Category: Tax

What is happening? From 1 January 2015 the VAT rules for cross-border B2C supplies of ‘digital services’ (i.e. broadcasting, telecoms and e-services) will change. From that date, VAT must be accounted for in the member state where the customer normally lives, rather than where the supplier of the service is established. This means that sellers … Continued

The scope of inheritance tax (IHT) is determined by a person’s “domicile”. For those domiciled within the UK their worldwide assets are potentially liable to IHT and for those domiciled outside the UK the charge is restricted to the value of UK assets. Certain statutory provisions deem people who are domiciled outside the UK to … Continued

The Chancellor has announced a series of safeguards to protect innocent people from having their bank accounts raided by HMRC. We understand that tax inspectors will have to give people face-to-face warnings before raiding their bank accounts after well watered down controversial plans to claw back money owed to the Exchequer. The plans to give … Continued

From April 2015, it appears the over 55s will be able to use their pensions “like bank accounts” and withdraw cash to invest or spend as they wish. What are the changes? From April 2015 the rules will change: If a pension saver dies before 75 (whether or not the pension has been touched) the … Continued

HMRC’s latest disclosure campaign is aimed at traders who accept payments by debit and credit cards but who haven’t declared all transactions. The Credit Card Sales campaign provides an opportunity for individuals and companies accepting debit and credit cards (but have not reflected all transactions in their tax return) to bring their affairs up to … Continued

The Social Investment Tax Relief scheme (SITR) introduced this year helps individuals support social enterprises, giving these enterprises access to new sources of finance. The new relief provides the investor with a deduction from their tax liability, equal to 30% of the amount invested. A £10,000 loan to a qualifying social enterprise would therefore allow … Continued

Currently, HM Revenue and Customs can collect tax debts of up to £3,000 by adjusting your Pay As You Earn (PAYE) tax code. HMRC refers to this as ‘coding out’. The effect of this is to recover the debt from your income, by increasing the amount deducted from your income during the tax year. This … Continued

Details of changes to tax rules that will allow over 55s to access their defined contribution pension pots with more flexibility from April 2015, have been published in the Taxation of Pensions Bill. Under current rules, savers can take 25% of their pot as a tax-free lump sum and put the remaining 75% in a … Continued

Many people die intestate because they think their estate will automatically pass to their spouse free of inheritance tax (IHT). This is not necessarily correct. Moreover, having a Will in place makes it easier to get a grant of probate and avoids the Statutory Intestacy Rules governing how the estate is distributed. From 1 October … Continued