced by the Chancellor as part of the 2014 Budget announcements 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 provides savers with the ability to transfer
- Autumn statement 2014September 4, 2014
- The Chancellor, George Osborne has announced that he will make his Autumn Statement to the House of Commons on 3 December 2014. The statement will be used to give an update on the state of the economy and will respond to the economic and fiscal outlook published by the independent Office for Budget
- Direct recovery of debts by HMRCSeptember 4, 2014
- In the Budget earlier this year the Chancellor announced that the Government was looking at introducing a new power called Direct Recovery of Debts that would allow HMRC to recover Income Tax debts directly from taxpayer’s bank and building society accounts. A consultation was launched in May of
- Marginal rate of Income TaxAugust 27, 2014
- For high earning taxpayers the personal allowance is gradually reduced by £1 for every £2 of income over £100,000 irrespective of age. This results in the total loss of the personal allowance for taxpayers that had a total income over £118,880 in 2013/14 and over £120,000 in the current tax year.
- Paper tax discs to be discontinuedAugust 27, 2014
- The end of paper tax discs for cars, which were first introduced in 1921, is nigh. From 1 October 2014, the requirement to display a motor disc on a vehicle windscreen will be removed. In future, cars will be checked against the DVLA’s electronic register and we will see an increased use in number
- New crackdown on illicit tobacco and alcoholAugust 27, 2014
- HMRC has 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. HMRC officers will lead new enforcement operations in high risk areas across the UK.
The initiative will see
- Tackling offshore tax evasionAugust 27, 2014
- The Government has been targeting offshore tax avoidance and evasion and there have been a number of recent disclosure opportunities that offered taxpayers the opportunity to come forward and make a disclosure, with beneficial terms. In general, making a voluntary disclosure can result in
- Reduced charges for calling HMRCAugust 27, 2014
- Over the last year or so, 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
- Deliberate tax defaultersAugust 27, 2014
- HMRC has published its seventh list of deliberate tax defaulters. The list includes fourteen individuals, businesses and companies and lists the amounts on which penalties are due and the amount of penalties charged. One of the companies listed, a Manchester based food and beverage business had to
- National Minimum WageAugust 21, 2014
- The new National Minimum Wage (NMW) rates will come into effect on 1 October 2014. The hourly rate of the NMW will increase to £6.50 (a rise of 19p) for adults aged 21 years and older.
The rate for apprentices under the age of 19 or in the first year of their apprenticeship will increase to £2.73
- New edition of the Employer BulletinAugust 21, 2014
- HMRC has released the latest issue of the 'Employer Bulletin' publication which includes summaries of recent changes and updates that have been announced which are relevant to employers and agents.
The topics covered in the latest edition include the following:
Employment allowance. The
- Paper Self Assessment returnsAugust 21, 2014
- The 2013-14 tax return deadline for taxpayers who continue to submit paper Self Assessment returns is 31 October 2014. Tax payers who are late submitting a Self Assessment return will be liable to a £100 late filing penalty. The penalty will apply even if there is no liability or if any tax due is
- PAYE tax refundsAugust 21, 2014
- HMRC’s annual reconciliation of PAYE for the tax year 2013/14 is well under way. In the majority of cases, taxpayers that pay tax through the PAYE system will have paid the correct amount of tax. However, if too much or too little tax has been paid taxpayers will be sent a P800 form.
- Non-residents claiming personal allowancesAugust 21, 2014
- An interesting consultation document has been issued by HM Treasury which looks at the possible restriction of the UK personal allowance entitlement for non-residents. Currently, many non-residents with taxable income arising from the UK can benefit from the personal allowance.
- Employee Benefit Trusts - an updateAugust 21, 2014
- Back in 2011, HMRC announced the terms on which it was prepared to settle open enquiries into Employee Benefit trusts (EBT) and similar arrangements without the need for litigation. This was known as the EBT Settlement Opportunity (EBTSO). These arrangements typically sought to avoid or defer the
- Duty free limits for travellersAugust 14, 2014
- Here is a reminder for travellers of their duty and tax free allowances whilst travelling over the summer 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 for your
- The Statutory Residence TestAugust 14, 2014
- The rules that determine if someone is resident in the UK for tax purposes are known as the Statutory Resident Test (SRT). Historically, residence in the UK was determined by being in the UK in excess of 182 days in any tax year (6th April to 5th April) or by being resident in the UK for an average
- Coding out debtsAugust 14, 2014
- The coding threshold entitles taxpayers 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 applies to certain debts such as Self Assessment liabilities and tax credit overpayments. Instead of