UK Tax Specialist’s Blog

Ken Dodd has the last laugh over HMRC

Posted by on Apr 5, 2018 in Personal Finance, Tax Investigations | Comments Off on Ken Dodd has the last laugh over HMRC

This week saw the passing of comic legend Ken Dodd, and while friends, family and fans alike mourn his loss; one of Dodd’s final actions was clearly a last flourish of his tickling stick at HMRC and his ultimate two figure salute to them after an ongoing battle with them lasting 30 years. The final chapter only began 48 hours before his death when the comedian married long-term partner Anne Jones, with whom he had shared his Liverpool home for the past 40 years. While the couple were reportedly clearly delighted to have finally tied the knot,...

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HMRC suffers major Upper Tier defeat after procedural failure

Posted by on Mar 29, 2018 in Self Assessment, Tax Investigations | Comments Off on HMRC suffers major Upper Tier defeat after procedural failure

The Upper Tribunal (UT) has upheld a First Tier Tribunal decision that HMRC did not satisfy the necessary conditions for making a discovery assessment, and so the taxpayer escaped a tax bill of £475,498. The facts in brief In 2008, Raymond Tooth reduced his self-assessment tax bill when he invested in a tax avoidance scheme, which was subsequently invalidated by new legislation. In 2014, HMRC issued what it believed was a valid “discovery” to recover tax of £475,498.20 from him. What is ‘discovery’? The Taxes and management Act of 1970,...

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IS HMRC EXTRACTING THE URINE?

Posted by on Mar 22, 2018 in Self Assessment | Comments Off on IS HMRC EXTRACTING THE URINE?

This week’s Blog is about growing concerns that HMRC is going well beyond its remit in demanding more information than the law requires taxpayers to submit. Let us start with the legislation which gives HMRC the power to compel us to make tax returns, which is contained in the Taxes & Management Act 1970 which states: “a return of …… income, computed in accordance with the Income Tax Acts and specifying each separate source of income and the amount from each source.” I would like to know; just how do we get from being...

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Employed or Self-employed?

Posted by on Mar 15, 2018 in Payroll Services, Self Assessment | Comments Off on Employed or Self-employed?

Today’s Blog concerns a recent Tribunal case reported in Tax Insider this month, when a taxpayer challenged HMRC on his status as in directly affected the amount of both tax and National Insurance Contributions (NICs) payable. For tax purposes, this is particularly relevant in relation to the deductibility of expenses and the ways in which losses can be offset. NICs are also relevant for an employed earner, both the employee and the employer are likely to be liable to Class 1 contributions, and these are usually more expensive than the Class...

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Why Nestle Lost Zero Rated VAT Battle

Posted by on Mar 9, 2018 in Corporate Tax Planning, VAT | Comments Off on Why Nestle Lost Zero Rated VAT Battle

As I’ve commented before, VAT has some quirky rules and if you thought the VAT rules took the biscuit in defining Jaffa Cakes as…. well, cakes; but here is a case where the flavour of a milkshake governs whether or not 20% VAT is chargeable. Every now and then, when I’m dealing with a VAT case, I sometimes think that there can’t be many scenarios where VAT liability hasn’t been definitively settled; then along comes a Tribunal case to prove me wrong. A ‘quik’ summary This case is about the VAT treatment of Nesquik powder designed to flavour...

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Bank of Mum & Dad comes a cropper!

Posted by on Mar 1, 2018 in Business Tax, Tax Investigations | Comments Off on Bank of Mum & Dad comes a cropper!

This week’s Blog concerns one of the UK’s biggest lenders (or is that charities?) the Bank of Mum & Dad and highlights the need for a business motive, a commercial approach and watertight records when paying relatives. Unfortunately for Colin Nicholson HMRC considered that he had got this wrong on his Tax Return. Deduction Claimed The first tier tax tribunal (FTT) considered a deduction for wages payments by a sole trader to his student son Mark in the case of Nicholson v HMRC. Following an enquiry into Nicolson’s 2013/14 tax return,...

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IR35 WIN FOR HMRC

Posted by on Feb 22, 2018 in Payroll Services, Personal Finance, Self Assessment | Comments Off on IR35 WIN FOR HMRC

HMRC has defeated a BBC presenter in the first IR35 ruling since 2011. The first tier tribunal (FTT) ruled the TV personality’s contract was caught by IR35 and landed her company with a £420,000 bill. Former ‘Look North’ presenter Christa Ackroyd lost her appeal against the tax authority when the FTT ruled that her personal service company (Christa Ackroyd Media Ltd), owed income tax and national insurance contributions (NICs) amounting to £419,151 covering the tax years: 2006/07 to 2012/13. This judgment is the first of a number of IR35...

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Protected: Chartered Accountant Pays For Red Mist

Posted by on Feb 15, 2018 in Opinion | Comments Off on Protected: Chartered Accountant Pays For Red Mist

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Dodgy Tax Expense Claims

Posted by on Feb 8, 2018 in Self Assessment | Comments Off on Dodgy Tax Expense Claims

Following quickly on from HMRC’s recent release of taxpayers’ weird and wonderful excuses as to why they were late submitting their Tax Returns by the 31st January deadline, they’ve now published a list of the oddest expense claims by taxpayers. Angela MacDonald, HMRC’s Director General of customer services commented: “Each year we receive a huge variety of expense claims by taxpayers in an attempt to reduce the amount of tax they should pay and quite frankly many of them are so absurd as to be laughable. It is unfair to make honest taxpayers...

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Alien Sightings & Other Tax Return Excuses

Posted by on Feb 1, 2018 in Self Assessment | Comments Off on Alien Sightings & Other Tax Return Excuses

It’s that time of year again, the 31st January deadline has just passed and a significant number of taxpayers have not yet submitted their Tax Returns. I have had a number of clients trotting in with their records in January, apologising for being late (yet again!) and begging me to prepare their Accounts/Tax Return before the 31st. As we were already working flat out with all senior staff putting in as many extra hours as they can, I’ve had to tell these laggards that they will have to pay the £100 fine for being late, but if...

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