Tax

HMRC warns on tax refund scams

HMRC is calling on people to stay vigilant in the fight against fraudsters who are using email and text messages to scam them out of their savings. The tax authority is currently processing tax refunds after the end of the 2017 to 2018 tax year. However, criminals are taking advantage of this by sending out scam emails and SMS-messages to

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HMRC to delay introduction of new digital services for individuals

HMRC has said its switch in focus to Brexit is the main reason why it is to delay plans to introduce more digital services for individuals. HMRC has admitted it was ‘overly ambitious’ about the number of individuals who would stop contacting the department by phone and post after it introduced digital channels.  At the same time, HMRC has been

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OTS wants action on ‘patchwork’ of business tax reliefs

The Office of Tax Simplification (OTS) is calling for an urgent overhaul of what it calls ‘the complex patchwork’ of tax charges and reliefs that apply at various points in the business lifecycle to reduce complexity, make reliefs more accessible and to encourage UK businesses to fulfil their potential. The OTS has published a report looking at the impact of

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HMRC helping individuals to disclose undeclared tax

HMRC has updated its disclosure service calculators used to work out the tax, interest and penalties owed on outstanding tax to include the 2016/2017 tax year. Trustees and tax advisers can use HMRC’s calculators to help work out the tax, interest and penalties owed on straightforward tax affairs. The disclosure service is for those who have not declared all income

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New rules for taxation of termination payments

Employers now need to pay Income Tax and Class 1 National Insurance contributions (NICs) on an element of all termination payments (from 6 April 2018), whether or not they are contractual payments. The element that is now chargeable to Income Tax and NICs is the amount of the termination payment that represents payment in lieu of notice (PILON). This change

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Changes to HMRC’s tax anti-abuse guidance

HMRC have published updated general anti-abuse rule (GAAR) guidance, effective from 28 March 2018. HMRC’s GAAR guidance is for use to assist in recognising abusive tax arrangements and the process for counteracting them. Part A sets out the purpose and status of the guidance; Part B provides a summary of what the GAAR is designed to achieve and how it

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Employers need to provide details for all Benefits in Kind

New rules for Optional Remuneration Arrangements came into effect on 6 April. Employers now need to report all Benefits in Kind (BiKs), including those under the Optional Remuneration Arrangements (OpRAs), to HMRC on form P11D from 6 April 2018, unless they are registered to voluntarily payroll benefits. OpRAs are where an employee gives up the right to an amount of earnings

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Adjustments to UK tax reliefs for Scottish tax regime

With just days to go until Scotland’s devolved tax rates come into effect, HMRC has published a notice of how five UK tax reliefs will continue to work as they were intended when Scottish rate of income tax (SRIT) and bands change in April 2018. This is required because of the new discrepancies between SRIT and the rest of the UK.

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Small businesses spend three working weeks on tax compliance

The average UK small business spends £5,000 and three working weeks every year on tax compliance, according to research from the Federation of Small Businesses (FSB), which is calling for the system to be simplified. The survey of over 1,000 small businesses found that almost half (46%) say determining the tax rates at which they are required to pay is

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