Category: Tax

As many as 250,000 people will have to pay income tax rates of more than 60% this year, and thousands more will do so from next April. Anyone earning between £100,000 and £118,880 will have to pay 62% tax on some of their income after the Government’s decision to increase the personal tax allowance to … Continued

Company Directors are the subject of a new HM Revenue & Customs clampdown aimed at ensuring they submit personal tax returns. It forms part of HMRC’s taskforce scheme, which usually operates in “short, sharp bursts of activity” in targeted areas of the country and perceived high-risk industries. HMRC inspectors have started the crackdown in a … Continued

This has always been a major bugbear of the tax rules, as where there is both a business and a personal reason or benefit in meeting an expense, there is no tax relief on any of it. There are a few exceptions; for example, if the expense can be properly split between business and personal … Continued

HMRC have announced 4 new taskforces that will investigate tax evasion in specific commercial and geographical sectors. The taskforces bring together various compliance and enforcement teams for what they term “intensive bursts of targeted activity”. The new taskforces will investigate the following:  Construction industry in London (expecting to raise £3 million)  Security guards, bouncers and … Continued

As mentioned in previous articles, there has been a tightening of the rules regarding the receipt of a loan from a close company. The company can be taxed 25% on the amount of a loan drawn by a shareholder which is still outstanding more than 9 months after the end of the company’s accounting period. … Continued

In autumn 2015, employer-supported childcare will be replaced by a tax-free childcare scheme. However, employees may choose to remain in those schemes or switch to tax-free childcare. The new scheme is designed to help families and the Government will provide 20 per cent of working families’ childcare costs (subject to an annual limit of £1,200 … Continued

HMRC’s consultation on amending the periodic and exit charges on relevant property trusts, which ended last week, has attached some criticism. The key proposal is to split the inheritance tax nil-rate (NRB) between all trusts set up by the settlor, instead of the current system under which each separate trust is entitled to a full … Continued

HMRC is to launch a campaign targeting landlords who are failing to pay the tax due on rents they receive on their properties. The campaign will target all landlords, but will be focussing compliance activity into specific landlord ‘types’, for example, those who own more than one property, specialist landlords who rent to students, people … Continued

The Finance Act 2013 has provided HMRC with a new weapon to combat tax evasion. As of 1st September, HMRC have been legally entitled to have access to merchant acquirer data. They will be able to see information on businesses credit and debit card payments to attempt to reduce fraud. The Revenue suggests that its … Continued

A consultation document has been published on an HMRC attempt to stop what they believe are artificial profit and loss allocation schemes involving members of LLPs (and indeed other partnerships) where some of the members are chargeable to income tax but others are not. What they do not like is allocating to a limited company … Continued