UK Tax Specialist’s Blog

Latest Tax News

Posted by on Jun 23, 2017 in Comments on Global News, Personal Finance, Personal Tax Planning, Tax Investigations | Comments Off on Latest Tax News

HMRC, Hells Angels, Goldenballs and other Tax News HMRC loses case against Hells Angels’ leader Hells Angels president Angelo Pandeli, 46, escaped punishment for tax fraud when his accountant stood up in court and took the blame. Pandeli was accused of making fraudulent claims on his tax return for the 2014-15 financial year, but his accountant submitted an affidavit to court stating he was in fact to blame “The accountant has certainly fallen on his sword,” Magistrate Jennifer Atkinson commented. First cash Lifetime ISA...

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General Election 2017: Is business uncertainty the new norm?

Posted by on Jun 15, 2017 in Business Tax, Comments on Global News, Opinion, Personal Finance | Comments Off on General Election 2017: Is business uncertainty the new norm?

Last week’s general election treated the public to another extraordinary night of political shocks, but the muted reaction of the business world shows that they have become somewhat inured to uncertainty. The stability so craved by industry was often quoted by Theresa May as the reason for calling the early election, but the result means that the country and its businesses are in for yet another period of policy ambiguity. However, despite post-election statements from bodies such as the CBI and the Federation of Small Businesses calling for...

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UK Tax Questions Answered by Shrewsbury Accountant No.23

Posted by on Jun 9, 2017 in Personal Finance, Self Assessment, VAT | Comments Off on UK Tax Questions Answered by Shrewsbury Accountant No.23

Here is my latest tranche of UK Tax Questions Answered. Each question is from a Tax blog reader which I hope will be helpful to you or at least you’ll find the answers interesting. The Topics today: Two companies, two VAT schemes Government Gateway problems Tax code changed to Zero Annual State Pension Credit Mileage claim 1. Two companies, two VAT schemes I would like some advice please. I set up two companies a year ago (same shareholders, directors and share the same premises). Company 1 markets a property refurbishment business, gains...

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HMRC AI: Taxpayer vs Machine

Posted by on Jun 2, 2017 in Personal Tax Planning, Self Assessment | Comments Off on HMRC AI: Taxpayer vs Machine

If you take current tax legislation, add a little artificial intelligence of the sort underpinning digitisation, pursue it to its logical conclusion and you could get a head-on collision as man meets machine, as a tribunal judge suggested recently. His comments were all the more interesting coming alongside a recently published KPMG report, ‘Technology in Tax’. Tax Technology Revolution KPMG’s report is a thought-provoking glimpse at the possible future in tax and technology and in essence it looks into the revolution likely to be generated...

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VAT on second-hand goods: Do Puppies Count?

Posted by on May 25, 2017 in VAT | Comments Off on VAT on second-hand goods: Do Puppies Count?

This is a VAT Tribunal case in which the taxpayer claimed the puppies it bought from a non-VAT registered breeder were eligible for the second-hand goods scheme. The second hand margin scheme is a concession to businesses that significantly reduces their VAT payments compared to normal VAT accounting. It means a business only accounts for output tax on its profit margin, rather than the full sales value. The record keeping requirements are quite strict and are covered by VAT Notice No. 718: The Margin Scheme. Outline of VAT Tribunal The...

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HMRC Bully Boys Get Their Comeuppance

Posted by on May 18, 2017 in Tax Investigations | Comments Off on HMRC Bully Boys Get Their Comeuppance

I’m going to tell you a tale of a tax investigation which opened with the nightmare letter every taxpayer dreads, but in a dramatic turn round, a Tax Tribunal held that it was HMRC’s information notice that offended every rule in the book. Accusations of Fraud HMRC opened the offensive with a letter to Mr Fergus Anstock, stating it had “reason to suspect… you have committed tax fraud.” This was followed up with meetings and letters over the subsequent two years and culminated in the issue of a very broadly worded information notice, together...

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7 little known financial consequences of the snap election

Posted by on May 12, 2017 in Accounts, Personal Finance, Personal Tax Planning, Self Assessment | Comments Off on 7 little known financial consequences of the snap election

Taxpayers caught out by shortened 2017 Finance Act A slim Finance Act 2017 was passed on 27th April, after shedding some 600 pages of tax proposals, some of which were due to take effect on either the 1st or 6th April. Therefore any taxpayers who have acted on the basis the new tax rules would apply may lose out. Drastic cuts to Finance Act 2017 The largest Finance Bill in UK history was cut from 762 pages to 148 pages so that the opposition parties would agree to it being passed in the clear-up before Parliament was dissolved. This strategy...

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9 of the Best weird and wacky Tax Expense Claims

Posted by on May 5, 2017 in Accounts | Comments Off on 9 of the Best weird and wacky Tax Expense Claims

Any regular reader of this Blog will recall that I have each year, provided you with a selection of flimsy excuses made by taxpayers as to why they hadn’t submitted their Self-Assessment Tax Return on time or why their dubious claims for expenses will not earn them a tax reduction this year. These excuses range from the clearly ridiculous, passing through dubious at best, to ending up at some that are downright funny. All of these excuses are contained in lists published by HMRC on their website every February and this week I’ve brought you a...

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Making Tax Digital – What its going to cost you!

Posted by on Apr 28, 2017 in Corporate Tax Planning | Comments Off on Making Tax Digital – What its going to cost you!

Most of you will not know much if anything about Making Tax Digital (MTD) yet. You may have been told it will be “a digital service that enables small businesses to access everything they need to manage their tax affairs in a secure online space”, and if you’re anything like most of my clients, your understanding of this explanation is probably on par with your understanding of Esperanto. HMRC seems perfectly happy to complicate life for small businesses because in my experience, their idea of how a small business operates...

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Saving Tax: How Much is the Dividend Allowance

Posted by on Apr 20, 2017 in Corporate Tax Planning, Personal Finance, Self Assessment | Comments Off on Saving Tax: How Much is the Dividend Allowance

On 6th April 2016 a new Dividend Allowance in the form of a 0% tax rate on the first £5,000 of dividend income in a tax year, was introduced by the Chancellor but there is still a lot of confusion amongst both Company Directors and shareholders on how the allowance will operate in practice. This new allowance allows every individual to receive up to £5,000 of dividend income per year, taxed at 0%. It doesn’t matter what rate of tax the individual pays on their other income, the first £5,000 of dividend income will be taxed at 0%....

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