UK Tax Specialist’s Blog

HMRC Hacked: What Might’ve caused The Sunday Times To Think That?

Posted by on Aug 17, 2017 in Opinion, Personal Tax Planning | Comments Off on HMRC Hacked: What Might’ve caused The Sunday Times To Think That?

HMRC have responded to a recent report in the Sunday Times that criminals have hacked into taxpayers’ online tax returns and have flatly denied that it’s happening. What Might cause The Times Think HMRC have been hacked? The Sunday Times highlighted an incident involving Jackie Annesley, the Sunday Times Style Magazine’s editor, who alleged criminals had falsified her tax return in order to steal £1,826. Annesley received notification concerning suspicious activity occurring on her self-assessment account. After the hacking...

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The VATman can go back 20 years!

Posted by on Aug 10, 2017 in VAT | Comments Off on The VATman can go back 20 years!

Background Compulsory VAT Threshold The case of Ahmed Rasouli (t/a Euro Foods) v HMRC was ostensibly about whether the taxpayer registered for VAT on the correct date. The starting point of any VAT registration challenge is to determine the date when a business is obliged to register, i.e. when the compulsory registration threshold has been exceeded. Facts: Taking Over a Going Concern Euro Foods traded as a convenience store selling food, household products, alcohol and tobacco. Rasouli took over the business of Euro Foods on 1 April 2012,...

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Working Tax Credits Explained

Posted by on Aug 3, 2017 in Family Tax Credits | Comments Off on Working Tax Credits Explained

Don’t be fooled by the name: Working tax credits are little to do with tax. Unlike tax “reliefs”, people need not be paying any tax to receive tax “credits”. Tax credits are essentially a means of re-distributing income by paying money to working people on low incomes or families raising children and are operated by a specialist section of HMRC (The Tax Credit Office). If you’re eligible, you can get it irrespective of your employment status and you will get a basic element plus extra elements, depending on your...

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13 Unusual Excuses as to why a Tax Return was late, Part IV

Posted by on Jul 27, 2017 in Personal Tax Planning | Comments Off on 13 Unusual Excuses as to why a Tax Return was late, Part IV

Last year on January 16th, I posted my third Blog on the subject of excuses given by taxpayers, as to why their Tax Returns were submitted lateand taken from the now annual press release by HMRC. This year the press release of unusual and unsuccessful excuses used by taxpayers in penalty appeals included excuses ranging from a burning boat to a toddler with a box of crayons. All have been put forward in vain attempts by taxpayers to have their fines wiped out under the ‘reasonable excuse’ provision. It will not surprise anyone that despite...

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Company directors don’t have to submit a Tax Return

Posted by on Jul 20, 2017 in Personal Tax Planning, Self Assessment | Comments Off on Company directors don’t have to submit a Tax Return

This was the headline grabbing conclusion of a tax tribunal case concerning late filing penalties and it confirms what many accountants tell their clients; that HMRC guidance is wrong. HMRC Tax Return guidance The gov.uk guidance on directors’ responsibilities states “a company director must register for self-assessment and send a personal SA tax return to HMRC every year.” Elsewhere on the HMRC guidance pages there is a list of who must send in a tax return, which says “You’ll need to send in a tax a return if,...

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UK Tax Questions Answered by Shrewsbury Accountant No.24

Posted by on Jul 13, 2017 in Business Start-up, Corporate Tax Planning, Personal Finance, Personal Tax Planning | Comments Off on UK Tax Questions Answered by Shrewsbury Accountant No.24

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: Can losses on my horse be offset against Income Tax One-off freelance fee Inheritance Tax from abroad Claimable car expenses Expenses for working from home 1. Can losses on my horse be offset against Income Tax In June 2016 I purchased a 25% share in a 4 year old race horse that had been running in prize winning races at venues such as Haydock...

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Anti-Money Laundering Directive

Posted by on Jul 7, 2017 in Comments on Global News, Opinion | Comments Off on Anti-Money Laundering Directive

In a world where regulators are always fighting to keep pace with technology, all eyes were on what impact the latest Anti-money laundering directive is likely to have in the fight against organised crime. It will not surprise you that during its passage onto the statute books, the fourth directive (4AMLD) was subject to amendments which became known, confusingly, as the 5AMLD. So, what are the highlights? Grabbing the headlines were changes and extensions to the current regulations, including rules that will mean anyone who owns more than...

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Late Filing Penalties & Reasonable excuses

Posted by on Jun 30, 2017 in Self Assessment, Tax Investigations | Comments Off on Late Filing Penalties & Reasonable excuses

Do they still work with HMRC? The quick answer has to be yes, but you have to make sure that you have all of your ducks in a row before entering into the appeal process. So, I’ve trawled the Tax Tribunal cases from the last few months and looked at cases appealing late filing or late payment penalties, where the taxpayer argued – and won – on the grounds of reasonable excuse. The cases I’ve highlighted here are a mixed bag, but in view of the imminent arrival of Making Tax Digital one trend worth noting is the potentially disruptive impact of...

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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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