Latest Business Tax

Changes for Farmers in VAT flat rate scheme

  The decision has recently been published in a European Court of Justice case, Shields and Sons Partnership v the Commissioners for HM Revenue & Customs. The case revolved around the authority of HMRC to remove the partnership from the VAT flat rate scheme for farmers. It is reported that the partnership had benefited over…

Actors: IR35 tax rules will probably apply.

  In a recent tax tribunal test case, relating to the well-known actor Robert Glenister, HMRC were challenged as to whether the IR35 intermediary tax rules should apply to an actor earning his living through a personal service company.   As is typical with individuals providing their personal services through an intermediary company, Mr Glenister…

HMRC “Connect”: Now checking businesses that should VAT register.

We have known since 2010 that HMRC has a computer programme, called “Connect”, that is collecting data from a variety of sources about taxpayers, and then using this intelligence to check on correct tax compliance. We have known that these data sources include Banks, Social Media, DVLA, Local Authorities, Foreign Tax Jurisdictions and Land Registry.…

Simple Assessment

  HMRC have now implemented their ‘Simple Assessment’ project, where they use the information already available to them from employers, pension providers, the DWP and banks to calculate the tax for those with straightforward or ’Simple’ tax affairs, without the need for a tax return to be completed.   In theory this sounds like an…

R&D Tax Relief: HMRC publish take-up report.

R&D tax relief, to provide government subsidies to those companies that develop innovation products, services or systems, has been with us for 17 years now. The latest HMRC R&D tax relief take-up report, encouragingly, shows that the following recent improvements to the scheme have increased the amount of tax relief claimed by 22% over the…

Guidance for employers

HMRC have issued their latest guidance to employers in the August edition of the Employer Bulletin. This publication, which is issued every two months, includes articles on: Reporting Pay As You Earn in real time Optional Remuneration Arrangements Tax codes – Get it right first time PAYE penalties – continuation of the risk-based approach to charging penalties…

R&D Tax Relief: HMRC closes loophole.

Companies that are developing innovative new products, services or systems have long understood the generosity of the R&D tax relief rules. These give a notional 130% uplift to eligible costs in the company’s corporation tax computation. Such eligible costs include ‘employee costs’, which hitherto has included all ‘reimbursed expenses’. This has always seemed overly generous…

Further move towards dealing with HMRC electronically

HMRC have for some time been keen for taxpayers to make their tax payments electronically.  They have recently updated their guidance to show that from 15 December 2017 it will no longer be possible for taxpayers to pay self-assessment tax, or in fact any other type of tax, directly at the Post Office.   This…

Common Tax Errors Landlords Make

  HMRC have a Let Property Campaign to try to encourage landlords who have not previously declared their taxable income and gains to come forward as soon as possible, in order to bring their tax affairs up to date. The let property campaign is aimed at individual landlords with residential property in the UK or…

HMRC’s latest update confirms acceptance of tax calculations from agents

  HMRC’s latest Agent Update announces their plan to withdraw paper copies of the SA302 (for mortgage application purposes) for taxpayers whose self-assessment tax returns are submitted by an agent.  This will take effect from 4 September 2017. To date we have been calling HMRC in order to obtain a paper copy of a client’s…