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

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

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'.

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

Watch out for Clients with Liechtenstein accounts

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

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.

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.

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

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.

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

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

Savvy Ways to Extract Cash from your Ltd Company

In an article aimed at taxpayers Andrew Cazalet outlines some lesser used techniques – some at rates as low as 10% (before 5 April 2008) and 18% (after 6 April 2008) - for directors/ shareholders to extract cash from owner managed Limited Companies.

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.

Capital Gains Tax Planning post Pre Budget Report

An outline of fee opportunities for accountants based on tax saving ideas for clients following from the changes announced in the recent pre budget report.

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?