Blogs

The Office of Tax Simplification has submitted an initial report to the Chancellor for 2011 budget recommending changes to areas of complexity and uncertainty in taxation for small businesses. The recommendations include a simplified procedure for small businesses to manage VAT across the EU and aligning the end of the

HMRC charges a late filing penalty when a paper return arrives late. But its case for charging a late filing penalty was dealt a big blow when the First Tier Tribunal upheld the taxpayer’s appeal against a late filing penalty. The case pertains to late filing of a CIS return

Failure to file the PAYE end-of-year forms P35, P14 and P11D (b) with HMRC by the deadlines invites penalties whether you’re filing online or on paper. There are separate penalties for filing on paper when required to file online. P35 and P14s The deadline for filing these returns with HMRC

‘Residence’ as a term for UK tax purposes is not defined by law. Current interpretations are largely based on judicial pronouncements. Normally a person shall be regarded as resident in the UK if s/he is physically present in the country for 183 days or more in a tax year. It

Until the Intermediaries Legislation (IR35) was introduced in 2000 individuals could avoid paying PAYE and Class 1 NIC by providing their services through an intermediary, normally a Personal Service Company (PSC). Typically the PSC would invoice the client for the services provided by the individual and would receive payments from

Tax advisers may rely on the HMRC manuals at their own risk and peril. Here is an interesting case decided by the First-tier Tribunal early this year (Hanover Company Services Ltd Vs HMRC UKFTT 256 – 2010). The tribunal decided that the ‘relevant qualification’ carried in the HMRC manuals provides

The UK Value Added Tax (VAT) standard rate will increase to 20% on 4 January 2011 from the current rate of 17.5%. This rate change does not affect exempt supplies (e.g. financial services), zero-rated supplies (e.g. food and children’s clothing) and reduced 5% rate supplies (domestic fuel and electricity). But

The UK Controlled Foreign Company (CFC) rules exist to prevent multinationals resident in the UK from avoiding UK tax by artificially diverting profits to tax havens and low tax jurisdictions. By definition a controlled foreign company in an accounting period is a company that is resident outside the United Kingdom,controlled

HMRC has announced changes to Class 2 National Insurance contributions (NIC) payment dates. From April 2011 on payments for your Class 2 National Insurance contributions will become due on 31 January and 31 July, the same as a Self Assessment tax bill. Payments could be made by internet, telephone banking,