T.A.N.K articles on The Tax Advice Network

Newsletter 4 March 2010

This weeks' practical, commercial and timely points starts with a list of useful phone numbers that has just been published. We also report on the practical issues arising from two recent tribunal cases. They both contain timely reminders about the expensive consequences of not paying employer's NIC. Finally we have news about a number of defective communications from HMRC.

After the practical points below I have put the Spotlight on one of our tax adviser members, provided another 'Did you know...?' thought and included a new item for the tax fun spot.

Tax Newsletter 25 Feb

HMRC are trying to improve communications and to resolve disputes more easily with taxpayers and agents. You may laugh, but it's true. The HMRC internal review is part of that dispute resolution process, so this week we take a look at how it is working in practice.

We also supply some explanations for some of those PAYE code errors, and highlight the innovations and faults in the latest agent update bulletin from HMRC.

Tax Newsletter 18 Feb

HMRC have begun to notify businesses that they must file their VAT returns online. However there are a few problems at the agent's end of the system, as we explain below in this week's practical and topical tax newsletter.

Additionally although the FA 2008 rules for taxing non-domiciled UK residents are still fresh, HMRC's guidance has been quietly changed this month. You need to understand the new guidance to provide accurate year-end planning advice. And we also remind you about the company accounts filing deadline that slipped in this year.

Tax Newsletter 11 Feb

In this week's practical and topical tax newsletter we summarise the unique and important tax deadlines that are bunching at the end of this tax year, to give you and your clients enough time to take action if necessary. We also have some further news about the 2010/11 PAYE code fiasco, a tip to avoid HMRC stretching your patience and advice re delays to the process for registering as an agent with HMRC.

MPs Expenses - what lessons can we learn?

Many people, myself included, were taken by surprise at the degree of adverse publicity created by last year’s MPs' expenses probe, especially given the fact that most of the rules have been in the public domain for some years. This article aims to put this furore into context for the average employer, and provides some general guidance for anyone thinking of writing or updating an expenses policy document.

Tax Newsletter 4th Feb

Today's newsletter contains a cautionary and timely tale about the VAT flat rate scheme as it affacted an accountant in practice, and some further timely advice for your clients who let furnished holiday accommodation. We also have good news about HMRC's new approach to applications for P11D dispensations.

Tax Newsletter 28 Jan

Those accountants with personal tax, sole trader and partnership clients are almost at the finishing line. Good luck!

This week we have details of where you can send partnership SA tax returns with missing UTR numbers, which prevents them from being filed online. We also explain why your clients might receive multiple 2010/11 PAYE codes, and a new feature on the form P46 designed to help ex-students.

Tax Newsletter 21 Jan

For many accountants the idea of a new client asking for help over the next few days is a nightmare. This isn't true across the board and even where it's an unwelcome intrusion you may want to do what you can. Our practical points this week consider what you can do when Mr Nu-Client walks into your practice wanting to get his tax affairs straight. We have advice on how to deal with such last minute clients, and an update on who is eligible to use the tax disclosure opportunity for medics.

Minor to majority

A trust established in 1994 in favour of the settlor's minor unmarried son appears to have both possible beneficiaries and immediate beneficiaries. Is this a bare trust and is there an immediate income entitlement ? It may be possible to transfer rolled-up income without further tax charge.

(Taxation Magazine, 7th January 2010 : Readers' Forum Query T17,524)

Tax Newsletter 14 Jan

The snow has turned the landscape into negative relief, and occasionally the tax system reflects this with an upside-down logic that is difficult to follow. This week there are two examples to warn your clients about; an attack on the honesty of the most trusted profession and the calculation of VAT turnover thresholds. We also have a timely reminder about amending tax returns.

HMRC are after Medical Professionals now

HMRC Announces their first “different” Disclosure Facility– The Tax Health Plan (THP). On 11th January 2010 HMRC launched another disclosure facility that Bill Stevenson and the other tax enquiry specialists can help you get right first time.

Tax Newsletter 7 Jan

Significant tax savings can often be achieved if a transaction is planned well in advance, so discussing your clients' plans to dispose of property or shares is a good idea. This week we have some tips to help with such basic tax planning, and news of HMRC's changing attitude to travel to work schemes. We also have a seasonal reminder about winter fuel claims.

Father's Trust

A father is subject to tax on the income of a bare trust established for his children. If he does not recover this tax payment from the trustees, has he in effect made a potentially exempt transfer in favour of the children ?

(Taxation magazine : Readers' Forum : Query T17,520)

Newsletter 17 December 2009

This newsletter always focuses on timely, practical and commercial tax issues. So last week I said there was no need for reference to anything in the Pre Budget Report (PBR).

Well, on reflection there are two issues arising from the PBR that may have an immediate affect on your clients, specifically those who let property as furnished holiday accommodation and businesses that use the VAT flat rate scheme. We also have news about HMRC compliance reviews that could affect your practice.

Avoiding Negligence Claims Masterclass

Totally Reserved

A discretionary trust used money that had been gifted to it to purchase a 20% share in a property. The other 80% share is owned by the settlor who uses the property as his only or main residence. Was there a reservation of benefit ?
Readers' Forum: Taxation Magazine: 10th December 2009

Tax Newsletter 19 Nov

Our practical points this week all relate to items about which it is fair to say we are having a little moan, but forewarned is forearmed. There are problems with the HMRC computer systems for Corporation Tax, VAT, SA, and PAYE. We are also not impressed by the late announcement of mileage rates for the users of company cars. After the practical points in this newsletter I have again put the Spotlight on one of our tax adviser members and offered another item for the tax fun spot.

Tax Newsletter 12 Nov

We have practical tips this week on two tax issues that can easily be overlooked when completing personal tax returns: capital gains and losses on foreign currency accounts, and allowances for new pensioners. We also have a timely warning about the Taxman's powers to inspect business premises.

Tax Newsletter 05 Nov

As you plough through the pile of tax returns and accounts mounting up for the January submission deadline, this week's practical tax newsletter contains a reminder about which expenses you should disallow for tax purposes. We also have some new information on the HMRC approach to tax debt, and an update on online filing issues.

Tax Newsletter 29 Oct 09

This week is half term for many people (well their children really) but there's nothing half baked about the practical tax tips we're sharing with readers. Firstly we refresh our memories about the tax implications of two situations, which may become more common as this recession drags on: winding up a company and letting rooms to lodgers. We also offer a stark reminder of why you and your clients should not rely on verbal tax advice from HMRC 'helplines'.

Tax Newsletter 22 Oct 09

This week's national postal strike could delay a large number of VAT returns and the personal tax returns due in by 31 October 2009. We have advice on how to avoid penalties for late filing of these returns. We also have tips on achieving some benefits from the changeover of the standard VAT rate effective from 1 January 2010, and we provide an update on changes to entitlement for state benefits from 2 November 2009.

Tax Newsletter 15 Oct 09

This week we report some practical points gleaned from the Learning Together seminar with HMRC on the new compliance checks and penalties. We also take a brief look at taxation of Tips and Troncs as the law has recently changed in this area.

Tax Newsletter 08 Oct 09

You may have submitted a number of loss claims in the past months, but have those claims been correctly processed by HMRC? This week we explain what can go wrong with a loss claim on the HMRC side of the fence. We also have practical advice on how to deal with debts that go bad after the end of the accounting period, and news about a HMRC tool to manage PAYE codes.

Tax Newsletter 01 Oct 09

Are you and your clients going to be ready for compulsory online filing of VAT and PAYE returns? You need to be addressing this now if you want to avoid problems when it becomes compulsory next year. We have news of developments as regards both VAT and PAYE online filing. And our third practical point relates to changing clients' address details online.

Tax Newsletter 24 Sept 09

Remember, remember the 5th of October (not November!) Individuals who are not within self-assessment must notify HMRC of their new sources of income and gains for 2008/09 by this date. We have news on a new way to do this, further details on PAYE coding problems and a reminder about the new Companies House forms.

Tax Newsletter 17 Sept 09

Autumn has arrived and so you may be gearing up for the intensive stage of the 2008/09 tax return season. We have some practical points for you to look out for on PAYE codes, interest included in compensation claims, and news on increased interest rates due on unpaid taxes.

Tax Newsletter 10 Sept 09

Tax advisers and accountants play a vital role in keeping the tax system flowing smoothly, but inevitably there will be some difficulties at the boundaries. This week we look at some of the gritty problems that occur when dealing with HMRC, and how to prevent those irritations from raising your blood pressure.

Tax Newsletter 2 Sept 09

On your return from holiday your home or office can seem like a different place. Something has changed, but you don't know what, could it be the tax law and practice? This week we have some tips on how to keep up to date with tax changes, and some warnings from VAT cases on what happens when you don't.

Tax Newsletter 27 August 2009

'Its never too late to fall in love to start exercising or to change your life'. Perhaps so, but it can be too late to make tax claim. This week we have some tips on how you can persuade HMRC to accept a late claim, whether an R&D tax credit claim should be considered, and how you can help individuals previously only assessed under PAYE.

Tax newsletter 20 August 2009

This week our practical tax newsletter contains a security theme. We have news and advice concerning IT tax fraud that is affecting some accountants, HMRC's reference checkers and a change to HMRC's process for registering newly self employed clients (due, we are told, to recent fraudulent activity.

Tax Newsletter 13 August 2009

Icebergs are rare this far south, but in this week's practical tax newsletter we expose two metaphysical tax- icebergs, and show you how to steer your clients around them. We also have more information about the new disclosure opportunity to be launched next month by HMRC.

Tax Newsletter 07 August 2009

July tends to be the peak of the tax rebate season, and this month has also seen a surge in tax rebate scams. This week's newsletter explains how you can protect your clients against such scams, a warning about unreported property income and news on the 2009 Employer CD-ROM. There's also news about the New Disclosure Opportunity for 'naughty clients'.

Tax newsletter 30 July 2009

We may be in the dog-days of summer, but tax returns and payrolls still need to be processed. We have practical tips relevant to both those areas this week, plus advice concerning the new disclosure opportunity for those with undeclared off-shore earnings.

Tax newsletter 23 July 2009

Following on from last week's tips about paying tax due on 31 July, this week we have some further practical tips about spreading tax payments, a reminder about recent VAT changes and news of confusion about the completion of trust tax returns.

Tax newsletter 16 July 2009

The summer holidays are now starting for most English and Welsh schools, so many of your clients may be away over the crucial tax payment date of 31 July. This week's newsletter includes some timely and practical tips about how to pay the tax due, or claim a repayment, and we explain some work-arounds for more online filing problems.

Tax newsletter 9 July 2009

Once again this week's practical tax newsletter highlights and advises you on three topical items: HMRC has imposed a deadline of 31 July 2009 for taxpayers to claim tax relief for overseas furnished holiday lettings for earlier tax years. We examine what is required to make a valid claim for this tax relief, and for other tax elections. We also have some advice concerning a change to tax reliefs for pension contributions.

Tax newsletter 2 July 2009

In last week's practical tax newsletter we briefly covered the meaning of the phrase 'check a return' when used by HMRC officers. This week we examine the law and guidance that governs when HMRC can open an enquiry into your clients' tax affairs. We have also highlighted some of the continuing problems with online filing for SA returns.

Tax Newsletter 25 June 2009

As we slip into summer you may be looking forward to your two weeks away, but there are some important deadlines in July which your clients need to know about: reporting of employment related shares and options, and Tax Credits renewals. We also take a brief look at what HMRC mean by 'check a return'.

Tax newsletter 18 June 2009

Last week in our members' only tax newsletter we had some practical advice about obtaining tax refunds for businesses that need to carry back their losses. We also had news of potential PAYE problems, and a trap you need to be aware of when doing some very basic IHT planning.

Another chance to make an offshore disclosure

There will inevitably have been a number of clients who did not take part in the last Offshore Disclosure Amnesty .....

A flat rate of 10% again for new first time disclosers and an online filing facility for agents - all good news

Tax Newsletter 4 June 2009

Be prepared" is the motto of the international scouting movement, but it's a good maximum for business too. Last week our practical points included two tax administration changes which you need to prepare your clients for. We also highlighted a little-known but useful election for overseas capital losses.

Tax Newsletter 28 May 2009

Last week we offered topical and practical guidance concerning three different ways you might want to communicate with HMRC: tips re online filing, dangerous helplines and the non-statutory clearance service. Each method has its own pitfalls, but these communication channels can work well if you know what precautions to take and you know what you're doing.

Tax Newsletter 21 May 2009

Some of your clients may be tempted by the discount available under the new car and van scrappage scheme, so this week we explore the tax implications of replacing a company vehicle. Less fortunate businesses may be considering redundancies, and need to know the latest HMRC position on tax free redundancy payments. We also have a reminder about capital losses.

Tax Newsletter 14 May 2009

It may be Christian Aid week, as designated by that charity, but here at the Tax Advice Network it's client education week. The key topics you may wish to raise with your clients are: reporting expenses on the form P11D, Tax Credit claims, and why you need to be confident that your clients take 'reasonable care' in attending to their tax affairs.

Tax Newsletter 7 May 2009

For those of you who did not spend the bank holiday weekend reading the 2009 Finance Bill, this week’s newsletter contains a key explanation of two aspects of the new law that are already in force. There is also some topical and practical news from the IHT and trusts office of HMRC.

Tax Newsletter 30 April 2009

The Budget has thrown up three areas where you may need to take action NOW on behalf of your clients. In this week’s practical newsletter we explain what needs to be done for those clients who hold (or used to hold) land outside the UK but within the EU, those who operate furnished holiday lettings, and those with taxable income exceeding £100,000.

Tax Newsletter 23 April 2009

This is NOT a Budget summary. It’s our usual weekly practical tax newsletter with 3 key practical tips and links for accountants in practice. This newsletter was complied before this week’s Budget, so we are examining issues which we believe will not be affected by Budget announcements: VAT on bad debts and corporation tax for companies in administration or liquidation. We also have some news about submitting P11D forms.

Tax Newsletter 16 April 2009

The 2008/09 self-assessment tax return season has begun, and problems are already emerging with the new SA forms. In this week's practical tax newsletter we highlight these and provide loads of useful links. We also have some new information for your clients concerning shareholdings in the failed banks, repayment claims and claims for receiving bank interest paid gross.

Tax Newsletter 9 April 2009

There have been a huge number of announcements on the HMRC website in the last ten days; anyone would think we’d had a Budget (we haven’t)! This week we explain the practical effect of some of the key tax changes that came into force on 1 and 6 April.

Tax newsletter 2 April 2009

1 April has brought in a whole raft of changes to the tax administration system, so we are briefing you on some of the practical aspects this week. We have also provided advice related to the problems caused by HMRC’s errors in PAYE documents and regulations.

Tax Newsletter 26 March 2009

All taxpayers must now be sure to take ‘reasonable care’ with their tax affairs or risk a new style penalty when in dispute with HMRC. Where the tax law is unclear you need to rely on HMRC guidance, but this can be equally difficult to follow as we highlight in our three practical points this week.

Tax Newsletter 19 March 2009

This week our 3 practical points include an opportunity to secure tax refunds that you might otherwise overlook.

VAT is apparently a simple tax, but the interpretation of the rules keeps changing. Two examples involve the flat rate VAT scheme and entertaining for overseas customers, which could both affect your clients. You also need to be aware of changes in the reporting of car benefits that are due to apply from 6 April 2009.

Tax Newsletter 12 March 2009

This week's practical tax points are all related to 31 March which is of course a common accounting year end for companies, and 1 April is the corporation tax payment deadline for June year ends . In both cases you may need to take action to help your clients cope with losses and cash flow difficulties. An important VAT repayment deadline also falls on 31 March 2009, which would be a shame to miss.

Tax Newsletter 5 March 09

Penalties are our main focus this week, as HMRC have issued a number of incorrect penalties in respect of the 2009/08 tax returns. We also take a quick look at the new tax-help tools launched by HMRC. Will they really help?

In addition to those practical points, at the end of this newsletter I have, as usual, provided an item for the 'Tax fun' spot and spotlighted one of the members of the Tax Advice Network.

Tax Newsletter 26 February 2009

This week's practical tax points all concern preparations for changes coming in during April 2009. 1 April 2009 sees the start of the new HMRC penalty regime, the new HMRC compliance checks, and the new tax tribunal system. On 6 April 2009 there are new regulations that affect low waged employees and disabled drivers of company cars.

Tax Newsletter 19 February 2009

In this week's practical tax update we revisit the topic of employment status as a recently released decision illustrates the best way to handle a challenge by HMRC. On a different theme we explain HMRC's new procedures related to UTRs for partners and partnerships; and our third item provides news on beneficial loans, which will be relevant to family companies.

Tax Newsletter 12 February 2009

In this week's practical tax update you'll find advice for your clients who have received their PAYE codes for 2009/10 in the last week or so. Make sure these codes are checked, as many contain wild estimates of other income. We also introduce you to the new NIC Upper Accruals Point and the new form P45, with which you need to be familiar before 6 April.

Tax Newsletter 5 February 2009

Now the SA returns are done this week's practical tax newsletter contains guidance on how to appeal against the penalties HMRC's computer will be automatically issuing for apparent late filing, and guidance concerning HMRC enquiries. You will also be aware that Companies House has also increased its late filing penalties from 1 February 2009.

Tax Newsletter 29 January 2009

As 31 January approaches the HMRC's online SA return system is showing signs of strain. We have summary of the pinch points, and the work-arounds you need to know. Also a quick reminder to pay special attention to those December 2008 VAT returns.

Tax Newsletter 22 January 2009

This weeks' practical tax newsletter contains a quick reminder of some deadlines that fall on 31 January 2009, and which could be over-looked. We start though with a note about the latest problems with the Revenue's IT systems affecting certain pensioners and taxpayers who want tax liabilities coded out in 2009/10.

Tax Newsletter 15 January 2009

HMRC seems intent on messing-up their systems that deal with tax payments just at this crucial time, so read on for the latest information you need to know to ensure your clients' tax payments are correct and on time. You should also be aware of Student Loan repayments due on 31 January by former students who are now self-employed. I have also included a link to last week's newsletter in case you missed the practical advice therein about clients who need time to pay their tax bills.

Tax Newsletter 8 January 2009

Happy New Year. January can be a crazy month for many accountants in practice.

In addition to SA tax returns for the same old clients, new clients also demand attention and some clients suddenly find they have no funds to meet their tax bills. In this week's practical tax newsletter we have tips for dealing with aspects of both these problems, including new HMRC procedures. In addition to those practical points, at the end of this newsletter I have, as usual, highlighted the newer commentaries added to our TaxBuzz blog and provided an item for our 'Tax fun' spot.

Tax Newsletter 18 December 2008

During the recession clients may be tempted to cut payroll costs by engaging former employees as self-employed contractors. This is risky but can be tax efficient if done correctly. We have news on HMRC guidance and case law in this area, and a round up the latest tips for successful online and planning for tax payments. In addition to those practical points, at the end of this newsletter I have, as usual, highlighted the newer commentaries added to our TaxBuzz blog and provided an item for our 'Tax fun' spot. I've also included links to the facility to access notes and slides from my recent seminar on Mastering the Credit Crunch; and one of the software programmes I mentioned during that and other seminars.

Tax Newsletter 11 December 2008

Its all very last minute at this time of year, so this week we have some tips for dealing with new clients who have just realised they need to complete a tax return, and a warning about dividend tax planning for family companies. In addition to those practical points, at the end of this newsletter I have, as usual, highlighted the newer commentaries added to our TaxBuzz blog and provided an item for our 'Tax fun' spot. I've also included links to the facility to access notes and slides from my recent seminar on Mastering the Credit Crunch; and one of the software programmes I mentioned during that and other seminars.

Tax Newsletter 4 December 2008

This week's practical newsletter covers some little known news and practical points in the areas of motoring costs for employees and the self-employed, HMRC's most recent computer foul-ups and the related matter of incorrect penalties for late P11D(b) forms. In addition to those practical points, at the end of this newsletter I have, as usual, highlighted the newer commentaries added to our TaxBuzz blog and provided an item for our 'Tax fun' spot. I've also included links to the facility to access notes and slides from my recent seminar on Mastering the Credit Crunch; and one of the software programmes I mentioned during that and other seminars.

Tax Newsletter 27 November 2008

Even though you may be fed up with all the comments this week after the Pre Budget Report we have highlighted below three areas in which your clients need your advice now: Implications of the VAT change, Trading losses and Tax debts. In addition to those practical points, at the end of this newsletter I have, as usual, highlighted the newer commentaries added to our TaxBuzz blog and provided an item for our 'Tax fun’ spot.

VAT rate reduction - basic rules

This is a precis of Chapter 30 of VAT Notice 700.

The basic rule is that you can take the benefit of a VAT rate reduction even if you have created a prior tax point but note the exceptions.

Tax Newsletter 20 November 2008

Clients need to know how to take advantage of all available tax allowances and reliefs in the current downturn and where they may be tripped up in future. This week we illustrate some traps in the new system of capital allowances, and how entrepreneurs’ relief can be used against gains on homes. In addition to this week’s practical points, at the end of this newsletter I have, as usual, highlighted the newer commentaries added to our TaxBuzz blog, provided a spotlight feature on one of our Tax Adviser members and provided an item for our ‘Tax fun’ spot.

Tax Newsletter 14 November 2008

This week our practical newsletter highlights some of the many tax issues that you will want to ensure you have discussed with clients who could be suffering in the current economic climate. In addition to this weeks' practical points, at the end of this newsletter I have, as usual, highlighted the newer commentaries added to our TaxBuzz blog, provided a spotlight feature on one of our Tax Adviser members and provided an item for our usual ‘Tax fun’ spot.

Tax Newsletter 6 November 2008

Change is the word that defines our times; from the turmoil in the financial markets, to the election of Barack Obama and on the tax side the new tax rules for capital allowances, CGT, IHT and non-domiciled UK residents. This week our three practical and timely tips address three related areas: Selling shares, Gifts for IHT purposes and Transfers to pension funds.

Tax Newsletter 30 October 2008

To get into the spirit of Halloween in this week’s newsletter we are looking at the death tax: IHT, sick pay for those who just feel like death and we also highlight some good news for builders. In addition to this weeks' three practical points, at the end of this newsletter I have, as usual, highlighted the newer commentaries added to the Tax Advice Network TaxBuzz blog, provided a spotlight feature on one of our Tax Adviser members and our usual ‘Tax fun’ spot.

Watch out for Clients with Liechtenstein accounts

Bill Stevenson says that the UK's tax authority has confirmed that it has paid an informant for data regarding British citizens who have accounts in tax haven Liechtenstein.

In the wake of the SPC actions for UK Offshore Banks HMRC have now gone to subterfuge to penetrate the secrecy of the Liechtenstein banking system

Tax Newsletter 23 October 2008

In this week's newsletter we have practical points about filing paper tax returns and the implication of the submission date for the enquiry window. We also take a hard look at property losses, how they are calculated and how they can be used.

Tax Newsletter 16 October 2008

Sadly redundancy is now a possibility for employees in many sectors, so this week we look at the implications of redundancy for both employees and directors in our items headed ‘Letting staff go’ and ‘Directors and redundancy payments’.

We also summarise some more practical tips for successful e-filing of tax returns.

Tax Newsletter 9 October 2008

The financial news seems to get worse each day, so what can you do to help your clients and your own practice? This week’s practical tips reflect these troubled times, but we don’t have all the answers, - just the tax answers!

Tips for surviving the credit crunch
Protecting the corporation tax fund
Reasonable excuse for late tax returns

New Income Tax Regime in Jersey

www.mekad.com/Maked_Presentation/ZEROTE1.pdf

Tax newsletter 2 October 2008

This week in our newsletter for accountants in general practice we provide some topical and practical advice concerning losses and tax repayments, as these are intimately connected. We also have a brief update on the company law changes for small companies that have just come into force.

At the end of this newsletter I have highlighted the newer commentaries added to the Tax Advice Network blog. There’s also a spotlight feature on one of our Tax Adviser members and our usual ‘Tax fun’ spot.

Tax newsletter 25 Sept 2008

Trading is looking grim for many businesses right now, so this week we take a look at losses and what you can do for those clients who are likely to make a loss in the current year. The newsletter covers income losses, capital losses and VAT deregistration.

Tax newsletter 18 Sept 2008

What a week that was in the financial markets! The fall-out will certainly be wide and deep, so this week we look at three tax issues loosely related to the credit crunch: VAT for builders, Transferable tax debts especially in the context of contractors, and finally the serious issue of Red or white diesel (Red being used by off road vehicles).

Also in this issue, a reminder to complete our first user feedback survey, a note of recent items on our blog and as usual a short ‘tax fun’ piece.

Tax newsletter 10 Sept 2008

This week in our newsletter for accountants in general practice we provide updates on three issues we have covered previously, but where we now have fresh information from HMRC: The Service Company question on tax returns, transfers of the IHT nil rate band and VAT office address.

Tax newsletter 4 Sept 2008

The summer holidays are over for most of us, but there are two items of news this week that have a holiday theme: overseas holiday homes purchased through a company and the new stamp duty ‘holiday’. We also want to draw your attention to the joint professional bodies' new guidance on tax engagement letters - propduced by a working party of which I was the Chairman.

Tax newsletter 28 August 2008

As the summer holiday period draws to a close so the tax return season moves into full swing. This week our three practical tax issues address the new self assessment filing deadline, a reminder of some changes to the self employed pages of the returns, PAYE Settlement agreements and the mid October deadline and finally, another 31 October deadline – this time the one for advance clearance re Business Property Relief claims.

Tax newsletter 21 August 2008

Despite summer holidays the tax season is starting to hot up. This week our three practical tax issues include: how to secure more tax relief for energy saving products; securing tax relief for building alterations and other costs incurred complying with disability laws; and a topic that caused some alarm in the press this summer – staff canteen cards.

Tax newsletter 14 August 2008

In our weekly tax update, as usual, we offer 3 practical points that will be of particular interest to accountants in general practice. This week we focus on some practical VAT issues: when a VAT return is actually due, what VAT you can recover when you start a new business or company, and a change in HMRC practice concerning VAT errors.

Tax newsletter 8 August 2008

The 2008 Finance Act is now law and has brought in changes to the tax rules starting from various dates ranging from 12 March to 1 August 2008. In this week's newsletter we highlight three areas now affected and which may impact the advice you are currently giving your clients:

Record keeping by owner-managed companies
Associated Companies
Research and Development tax credits

Tax newsletter 31 July 2008

This week's practical tax update again contains 3 further issues relevant to accountants in practice. Today we focus on the issues relevant to 2007/08 tax returns by reference to the fundamental changes to capital gains tax which took efect from 6 April 2008. You need to consider the implications of the new regime when completing deferral claims in your clients’ 2007/08 tax returns. There is a new election to consider where shares have been exchanged and there are last year's CGT changes for partnerships too.

Tax newsletter 23 July 2008

This week's practical tax focused newsletter includes updates to the problems with filing tax returns online we reported in our newsletter on 17 July. Also advice for payroll managers on how to deal with the change in personal allowances, and a word of warning about the HMRC website.

Tax newsletter 17 July 2008

The summer holidays are almost here, so you may be winding down for a few weeks. But we're still here offering 3 practical tax update notes week in and week out - as well as providing tax back up and support as and when you need a helping hand.

This week we've some practical advice about warning your clients about the deadline for renewing Tax Credit claims, various practical issues concerning the 2007/08 tax returns and the facility to make negligible values generally and especially re Northern Rock shares.

Tax newsletter 10 July 2008

Welcome to this week's practical tax update. The rising price of fuel is putting employers under pressure to pay higher mileage allowances, but this can result in tax and NI liabilities, which we discuss below. We also report on further developments with the service company question, and tax repayments generated by this year's tax returns.

Why I gave up giving tax advice

Top tax man reveals frustrations with the tax system as main reason he no longer gives tax advice.

This relates to Mark Lee's revelations in a leading Comment piece in today's Taxtion magazine. In effect they explain one of the key catalysts for the creation of the Tax Advice Network.

Tax newsletter 3 July 2008

Although the 2008 Finance Bill is still working its way through Parliament, some parts of the law are already in force and apply to current buying and selling decisions.

In this weeks practical tax update we update you on the latest position and remind you about the importance of the HMRC's List 3 for completing forms P11Ds.

Annual Investment Allowance
Entrepreneurs' relief on single assets
Updated List 3 re subscriptions

Tax newsletter 26 June 2008

This week's practical tax update again contains 3 further issues relevant to accountants in practice. The P11D deadline is nearly upon us, so we are looking at the tricky topic of company credit and charge cards. We also advise you about the new enquiry window and HMRC's efforts to help accountants and tax advisers.

In addition there are two new items on our Tax blog.

Tax newsletter 19 June 2008

Three more practical tips this week for accountants in general practice:

CIS - new regulation for compliance test
Letting agents and the non-resident landlords scheme
Overseas bank accounts and withholding tax

Tax newsletter 12 June 2008

Some General Practitioners confess they do not 'do VAT'. Most though know enough to deal with day to day issues and then refer more complex issues to a VAT specialist (and you have a choice of specialists at Tax Advice Network). After 36 years VAT now affects almost every business transaction.

This week we highlight two areas where the VAT rules are changing and a shift in HMRC policy over CIS data.

VAT option to tax - revised rules
VAT on agency staff
CIS information no longer provided

Tax newsletter 5 June 2008

Last week's attempt to theme our three topical practical tax issues was spurious to say the least. This week we admit - it's a mixed bag!

Advisory fuel rates from 1 June
Small pensions
Tax return glitches

Tax newsletter 22 May 2008

Phew! The PAYE end of year returns are just about done, but the PAYE season is not over yet as the forms P11D must be submitted by 6 July. This week we look at three PAYE related issues, which could make your life easier:

P11D dispensations
Changes to form P46 procedures
PAYE enquiries

Tax newsletter 15 May 2008

Opps he did it again! The Chancellor's announcement on Tuesday 13 May to attempt to fix the 10% tax crisis is his third u-turn since the Pre Budget report on 9October 2007. We look at the practical implications for your clients and two key need-to-know facts in the VAT area.

Changes to 2008/09 income tax
Written opinions from the VAT office
VAT office address - it's changing!

Tax newsletter 8 May 2008

With the price of petrol heading ever skywards, the tax efficiency of the company vehicles must be examined. This week we concentrate on the tax changes that are affecting company and business vehicles that are already here, and those changes that are in the pipeline for 2009.

Capital allowances for cars
Car or van
VAT and fuel

Tax newsletter 1 May 2008

Land and buildings don't move and their ownership is relatively easy to verify, so real property tends to attract a wide variety of taxes. This week our topical, commercial and practical focus is on three new or changing property tax issues:

Tax return property pages
Integral features
Empty properties

Tax newsletter 24 April 2008

This week we focus on how and when you and your clients need to register with HMRC, and provide an update on the guidance for service company questions on the P35 and 2007/08 tax return.

Registering as self-employed
Registering under money laundering regulations
The service company questions

Tax newsletter 17 April 2008

This week our 3 practical tax tips relate to issues arising from the April edition of the HMRC Employer Bulletin.

Getting answers by email
National insurance numbers
Working from home expenses

As usual, there's a tax fun(!) item towards the end of this newsletter. And a note about a couple of changes you might notice to the website.

Take advantage of the 18 per cent CGT rate

Capital gains @ 18% or Trading Income @ 40%? Loss relief @ 40% or at worst carried forward @ 18%. The choice is yours but you need to plan and consider it carefully now that we are in the realms of such a differential between trading income tax rates and CGT rates.

This article by Bill Stevenson seeks to highlight the opportunities that might be available now that we are into the promised land of 18% on Capital gains from 6th April 2008.

Tax newsletter 10 April 2008

The tax world has long been fast moving and never more so than at the present. In this week's newsletter you can find out more about some of the issues we touched on last week:

2008/09 Tax Return - new stuff
Service companies and the SA Tax Return
Deadlines and penalties you need to know about now

How to avoid another January of hell

In this article - available as a free download from our website - Mark Lee, offers some invaluable advice, tips and home truths that will enable you to avoid another January of hell.

Tax newsletter 3 April 2008

Welcome to our new subscribers - there are now more than 700 of you! As always our weekly newsletter focuses on three tax items of topical and practical relevance to accountants in general practice. As we approach 5 April we have selected three issues relevant to the start of the new tax year:

Form P35 and 'service companies'
Avoiding the need for repayment claims
Changes to self assessment tax returns (some of them anyway!)

Tax newsletter 27 March 2008

This week's newsletter focuses on three tax changes relevant to small businesses that were announced in the Budget but which have largely been overlooked by the main Budget coverage.

Stock taken for own use
Loss relief for sole-traders
Associated company rules

No It's Not April Fool - As you know it

HMRC picked the 1st April to release its guidance and forewarning of the new penalties system and this article by Bill Stevenson briefly outlines the main points.

Tax newsletter 20 March 2008

Many of the new tax rules which are due to apply from 6 April 2008 are far from clear. We hope the 2008 Finance Bill, to be published on 27 March, will provide some of the clarity that was missing from the 107(!) Budget Notes. In the meantime we analyse changes in three areas that are likely to affect your clients.

Income tax changes
VAT changes
Capital allowances and cars

As usual, there's also a tax fun(!) item at the end of this newsletter and a question about prospective changes to the website.

Q & A on Domicile and Residence

This article by Bill Stevenson will give you the links for accessing HMRC's questions and answers on the developing residence and domicile rules.

New Deadlines for Online Filing of Tax returns

There are important changes ahead for Personal Taxpayers / Employers / and CT Return filers in relation to online filing - along with taxfree incentives - and earlier return enquiry window closures

Tax newsletter 11 March 2008

It's Budget day tomorrow so we are publishing this week's newsletter a couple of days earlier than ususal to avoid the post Budget commentaries that will appear from every quarter.

In the meantime payroll departments are starting to plan their year end PAYE returns and P11D submissions. This week we look at some of those nitty-gritty PAYE issues that crop up at this time of year.

Subsistence rates
Maternity pay
Annual and Nil returns.

As ususal, there's also a tax fun(!) item at the end of this newsletter.

Tax newsletter 6 March 2008

In years past there would be a period of quiet in the tax world just before the Budget while the Chancellor prepared his speech and the Inland Revenue ceased all announcements. The Budget will be presented next week on 12 March but in the mean time it's business as usual as the tax related announcements are still coming thick and fast.

This week's 3 practical topical issues are derived from two sets of proposed legislation and another HMRC initiative.

Entrepreneurs' relief
Employee status settlements
Students' tax week

Tax relief on the Bahamas retreat?

Just an idea, but this article is meant to set you thinking how you can help your client to cut his interest costs by 22% if basic rate and 40% if higher rates apply - or get that special item the client has always wanted but never known where to get the money.

Tax newsletter 28 February 2008

HMRC are changing the way they deal with taxpayers and the tax advisers or accountants that represent them. This week we explore three new HMRC initiatives that could affect you and your clients.

Letters to landlords
Informants' data
Working with agents

So you thought your client could escape abroad

This article by Bill Stevenson touches on the potential for your clients getting caught for unexpected Capital Gains Tax when they return to the UK after a period abroad. No doubt they thought (or heard it over a pint) that it was safe to depart our shores to escape the tax net on the disposal of assets - without of course having asked for advice from their accountant - who like yourself now - was clued up after having read this article. This can be a useful aide memoir for any professional who gets landed with awkward questions from their clients just as they are going - or more likely just as they have returned to the UK.

Tax newsletter 21 February 2008

For many accountants February is the month when you bill clients, pay outstanding practice expenses, and generally have a financial tidy-up. As this urge to spring-clean the debtor's ledger may extend to your clients, we focus this week on loans, from a purely practical perspective:

Directors' loans
Student loans
Deferring the state pension (a loan to Government)

You will also find further comments and advice on our blog and in our articles TANK.

Tax newsletter 14 February 2008

This week, in honour of St. Valentine we have quick summary of the tax implications of getting married. Less romantically we look at the HMRC powers to revoke gross payment status for CIS registered businesses, and the problem of deferring gains into 2008/09 or later.

Tax and marriage
CIS gross payment status
Deferring gains

If the recent press comments about the non dom rules make you more inclined to read up on this than previously, you can find past articles and comments in the TANK on our website.

Tax newsletter 8 February 2008

The personal tax self-assessment season ended in chaos for some, as the HMRC computer system went into melt-down. This week's newsletter contains an update on how this situation may allow you to appeal against a late filing penalty, and news on two other topical tax administration issues.

How to appeal against a late filing penalty
NIC class 4 refunds
Changes to businesses operating under the CIS

In addition we have a number of new items in the TANK on our website - including an article that highlights the changes we will see in the personal tax returns for 2007/08.

Clarification on Non-Domicile & Remittance Basis

The Acting Chairman of HMRC, Dave Hartnett, has issued a letter clarifying some issues regarding the current Residence and Domicile Consultation and you can see the outline in the text. If you need any advice please feel free to consult Bill Stevenson or any other T.A.N. specialist if you have doubts about your client's position. See also the earlier article by Erika Holden

Reasonable Excuse for Late Filing of Returns

HMRC have recently issued a note regarding the relaxations in the terms of the extension of enquiry window and late filing penalties where the tax return was filed late owing to HMRC online difficulties. The full text is laid out in the article but remember that reasonable excuse can also arise in many ways and if you are in any way doubt as to whether there is a chance of your clients other reason being a reasonable excuse feel free to consult Bill Stevenson or any other T.A.N. specialist.

The joys of spring ...

Attending a Commissioners meeting can be a daunting process particularly when there is not exactly an even playing field.

Thinking of next year

Changes have been made to the self assessment returns for 2007/08; this article by Ros Martin considers those changes and the possible impact.

Tax newsletter 31 January

By the time you read this I guess you will have filed any last minute personal tax returns. It's hard to believe that the first January filing deadline was as far back as 1998 after which many of us hoped we could avoid the nightmare repeating!

As promised when you registered on our website this newsletter contains a practical tax update specifically written for accountants in general practice. This week we have highlighted three tax issues that will need your attention before 6 April:

The new CGT entrepreneur's relief
Residence and remittances
PAYE settlements

Openness & Early Dialogue with HMRC in Enquiries

This article outlines the pilot that you might come across that started in November and is due to end in April 2008 with regard to Full and Aspect enquiries by HMRC. Remember that you should not restrict your consideration to the limited reasons for opening the enquiry and be alive to the possibility that your client may need to advise you of irregularities.

Just because they tell you the reason for opening the enquiry do not be lulled into a false sense of security. There is nothing better than full and complete preparation for both the agent and the client before deciding to attend a meeting with HMRC. Also bear in mind that not attending a meeting cannot be taken as a sign of non-cooperation (except in COP9 cases of course)

If you need any assistance (back up or frontline) with the managing of your enquiries please feel free to contact Bill Stevenson or any other T.A.N. Enquiry specialist

CGT - more changes

A summary, provided by Ros Martin, of the new rules for CGT and partnerships announced last week. This will impact on any partner introducing chargeable property into partnerships.

Tax newsletter 24 January

If you are struggling to complete capital gains computations for those last few tax returns, we have a reminder about the CGT reliefs that can reduce the taxable gain on the sale of residential property. We also cover two important tax issues that you may need to raise with your clients:

Potential HMRC strike on 31 Jan

Late night taxis

CGT reliefs on homes

Draft Legislation on Residence and Domicile

On Friday 18th January the draft legislation on residence and domicile was published. Tax Advisors have been waiting for this since before Christmas. As well as affecting non domiciled individuals the draft legislation is far reaching and affects offshore companies and offshore trusts. In this Article Erika Holden highlights some of the changes.

CGT reform - reformed - Jan 08

Well it’s taken a while to arrive but we now have the draft legislation on the capital gains tax reform. These will come into effect for the tax year 2008/09 onwards. Erika Holden explores the Chancellor's announcement.

Benefits In Kind or Pains in the Butt

Mark Lee of TaxAdviceNetwork.co.uk highlights a number of myths surrounding the whole area of benefits in kind and suggests some ways to reduce the attendant pressure on anyone who has responsibility for assisting with an employer’s related reporting obligations.

Tax newsletter 17 January 2008

Just two more weeks to go to 31 January, which is not only the deadline for submitting 2006/07 personal tax returns but also for finalising 2006/07 tax credit figures and for paying tax due. We have up to date advice for accountants on all those points this week:

How to pay the tax
Avoid late filing penalties
Tax credits final figures

Tax newsletter 10 January 2008

As accountants charge along the home straight towards the personal tax return deadline of 31 January we have some tips for tax returns, which may make your life easier during this stressful month.

Receipt of tax returns
Overcoming e-filing problems
PAYE coding difficulties

Newsletter 3 January 2008

In this, our first newsletter of 2008, we look at the practical things you need to know about:

VAT registration applications
IHT nil rate band
Gift Aid

GST in Jersey

www.mekad.com/Maked_Presentation/GST_Newsletter.pdf

An adviser's guide to income splitting

This article by David Kirk examines the political context into which the income splitting proposals are being introduced - in particular the position pertaining in other countries - looks at the practicalities from the points of view of both advisers and the Revenue, describes the legislation, highlights some problem areas, and suggests to advisers what they need to do now.

Newsletter 20 December 2007

This week, in our final newsletter for 2007, we are highlighting some issues that will affect many of your clients - and which could even impact your own practice. We look at the measures you could take to assist your clients (and yourself) as regards:

Business sales
Sharing business profits
Managed service companies

Newsletter 13 December 2007

This week, in our penultimate newsletter for 2007 we are highlighting some fundamental changes that will impact your clients from April 2008 and, for each one, we explain what you need to be doing now.

Income shifting
Capital allowance changes
Taxation of non-doms

Newsletter 6 December 2007

In addition to some more general topics, this week we focus on three things you can build into your chat with clients when discussing their tax returns or accounts.

Dealing with older clients
Company accounts and tax returns
Company cars and fuel

Newsletter 29 November 2007

This week we tell you how you get through to the Revenue offices, explain the new rules about VAT invoicing, and warn of penalties that could fly if sick pay, maternity pay etc are incorrectly handled.

Second homes and capital gains tax

With the ever increasing number of people acquiring a second or holiday home there is an essential piece of planning that can reduce capital gains tax on a future sale. You must however implement the planning within two years of buying your second home.

Corporation Tax Return Enquiry Window

For CT accounting periods ending after 31st March 2008 you will have to decide if it's better to

(a) file early and get the enquiry window closed early

(b) file on time as usual and have the same enquiry window closing date

Verification of EU VAT Numbers

When trading with customers in the European Union (“EU”) and not charging VAT on your supply of goods or services, it is crutial that you obtain their local VAT number and display it on your sales invoice to them.

Who decides how much customs duty to pay?

Many businesses cede control of their customs duty bill and their compliance record by failing to manage their freight forwarder or customs clearance agent effectively.

Control - and therefore management - is ceded in the mistaken belief that outsourcing an operation such as making customs declarations and the legal responsibility for their correctness are one and the same.

Which other taxes would a business wholly place responsibiity for into the hands of a third party who was not a tax expert?

What can be done to reduce these risks in a business and to reduce the anxiety and loss of sleep directors, managers and others experience over this ?

Newsletter 22 November 2007

Protecting and moving clients’ data securely is the hot issue this week. We look at your own obligations and the task of getting clients’ tax data through to HMRC using their online systems.

Newsletter 15 November 2007

This week we concentrate on some things your clients may not tell you, but you need to know to correctly prepare their tax returns.

What sort of tax advice do you give?

Specialist, Compliance or Dangerous?

An article by Mark Lee that compares and contrasts the informed and less informed approaches to giving tax advice especially in the context of professional negligence claims.

Newsletter 8 November 2007

When to sell investments; New penalties for VAT investigations; Entertaining - what's tax deductible?

Tax Newsletter 10 Dec 09

This newsletter always focuses on timely, practical and commercial tax issues. So this week there is no need for any reference to anything announced by the Chancellor in his Pre-Budget Report yesterday. The more immediate task for most practitioners is to submit outstanding 2008/09 SA tax returns. So this week we have a timely warning about new HMRC procedures for forms 64-8 and CG34 and some practical tips for reporting overseas income.

Tax Newsletter 03 Dec

1 January 2010 sees the introduction of new VAT rules for cross-border selling and a new procedure for reclaiming VAT paid in other EU countries. We have some practical advice on how you can help your clients by taking action now in both these areas. We also set-out the new advisory fuel rates for company cars.

Tax Newsletter 26 Nov

This week's practical newsletter reviews the changes made to the HMRC online CT and VAT filing systems following the software upgrades last weekend. We also have a round up of the latest known problems for CIS, SA and PAYE online filing.

New Disclosure Opportunity - HMRC announces terms

It's never too late - HMRC announced the terms of the New Disclosure opportunity that commences on 1st September 2009...... you need to help your clients and make them aware of the need to act promptly. If you don't have an accountant you can also approach us directly.

There are two opportunities that commence on the same date and require different considerations. Do seek help from one of our specialists if you are unsure what to do.

New Tax Amnesty???

A possible second Tax Amnesty is rumoured to be considered and also HMRC are looking for Offshore Tax evaders to prosecute to bring the message home....

Looks like a flat rate 10% for first time disclosers and online filing for agents this time

Does your client have Offshore property letting losses?

With one hand the EU gives it and with the other GB UK ltd takes it away. Take advantage of the short term bonus if your clients have foreign property letting losses brought forward. If you need help with it contact Bill Stevenson or any of our specialists for assistance

The new Tribunal regime

Although we have a new Tribunal System which has replaced the General and Special Commissioners, it is hoped that taxpayers will not find the new procedures too much of a change. This article gives a review of the new system including details of a change in internal HMRC procedures to compliment the legislative changes

Spanish Tax refunds

If your client sold a Spanish property within the last 4 years (time limits apply) and before 31st December 2006 a refund of tax may be due

Guide to Jersey (Taxation) an overview

A useful summary and introduction to the tax regime in Jersey, written by Tax Advice Network member Mehul Kotedia who is based in Jersey.

HMRC are not always right - Don't let them bully you

This article by Bill Stevenson arises from his observations on a couple of recent cases and it would be easy to fall foul of a negligence claim if you don't take proper care and attention. There is a suspicion that HMRC are trying to cut corners to get through all the "golden" information they hold and not apply the law as it was intended. They should not be allowed....and YOU are at risk

Read on ....

HMRC Enquiries

This article by Bill Stevenson provides a taster of what can be achieved by applying proper expertise at various stages of an HMRC enquriy.

Q&A about the Tax Advice Network

The tax editor of AccountingWeb interviewed Mark Lee for a feature item on their website. The full Q&A session is reproduced in this article.

An insider's guide to finding and choosing accountants and tax advisers

Mark Lee, Chairman of the Tax Advice Network, has written a twenty page guide for anyone who may be confused as to the difference between an 'accountant' and a 'tax adviser'.