New Caring Credits from 6 April 2010
Home Responsibilities Protection (HRP) is a scheme which helps protect your State Pension. HRP can help if you're not paying National Insurance contributions because either you don't work, or your earnings are low as you're caring for either a child, or a sick or disabled person.   Currently, you automatically receive ...

Year End Tax Planning

From 6 April 2010, those earning in excess of £150,000 will be subject to a super tax of 50% on income over that threshold.

Further, personal allowances will be restricted for those earning more than £100,000 at the rate of £1 for every £2 of ...

VAT Online Filing
What

From 1 April 2010, certain businesses will be required to file their VAT returns online, together with making their VAT payments electronically.

Whilst filing online gives an extra seven days for businesses to submit their returns, please note this will ...

New Rating Assessments

The new rating assessments come into effect on 1 April 2010 and will result in higher rates being payable on many commercial properties.  The number of appeals are expected to increase from this date, with the new assessments being based on the rental value of the property as at April ...

Tax Health Plan (THP)

HMRC's new disclosure opportunity aimed at taxpayers in the medical profession has been extended to dentists.

To remind you, there is a deadline for notifying an intention to disclose and this is 31 March 2010.

CIS and Business Payment Support Service Agreements

Where a business is experiencing cash flow problems, it may be able to make an agreement with HMRC's Business Payment Support Service (BPSS) to defer PAYE and CIS payments.

Where such an agreement is made, the overdue amount does ...

Independent Business Reviews - BPSS

With effect from April 2010, a business applying for time to pay a debt of £1,000,000 or more under the Business Payment Support Service will have to engage, at their own expense, a suitably qualified professional adviser to carry out an Independent Business Review (IBR) in support ...

Time Limits and Elections/Claims

The change to time limits on claims extends to most elections and claims relating to self assessment tax returns where the current period is five years and ten months.  This time limit will become four years for all claims submitted after 31 March 2010.  Examples are error or ...

Capital Allowances - First Year Allowances
As a reminder, companies have until 31 March 2010 to incur capital expenditure and qualify for a 40% first year allowance in addition to the annual investment allowance.   The deadline for unincorporated businesses is 5 April 2010.

Dairy Farmers of Britain - Tax Treatment on Shares and Debt

HMRC have issued a Brief to discuss the tax treatment, including loss claims, that will be available to the members of Dairy Farmers of Britain (DFB) in respect of their shares and debt in the company, the shares being now of negligible value.

Please ...

Furnished Holiday Lettings - Capital Gains Tax
Furnished holiday lettings will no longer continue to enjoy their favourable tax status from 6 April 2010.   After that date, it will only be in relatively rare circumstances in which letting activities are conducted in such a manner that they should properly be considered to be a trade in their own right, without ...

Tax Refunds - Time Limit Changes

Tax Refunds -  Time Limit Changes

Whilst the time limits for HMRC to make a discovery assessment on taxpayers is broadly shortening to four years (see HMRC discovery powers - changes to time limits).  The time limits for making a claim for a repayment of tax are also shortening to a ...

“Medical Professionals” – may include “Dentists”
Whilst the original announcement on the new “Tax Health Plan” (see Medics Disclosure Opportunity - Tax Health Plan) only included professionals registered with the General Medical Council, HMRC are planning to meet the General Dental Council and the British Dental Association with a view to potentially ...

Online Dispensations
An HMRC Dispensation Notice removes the requirement to report certain expenses and benefits on forms P11D or P9D.  There is also no need to pay any tax or National Insurance on items covered by a dispensation.

Employers can now apply for a dispensation online and the new application form ...

Construction Industry Scheme
HMRC are now beginning to catch up with their workload on the Construction Industry Scheme (CIS) with a number of cases being heard by the First-tier Tribunal recently.

As the penalty regime is set to become even more harsh from 1 April 2010 it is becoming increasingly important that you comply with the ...

January Deadline
The deadline for filing online self assessment tax returns is midnight, Sunday 31 January.

Whilst paper returns must have already been submitted by 31 October, a few taxpayers (e.g. non resident companies and MPs) will still be filing a paper return.

The deadline ...

Pre Budget Report - National Insurance Bad News

Pre Budget Report - National Insurance Bad News

Whilst the Pre Budget Report included good increases to basic pensions, child benefits as well as the deferment of the increase in small corporate tax rates, the bad news was that all National Insurance rates were increased by a further 0.5% which, ...

HMRC Discovery Powers – Changes to Time Limits

Clients want to know when their tax returns have been accepted and generally, it is fair to say that, once the enquiry window has closed, HMRC have accepted the figures. 

The Enquiry Window

Provided the return is delivered ...

Retail Gift Aid Scheme – Tax Relief on your Old Handbag and Records!

You will all be familiar with being asked to gift aid an entrance fee to a zoo or to gift aid your sponsorship to a colleague doing a 10k run for charity.  By gift aiding your contribution or entrance fee, the charity is then able to claim back the basic rate of tax applying to the gift as well ...

Medics Disclosure Opportunity – Tax Health Plan

A new “Tax Health Plan” has been launched by HMRC, aimed at medical professionals.  The plan applied to individuals including doctors, hospital consultants and cosmetic surgeons registered with the General Medical Council and enables them to “come clean” on any previously ...

Share Gifts to Charities – Anti Avoidance

HMRC have issued guidance relating to an avoidance scheme that aims to generate gift aid relief and income tax relief on the gift of shares.

A donation to a nominated charity is required and in return shares are received from an unnamed non UK “philanthropist”.  ...

New Disclosure Opportunity Registration Period Closes

Whilst taxpayers were required to notify HMRC of their intention to disclose under the New Disclosure Opportunity (NDO) by 4 January 2010, HMRC's David Hartnett has said that the department is now beginning to use data obtained from banks to identify people who have not made disclosures despite having ...

Tax Relief on Pensions
HMRC have issued a Fact sheet on the proposed restriction of tax relief on pension contributions for high earners, due to come into force on 6 April 2011.  The Fact sheet also discusses the anti-forestalling provisions that have been in place since 22 April 2009. 

Personal Import Allowances

HMRC have issued a press release on changes to the value of goods that travellers can personally bring into the UK from a non EU country, or receive through the post without needing to pay Customs duty or VAT.  The changes come into effect on 1 January 2010 and travellers arriving in the UK by ...

Self Assessment Returns - January Filing Deadline

The 31 October deadline for paper returns has now passed, which means you must file your return online by 31 January 2010 in order to meet the filing deadline for your tax return, year ended 5 April 2009.

Any returns submitted after that date will be subject to a £100 ...

New Disclosure Opportunity - Registration Deadline Extended

The registration deadline for the New Disclosure Opportunity (NDO) has been extended by HMRC.

Individuals with unpaid taxes from offshore accounts and assets previously had until 30 November to notify HMRC that they wanted to bring their tax affairs up to ...

New Fuel Rates - 1 December 2009
Where an employer pays an employee’s car fuel, the employee will only be able to avoid the car fuel benefit charge if the amount they then repay the employer in respect of private fuel at least equals the amount published under the advisory fuel rates.

The following rates apply to all journeys on or after ...

Floods Helpline

A dedicated helpline has been set up by HMRC for taxpayers facing difficulties meeting their tax obligations due to the recent floods.

The number is 0845 3000 157 and is open between 8am and 8pm, Monday to Friday and 8am to ...

2009 Pre Budget Report
Click the link below to download the 2009 Pre Budget Report Download Now

New Disclosure Opportunity - Registration Deadline Extended

The registration deadline for the New Disclosure Opportunity (NDO) has been extended by HMRC.

Individuals with unpaid taxes from offshore accounts and assets previously had until 30 November to notify HMRC that they wanted to bring their tax affairs up to date. This deadline has now been extended until 4 ...

Tax Credits
Please remember that if a provisional claim for tax credits was made by 31 July 2009, the deadline for submitting actual final figures for 2009/10 tax credit claims is 31 January 2010.

Your Charter

HMRC has finally published the new Taxpayer’s Charter, nearly two years after it was first proposed. “Your Charter” sets out the nine rights and three obligations of individuals, businesses and other groups dealing with HMRC and is intended to improve the relationship between HMRC and taxpayers. ...

PAYE – Advisory Fuel Rates
A month’s notice used to be given where the advisory fuel rates changed, with the changes not being effective until one month after the announcement was made. The notice period is being withdrawn, with rate changes being able to be implemented with immediate effect.   If rates rise, employers will have ...

TaxBack Campaign Launched – Windfall for Pensioners
HMRC has launched its TaxBack campaign, which aims to encourage pensioners who have overpaid tax on interest from savings to claim it back and register for savings interest to be paid gross in future, if they are non-taxpayers.   HMRC are writing to pension credit recipients, asking them to check if they have overpaid ...

Online Coding Notices
HMRC has developed a PAYE desktop viewer (PDV) that enables employers and agents to manage coding notices received for employees online. The software enables employers and agents to download notices and codings from the Revenue’s data provisioning service (DPS) and manipulate them in a variety of ways. The ...

VAT Rate Change – Bringing in the New Year

HMRC have published a helpful brief (Revenue and Customs Brief 68/09) detailing special arrangements for businesses operating beyond midnight on 31 December 2009.

Under ...

Associated Companies - Splitting the Corporation Tax Rate
Companies associated with each other are currently required to split the small companies’ corporation tax band of £300,000 when calculating the rate of corporation tax that should apply to their taxable profits.   Association is currently based on an attribution of rights, including voting rights and ...

Pensions and Tax Avoidance Schemes
A new disclosure requirement has been added to the Tax Avoidance Schemes (Prescribed Descriptions of Arrangements) Regulations SI 2006 no. 1543, as amended by SI 2009 no. 2033.      Form AAG1 is required to be completed where a Disclosure of a Tax Avoidance Scheme (DOTAS) is required and this form ...

Saving up ‘Negligible Value’ Losses
CGT losses are normally available for offset against gains of the year in which the loss arises, or in subsequent years. However, in some cases, a loss can be offset against income, notably, a loss on subscribed for shares in certain trading companies.   A loss will arise when there is an actual disposal or ...

Health Screening and Medical Checkups

Health screening and medial checkups provided to retired employees under an employer financed retirement benefit scheme will be exempt from the charge to tax under Regulations coming into force on 1 December 2009.

Finance Act 2009 provided for ...

Non-Taxpayers’ Savings

Form R85 may be completed by a non-taxpayer to have their bank interest paid gross rather than having basic rate tax deducted at source.

However, even where such a form has been completed and submitted, the bank may still pay the interest net ...

Current Year Tax Losses

The Business Payment Support Service (BPSS) was announced by the Chancellor in the 2008 Pre-Budget Report.

The service is designed to assist all businesses that will be unable to pay their tax and covers most taxes and duties ...

Pre-Budget Report Date Announced
The Chancellor has announced that he will deliver his Pre Budget Report (PBR) to Parliament on Wednesday 9 December at 12.30pm.

Sideways Loss Relief Restricted

The Financial Secretary to the Treasury, Stephen Timms, has announced details of legislation to counter a number of tax avoidance schemes using the sideways loss relief and double tax relief rules. The legislation will be effective from 21 October 2009 and is intended to impact on loss makers who have ...

Self Assessment Tax Return Penalties

Instructions by HM Revenue and Customs on the penalty position for the late filing of self assessment tax returns have not been clearly set out on the tax returns themselves.

The normal filing date for a self assessment tax ...

Learning Together

HM Revenue and Customs are in the process of running a programme of 40 events on powers for compliance checks  and the new penalty regime across the UK between October and March under the Department’s ‘Learning Together’ roadshows.

Tax Returns - 31 October 2009 Deadline

HM Revenue & Customs have confirmed that whilst the 31 October filing deadline for self assessment tax returns is statutory and remains unchanged, having a paper return stuck in a postal strike counts as a reasonable excuse under the guidelines.

Gone Phishing

Despite continued warnings by HM Revenue & Customs, and action being taken to disrupt these attacks with the cooperation with other law enforcement agencies in the UK and overseas, the online attacks, known as phishing, have continued in October, with an unprecedented 10,000 reports of the fraud ...

VAT Refunds on Postal Services

Supplies of postal services made by the ‘public postal services’ are exempt from VAT under EU law.  In the UK, public postal services are limited to Royal Mail and covers all of its postal services except for those supplies made by the Royal Mail under terms which ...

Dangers on ‘False Self Employment’ Proposals

The consultation period on HM Revenue & Customs’ ‘False Self Employment in the Construction Industry’ paper ended on 12 October and has been subject to heavy criticism from leading tax bodies.

Whilst the UK’s leading construction ...

Working Tax Credit Entitlement

Many people who are entitled to a cash increase in their income are missing out simply because they assume they are not entitled to Working Tax Credits (WTC).

HMRC have therefore set up an online calculator enabling any one who thinks they may be eligible for WTC to quickly ...

Tips and National Minimum Wage

For pay periods starting on or after 1 October 2009, tips, gratuities, service charges and cover charges will not count towards National Minimum Wage pay in any circumstances.

Please contact your adviser at Albert Goodman if ...

Employer Bulletin 33

Issue 33 of HMRC’s Employer Bulletin has been published.  The full document may be viewed at www.lexisurl.com/emp33 but the main article informs employers that where they have used HMRC’s free Online Return and Forms, any ...

Cash ISA Increases

From 6 October 2009, any individual who will be aged 50 or over on or before 5 April 2010 will be able to increase their cash ISA deposits from £3,600 per annum to £5,100 per annum.

In all other cases, the annual ...

Paper Self Assessment Tax Returns
Paper self assessment tax returns received after 31 October 2009 will be late and may be subject to a late filing penalty.  However,

1) Tax returns that are in an HM Revenue and Customs office letterbox when it is first opened on Monday 2 November will be treated as if they had been received on 31 October ...

Increase in Tax Rates

Currently, the trust rate of tax on dividends is 32.5% and on other income, 40%.  From 6 April 2010 these rates will increase to 42.5% and 50% respectively.  Any tax paid by trustees is put into a “tax pool”, with the exception of dividend tax credits.  ...

Agricultural Property in The European Economic Area
Agricultural property relief (APR) is a valuable relief from inheritance tax (IHT), available to both farmers and landowners.  However, historically, the relief was restricted to land in the UK, Channel Islands and the Isle of Man.

As a result of intervention by the European Commission, the UK Government ...

Flat Management Companies

Landlord and Tenant Act 1987, Section 42, provides that a flat management company can be treated as a Discretionary and Accumulation Trust.

This means that interest paid on a deposit account made by such a company may, in some ...

Bradford and Bingley Shares

HMRC have published guidance on their understanding relating to the valuation of Bradford and Bingley shares for inheritance tax purposes.

For the purposes of completing inheritance tax accounts, on a Without Prejudice basis, ...

Effective Dates of Payment

Serious consequences may arise from the simple entry of an incorrect date into HMRC’s self assessment computer system when dealing with carry back claims.

Carry back claims include:-

Taxpayer Debt Recovery

The Treasury has announced that, from Spring 2010, HMRC will start to trial the recovery of working tax credit and self assessment tax debts through deductions from benefit payments, effectively allowing the Department for Work and Pensions to collect HMRC debts.

Online Filing - HMRC and Companies House

All company tax returns, including the return form, company accounts and tax computations, must be submitted online to HMRC from April 2011.

Companies House has announced that in order to reduce potential administrative burdens ...

New Disclosure Opportunity for Offshore Accounts

HMRC’s New Disclosure Opportunity, allowing people with unpaid tax liabilities linked to offshore accounts or assets to settle at a favourable penalty rate, started on 1 September and will run until 12 March 2010.

Taxpayers ...

Self Employed Registration

The process that taxpayers need to follow to register as self employed with HMRC has been updated.

The update broadly requires you to have a National Insurance number before you are able to register as a self employed person.

If you do not have a National ...

Liechtenstein Disclosure Facility

The Liechtenstein Disclosure Facility (LDF) will run from 1 September 2009 to 31 March 2015.

Under its terms, banks and financial intermediaries in Liechtenstein will be obliged to identify clients who they believe to be UK resident (both individuals and companies), who will ...

Interest Rates on Tax Refunds/Outstanding Payments

The rate of interest on repayments will be the Bank of England base rate minus 1, subject to the minimum rate of ½%.  The rate of interest on unpaid tax will be the Bank of England base rate plus 2.5%.

The new rates ...

Reinvesting Former Icesave ISAs

Individuals who had Icesave Individual Savings Accounts (ISAs) have until 5 October 2009 to invest the compensation received from the Financial Services Compensation Scheme (FSCS) in an ISA with another provider.

Investors who have not yet received their compensation and/or ...

Employer Online Filing

Compulsory online filing will start to apply to small businesses and employers from April 2010.  While in principle the ICAEW’s Tax Faculty supports the move to online filing, it has published a paper containing a number of criticisms and suggested amendments.

The ...