Latest News
Employment contract wording holds the key to tax liabilities
A recent case highlighted the situation of an employed taxpayer, who incurred £4,598 for overseas business travel and subsistence expenses and £5,683 for other expenses during the year to 5 April 2008. HMRC decided that she was not e...
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Man describes how HMRC chased him for money he did not owe
Follow the link to hear Danny, a small business owner, describe how he was investigated by HMRC and chased for money he did not owe www.bbc.co.uk/news/uk-16272214 Being investigated by HMRC can be time consuming, expensive and trauma...
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Dont miss the 31 January deadline for completing your tax return online!
It is such a busy time of year, with Christmas around the corner, presents to give and receive and parties to organise and attend, but it is important to remember the mundane things that still need to be organised around the festivities – like your tax return.
As a business owner, ...
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New focus upon tutors and coaches for HMRCs Tax Catch-up Plan
Anyone who provides teaching or coaching services without paying any tax on the money that they earn is being given the opportunity to inform HMRC of their situation to avoid potential penalties and criminal prosecution. Tutors and coaches are the latest in a long line of professionals who are being...
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Dentists - find out how you could avoid paying income tax for 10 years!
If you are a dentist, did you know that by incorporating your dental practice, you may be able to completely avoid paying dentists’ income tax for 10 years?
Saving money and protecting your assets could be easier than you think if your practice was registered as a Limited Liability ...
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£15,480 tax free for students!
If you have a child about to go to College or University, the cost is a major consideration. Under “employee scholarships”, they could receive up to £15,480 per annum tax free.
There is a specific exemption for “employee scholarships”, under which up to...
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How to avoid an investigation from HMRC
Tax investigations can be emotionally and financially draining, not to mention the time taken out of your working day to provide further information or answers to questions that the Tax Inspector might ask you. Anyone can be investigated by HMRC and whilst it is possible that you have been selected...
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HMRC to increase monitoring of online traders
Improved surveillance software is to be used by the tax authorities to find people trading on marketplace websites who are not paying tax. In recent years, HMRC have been increasing efforts to encourage doctors, dentists, plumbers and restaurateurs to pay the right amount of tax. Further discl...
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Employees have to work 3 extra days to pay their taxes
Tax Freedom Day, the point at which UK employees stop working to pay taxes and begin to take home their wages, has been delayed by 3 days during 2011, according to research by the Adam Smith Institute. For the first 5 months of 2011, UK employees have worked just to pay their taxes, with every ...
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Woman jailed for fraudulently claiming tax credits
A mother, who claimed tax credits for her children and husband after falsely stating that they were severely disabled, was jailed for 2 years as a result of an investigation by the HMRC. She began claiming tax credits in 2003, after stating that 1 of her 4 children was severely disabled. She s...
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Unclaimed tax refunds cost Brits billions
UK investors are failing to claim up to £1.1bn each year in foreign dividend withholding tax (DWT). In situations where the UK has a double taxation agreement with the country in question, investors can claim back the difference between the usual rate and the reduced rate specified in the rel...
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A recent case demonstrates the need for clear description of purpose
The taxpaying company was a registered social landlord, which was run on a not-for-profit basis to let and manage rented housing for the benefit of the community. The taxpayer appealed against assessments to corporation tax, saying that it was a charity and therefore not liable for corporation tax ...
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Uncompassionate HMRC overruled
A self-employed stunt performer had an urgent, private operation to enable him to continue working and claimed that the medical expenses were tax deductible. HMRC appealed against this, saying that they were not a business expense.
The performer carries out stunts in film and television ...
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Mental health problems can be a reasonable excuse for the late filing of tax documents
The Upper Tribunal decided that a taxpayer had a reasonable excuse for the late filing of her self-assessment returns and unpaid tax for 2006-7 and 2007-8, due to mental health problems resulting from a robbery in 2003. Her bank cards were taken and the contents of her bank accounts were completely...
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Pressured into a Settlement?
The present state of the country's finances has pressured the government to reclaim as much cash as they can. For taxpayers in the middle of an enquiry, this may mean that HMRC go for a quick win: settle early and get the money in.
For taxpayers who have been dealing with an enquiry...
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New deadlines for reclaiming tax approaching fast
New deadlines for reclaiming tax came into effect on 31 March 2010, with the time limits for claiming tax back reduced from six to four years. After 5 April 2010 individuals will not be allowed to claim allowances for the 2005-06 tax year or before. Many people who are currently facing an enqu...
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Guilty until proven innocent
A recent tax case¹ has reinforced the fact that the taxpayer is guilty unless he proves himself innocent. This is one of the few areas of British Justice that operates on this basis. In this case, the taxpayer had purchased a take-away fish and chip shop in 2001 and sold it in 2006. He has...
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Construction businesses face threat to Gross Payment Status
A significant number of businesses in the construction industry face losing their Gross Payment status as a result of deferring tax payments, despite often having discussed the issue with HM Revenue & Customs in advance. Late payments agreed in advance with the Revenue’s Business Paym...
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Medical Professionals next target for HMRC
HM Revenue & Customs are offering an “amnesty” to medical healthcare professionals with undisclosed tax liabilities to make a full declaration in exchange for a reduced penalty. Since being granted sweeping new powers to obtain individuals’ personal data from a vast number...
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Tax Champion stops HMRC "fishing"
Tax Champion, a newly formed tax advisory service based in Sheffield, has won its first Tax Tribunal case against HM Revenue & Customs. Many tax payers who find themselves under the Revenues microscope simply want to pay the right amount of tax and stop the constant stream of qu...
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VAT and Vehicles
New motor cars Input tax cannot be reclaimed on the purchase of a new motor car that is available for private use. The only exception is if the vehicle is the actual tool of trading e.g. for a car hire business, taxi firm or driving school....
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