Tax / 38 posts found
Football agent scores massive own goal
HMRC were quick to publicise their victory in a recent tax case that resulted in a well-known football agent facing a £1.2m tax bill. According to their press release, former football agent Jerome Anderson lost his £1.2 million tax battle with HMRC during a case heard at the Upper Tribunal. This showed that Anderson and eight others failed in their attempt to avoid large amounts of tax. The scheme involved investments in the recruitment and training of young footballers at the Bafana Soccer Academy in South Africa. Anderson attempted to use this investment to claim a £3 million artificial [...]
Undeclared offshore assets
From 1 October more than 100 countries, including the UK, will be able to exchange data on financial accounts under the Common Reporting Standard (CRS). CRS data will significantly enhance HMRC’s ability to detect offshore non-compliance and it is in taxpayers’ interests to correct any non-compliance before that data is received. The most common reasons for declaring offshore tax are in relation to foreign property, investment income and moving money into the UK from abroad. According to HMRC, over 17,000 people have already notified the department about tax due from sources of foreign income, such as their holiday homes [...]
Working from home?
We are often quizzed by clients who are contemplating working from home: what are the tax consequences? And in particular, will I have to pay capital gains tax? Capital gains tax Generally speaking, if your business use is limited to allocating space for a home office, then as long as there is duality of use, no capital gains tax complications should arise when you sell the property. Duality of use means that your home office: doubles as a spare bedroom, or a storage space for domestic items, or is a study or has a similar non-business as well [...]
Penalties to be points based
Drivers face disqualification from driving if they accumulate 12 or more penalty points for driving offences. The resulting ban can last from 4 to possibly 11 years depending on the gravity of the offence. HMRC seem to think that this point based system is a good idea and they now intend to include draft clauses to the forthcoming Finance Bill that will introduce a points system covering the late filing of tax returns. In their notes attached to the draft clauses HMRC say: The government wishes to encourage compliance with regular return submission obligations but does not [...]
Tax security deposits to be extended
We have listed below details of a forthcoming change to the taxation of companies that were disclosed in the draft clauses published last week for the forthcoming budget. The change outlined expands the rights of HMRC to demand a security deposit from “at risk” tax payers. In their draft notes HMRC say: HMRC can require some businesses to provide a security, in the form of cash or a performance bond, where this is considered necessary to protect the revenue. Securities may be required where a taxpayer has a poor compliance record and in “phoenix” type cases where a [...]
Unmarried couples to qualify for spousal tax breaks?
In a landmark decision, the Supreme Court has ruled that discriminating on the basis of sexual orientation, or a decision to live together rather than marry, is a breach of human rights. Presently, couples need to be in a formal civil partnership or married to be able to claim the raft of tax benefits available. These advantages include: Transfers of chargeable assets between civil partners and married couples is free of capital gains tax and inheritance tax. In appropriate circumstances spare personal allowances can be transferred from one partner to the other. In the case taken to [...]
Why don’t they join up the dots?
According to HMRC, around three million couples across the UK have boosted their finances by claiming the Marriage Allowance, but more than a million married and civil partnered couples are still eligible for the free tax break worth up to £238 a year. Thanks to the start of the new tax year couples can backdate their claim and boost a potential tax refund to a possible £900. HMRC further announced: Applying for Marriage Allowance is quick and easy and once an application is complete it’s processed immediately. The new online form takes fewer than ten minutes to fill out and [...]
Capital Gains Tax and the Family Home
This is the third and final post (at least for now) relating to tax on properties. It covers capital gains tax on your main residence. As always, please see the disclaimer at the end!!! if you want to discuss how any of these issues – or other tax and related business matters – may affect your business please get in touch (email here or telephone 01905 21411) for a free, no-obligation discussion. To sign up for our monthly Newsletter for Small Business visit our webpage here. Capital Gains Tax and the Family Home The capital gains tax (CGT) exemption for [...]
Top Tips – August 2011
This is a round-up of questions that have been raised by clients over the past few weeks. They are being posted here for general information, but please see the disclaimer at the end!!! if you want to discuss how any of these issues – or other tax and related business matters – may affect your business please get in touch (email here or telephone 01905 21411) for a free, no-obligation discussion. To sign up for our monthly Newsletter for Small Business visit our webpage here. Reducing the reporting of expenses and benefits Q: I've recently submitted forms P11D and P11D(b) [...]
Buy to Let Properties
Following our post about the tax aspects of property investment, this covers issues relating to 'Buy to Let' properties. As always, please see the disclaimer at the end!!! if you want to discuss how any of these issues – or other tax and related business matters – may affect your business please get in touch (email here or telephone 01905 21411) for a free, no-obligation discussion. To sign up for our monthly Newsletter for Small Business visit our webpage here. Buy to Let Properties In recent years, the stock market has had its ups and downs. Add to this the [...]