Beyond Compliance: Technical & Advisory Insights

Each year HMRC carries out a reconciliation of PAYE collected from each employee with the tax due from him/her. A P800 tax calculation is sent out to the taxpayer if there is an over/under payment of tax. If the underpayment is below £50 (which was temporarily raised to £300) no

[2011] UKFTT 760 (TC) – TC01597 – 24 Nov 2011 Capital Gains Tax, as a matter of law, applies only to a person resident in the UK at least for part of a tax year. Section 2 of the Taxation of Chargeable Gains Act 1992 (TCGA 1992) states: “… a

HMRC has announced extension of an alternative dispute resolution pilot that would allow smaller businesses to resolve tax disputes without having to resort to appealing to the tax tribunal. Aimed at small and medium-sized enterprises the pilot will be initially available only in North Wales and the North West of

The next due date for payment of PAYE/NIC for month 9 or quarter 3 ended 5 January 2012 is Sunday 22 January 2012. HMRC must receive cleared funds in to their account by this date. As HMRC now accept Faster Payment Service it is advisable to use electronic payment methods

Filing a late return invites penalty? Not always. If you have a ‘reasonable’ excuse you may escape the penalty. HMRC website defines a ‘reasonable excuse’ as some unexpected or unusual event beyond your control and gives a few examples: ·a failure in the HMRC computer system ·your computer breaks down

First-tier Tribunal decision – [2011] UKFTT 425 (TC) – TC01278 The taxpayer in his return declared self-employment income from a boat chartering business and claimed capital allowances on the vessel used for the business, and used the resultant losses to offset other income. The question on appeal was whether the

[2011] UKFTT 814 (TC) – TC01650 The facts of the case are as under: Mrs H was the proprietor of a business until 13 March 2010 (tax year 2009-10) employing around 90 employees. She sold the business to Mr W on 13 March 2010 when all the computer records and

The year 2011 saw the First-tier Tribunal severely criticising HMRC for running a ‘cash generating scheme’ by issuing P35 filing penalty notices after waiting for 6 months in September. HOK Ltd v HMRC [2011] UKFTT 433 (TC01286) was one of several cases where the tribunal judge allowed the appeal against

Court of appeal: [2011] EWCA Civ 1566 (Case No: A3/2010/2704) Normally a taxpayer must prepare and deliver a tax return by 31 January following the year of assessment, and pay all the tax due. HMRC may then enquire into the return by issuing a formal notice within twelve months after