An announcement has been widely expected and commented on in this and other blogs (see SME blog) following on from the Revenue’s defeat in the House of Lords. This is a case of the dog that didn’t bark or at least not yet….
Continue Reading...As mentioned on my colleagues SME plus blog , The Chancellor of the Exchequer, Alistair Darling, will be presenting his 2007 Pre-Budget Report and the outcome of the Comprehensive Spending Review on the afternoon of Tuesday 9th October.
Cathy Corns will post details of important announcements here shortly after the end of his speech.
A timely reminder that modifications are required to the format of some invoices from 1 October 2007.
The businesses most affected are those
Continue Reading...HMRC have tightened up their interpretation of rules which can enable employers to pay for taxis for late working employees without incurring a tax liability.
If an employee works later than usual at night it is not uncommon for an employer to pay for a taxi home. Is this a taxable benefit? In general – Yes – but there is an exemption in certain circumstance provided by the tax legislation (section 248 Income Tax (Earnings and Pensions) Act 2003).
The circumstances are:
You may recall that earlier this week Cathy Corns, Corporate Tax Partner at Mercer & Hole wrote an article on the Jones v Garnett case for her SME Blog. Following on from this piece Cathy has submitted an additional blog on the topical "Arctic Systems Ltd" case.
The House of Lords issued their judgement in the case of Jones v Garnett (also known as the “Arctic Systems Ltd” case) on 25 July 2007. To much rejoicing the case was decided in favour of Mr and Mrs Jones. However, the Revenue is a bad loser.
On 26 July a written Ministerial statement was issued by the Exchequer Secretary to the Treasury, announcing the intention to change the law.
Using the standard “the Government is committed to maintaining fairness in the tax system” statement the Government now believes it needs to do something to “ensure that there is greater clarity in the law regarding its position on the tax treatment of income splitting”. Actually, in my opinion, the law is now clear – it may not say what the Revenue wants it to, but that is unfortunate (for them) rather than unclear.
Cathy Corns, Corporate Tax Partner at Mercer & Hole wrote this article for her SME Blog earlier today.
Continue Reading...This all seems to have been going on for so long you may need reminding of what all the fuss is about; so
- Mr and Mrs Jones ran a small IT company of which Mr Jones was the sole director. They each owned one share in the company took a small salary and extracted the majority of their required funds by way of dividend. These, of course, were paid in line with the shareholdings, on a 50:50 basis.
H M Revenue & Customs have announced new advisory fuel rates which can be used by businesses to reclaim VAT on employees mileage allowances for business travel.
The new rates which apply to all journeys on or after 1 August 2007 are as follows:-
Our new edition of Tax Plus is now online for your reading pleasure.
Current articles include:-
and much more can be located
Continue Reading...Hidden away on the HMRC website is a new Business Brief which explains that the new rules will not apply to certain film expenditure.
It seems that the new restrictions still apply to all other partnerships with non active partners. Bearing in mind that this type of relief for film expenditure is due to disappear in a few months is this really a U-Turn?
HMRC have announced further restrictions to the tax relief available for partnership losses. Although applying to all partnerships with non-active partners the new rules are primarily aimed at tax savings devices such as film schemes and technology partnerships.
The announcement on the HMRC website on Friday 2 March 2007 can be found here. This may be an indication that further changes to tackle tax avoidance may be announced in the Budget on 21 March.
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