MacDougall & Co
Current Hot Tax Topics include the following:
Tax on Income and Gains Outside the UK HMRC publish the rules online, but it contains mistakes. Read it
here. But contact us before relying on it.
RTI has arrived. If you need any help, please call us.
Universal Credit it looks like this tax credit will be almost impossible for a self-employed
person to get. Click here.
HMRC Information Powers including search and seizure.
Child Benefit will be withdrawn through an income tax charge from 7 January 2013 for households in which someone has an income
over £50,000 a year. The charge will apply gradually if the income is between £50,000 and £60,000. Only households
in which one individual has an income over £60,000 will no longer qualify for child benefit. This may change.
New Penalties for submitting your tax return late.
2012-13 Tax Rates at a glance.
2012 Budget at a glance.
Childcare Vouchers can save you tax. Click for how.
Millions of us owe the taxman money The recent news that many millions of us have paid the wrong tax is neither news to us nor the disaster that
the headlines suggest - for most people. In most cases it will be people in work who changed jobs who will have overpaid, and pensioners who have underpaid.
Unless you are an affluent pensioner it is very likely that HMRC will waive the amount due on an 'individual basis', but they will not publish this as policy because they
need to recover the unpaid tax from the handful of truly affluent pensioners who owe literally millions.
Finality - when is your tax 'agreed' with the Revenue? New time limits for you to claim a refund or until the Revenue cannot enquire into your tax return. See Time Limits
Finance Bill Following the "emergency budget" the Finance Bill has been published.
The new Pensions Tax Relief Anti-Forestalling Rules are painfully complex. But remember, you will not be affected if any one of the following apply: Your total pension contributions in the tax year did not exceed £20,000; You paid pension contributions regularly to 22 April 2009 and they have not increased; Your 'relevant income' is less than £130,000 in all the tax years 2007/08 to 2010/11 inclusive. And, even if none of these apply, the reduction in relief may not affect you. It is necessary to work through the detailed provisions to find out.
See the new Tax Charter, here http://www.hmrc.gov.uk/charter/charter.pdf
Capital Gains Tax Rates to Increase Massively? This is the current rumour. Why would any political party keep the rate of capital gains tax at 18% (or 10%) after the next election when income tax rates will be as high as 60%.
Partnerships A partnership is not a sham merely because it was set up to save tax. See the HMRC Inspectors' Manual at BIM 72065.
Take millions out of your limited company and pay only 21% tax with an Employee Benefit Trust (EBT).'Mini' EBTs still seem to work. Take the money out of your company, pay the corporation tax (currently 21% for small companies), and pay no more tax? It is possible.
Save over £17,000 in tax next year (2010-11)? Income shifting (moving income to a spouse and saving tax at 60%, 50%, 40% or even 20%) is still alive and well.
The Revenue have frightening new powers (from April 2009) This is an enormous change. More ...
Tax Rates and Allowances for 2009/10 www.icaew.com/index.cfm/route/134784/icaew_ga/en/Technical_and_Business_Topics/Tax_rates_and_allowances.
Can't Pay Your Tax? Including income tax, VAT, corporation tax, and national insurance - contact the HMRC Business Payment Support Line on 0845 302 1435 - open Monday to Friday 8.00am to 8.00pm, and Saturday and Sunday from 8.00am to 4.00pm.
100% Tax relief on Your Fixed Assets From April 2008 most items of plant will qualify for 100% tax relief in the year of purchase - the new Annual Investment Allowance allows you to invest up to £50,000 with a 100% tax claim per annum. To achieve the desired result, you must get advice from a suitably qualified person on this before you make any decisions.
The New Penalty Regime from April 2008 HMRC has a new penalty regime. See penalties.
Budget 2008 There was some interesting stuff in here. Give us a call if you would like to discuss it, see contact us. For an off-site summary, you could start at http://www.accountingweb.co.uk/budget/
Non Domicile Where do you stand, today? Should you be doing something? Draft legislation. See Residence and Domicile.
Income Shifting Will the proposed new legislation affect you? Call us for a free chat. See How to Contact Us.
HMRC gets bugging powers ... and will not need to seek external authorisation for any of its surveillance activities. How do you feel about that? Click for more.
Taxman Given Intercept Go-ahead Visit Accountancy Age to read this at www.accountancyage.com/accountancyage/news/2209068/taxman-given-intercept-ahead-3811901.
Residence and Domicile etc The changes are on the way. See provisional suggestions at Residence and domicile: Further details and new proposals.
CIS Monthly Return Penalties - Amnesty Ends Contractors must make monthly returns even if the return is a 'nil' return. Penalties have not been levied, to date, but at 20 October 2007 a penalty will be levied for each outstanding return. Also, a lot of employers are forgetting to sign the forms.
Inheritance Tax nil band up to £1,000,000? George Osborne says Tories will raise the Inheritance Tax nil rate band to £1,000,000.
Tax Relief on £50,000? Consultation suggests that small businesses may benefit from an initial annual allowance of up to £50,000 - spent on assets (not cars). If you would like up to date details, please contact us.
600,000 Pensioners have been given the wrong tax code The problem covers periods going back to 1983. 420,000 have underpaid tax. 180,000 have overpaid tax. If this is causing you a problem, please contact us.
Is Your Financial Adviser Regulated ? See www.fsa.gov.uk/pages/register to check if your financial adviser is regulated. In a recent case, a financial adviser conned his clients out of over £2 million to pay for his gambling. He had been unregulated since 1997.
Contractors with subcontractors A reminder: verification is not an employment status check. Verification and employment status are not the same. Being on the list as verified is not evidence that HMRC is granting guaranteed self employment status.
Arctic Systems The full text of the judgement can be found on the House of Lords website at: http://www.publications.parliament.uk/pa/ld200607/ldjudgmt/jd070725/jones.pdf
Arctic Systems On the 25 July the House of Lords judgement was in favour of the taxpayers in Jone v Garnett . On 26 July HM Treasury announced that legislation will be introduced to reverse the effect of the decision.
Offshore Bank Account? Want to take advantage of the HMRC 10% Incentive? Give us a ring. The deadlines are very tight.
Undeclared Tax Liability? Want to take advantage of the HMRC 10% Incentive? This applies to many situations, not just the highly publicised Offshore Accounts. Give us a ring. The deadlines are very tight.
CIS Deduction Rate now 20% ... from April 2007 the new rates of CIS deduction are to be 20% (currently 18%), and 30% for unregistered contractors (as expected).
Company Vans, again. Should you pay tax on your company van? www.hmrc.gov.uk/vans/van-facts.htm
The New Construction Industry Scheme - New Guidance from HMRC - www.hmrc.gov.uk/new-cis/new_guidance.htm
Childcare Vouchers - Warning: it is possible for some employees to be worse off by taking vouchers. The figures need to be looked at in each case. The interaction of childcare vouchers with tax credits can be hideously complex. Considerations include whether they are taken as part of a salary sacrifice scheme, the employees tax credit position, and their marginal rate of income tax. See some examples at www.litrg.org.uk/news/index.cfm?id=354
Use of Home HMRC to issue guidance on use of home claims for the self-employed.
Tax Efficient Childcare: from 6 April 2005 employers will be able to pay up to £50 a week tax and NIC free to employees to meet the costs of childcare for children up to the age of £15. For more details, please contact us.
Company Van Changes: escaping tax and paying tax on a company van.
Civil partnerships: Same-sex couples have the chance from 5 December 2005 to register a civil partnership. Good news and tax-traps.
Arctic Systems: Tax Faculty calls for clarity: or Settlements or Sec.660. If you have a limited company you must read this.
Tax Credit Errors: The Chartered Institute of Taxation has reminded tax credits claimants that they may be able to keep overpaid credits that the Inland Revenue seeks to recover.
A few notes on the recent budget.
More prosecutions for tax credit fraudsters.
Good news for Adult Placement Carers. A new non-statutory tax relief for those who care in their homes for vulnerable adults.
Tax Cheats: thinking about divorce? Beware, your lawyer may have to turn you in.
Your Mobile Phone: If your employer pays the bill will you get this benefit tax free? Check this out! If you get it wrong you won't benefit. This includes people who control their own company, which in turn employs them. (Something for nothing if you control your own company?)
Innocent businesses to suffer under VAT fraud crackdown.
NIC increase of 1%. How to claw the money back, a joke.
You Can Run, But You Can't Hide! A woman in Perth, Western Australia, received a tax demand from the (UK) Inland Revenue for £1.04. The postage on the envelope amounted to £1.12.
100% capital allowances on your next new car. April 2002.
Get A FREE Pension! Definitely worth a browse. It's not often that you appear to be able to get something for nothing.