Law and regulation

Tax / Q&A: principal private residence (PPR) tax liability

When a taxpayer owns more than one property it can make sense to apply for principal private residence (PPR) with HMRC if the ownership falls within the two-year time limit. Angela Robson, tax consultant at Croner Taxwise considers the timing issues

Tax / HMRC clarifies VAT rules on domestic service charges for landlords

HMRC has published updated guidance for property management companies and others clarifying the VAT exemption for domestic service charges and what to do if it has been wrongly applied

Tax / Entrepreneurs’ relief and the equity dilution trap

Entrepreneurs’ relief (ER) can easily be lost due to the dilutive effect of a subsequent share issue – but help is at hand, explains Peter Rayney FCA, CTA (Fellow), TEP

Tax / House of Lords call for evidence on extent of HMRC powers

The House of Lords has issued a two-week call for evidence into the extension of HMRC powers as part of government plans for Making Tax Digital set out in the draft Finance Bill 2018

Tax / PAYE and the tax status of platform workers

The confusion surrounding the tax status of platform workers has led to the Office of Tax Simplification (OTS) proposing significant changes to bring them their status into line with PAYE, says Lee Hamilton, partner at Blick Rothenberg

Tax / Tax avoidance blocks celebrities from honours

People in the public eye and other prominent figures who are believed to be participants in tax avoidance schemes are being blocked from receiving public honours if they are named on a list maintained by HMRC, according to reports

Tax / HMRC updates VAT cash accounting guidance

HMRC has updated its guidance on how the VAT cash accounting scheme works, to provide information on how businesses should account for VAT if they leave the scheme voluntarily, or if their turnover exceeds the ceiling

Tax / VAT claims: HMRC may require additional security

People with a history of poor compliance or in unusual circumstances may be required to give extra security to HMRC when making VAT claims, says Stan Dencher, specialist tax writer at Croner-I

Tax / HMRC makes £343K payments to tax informants

HMRC paid informants more than £343,000 last year for providing information on potential tax evasion, down from a peak of £605,000 in 2015, but still a potential ethical challenge according to City law firm RPC

Tax / HMRC issues letters warning of overseas crackdown

As part of HMRC’s ongoing crackdown on undeclared foreign income, thousands of taxpayers are receiving letters warning them to disclose information by 30 September or face penalties

Tax / HMRC clarifies higher SDLT rules for partnerships and companies

HMRC has updated its guidance on higher rates of stamp duty land tax (SDLT) when buying an additional residential property to clarify how the rules affect companies and partnerships

Tax / Profit fragmentation rules set for overhaul

As the government rapidly finalises new rules on profit fragmentation, Lindsey Wicks, tax writer at Croner-I Tax & Accounting, considers the significance of the proposals, particularly the notification requirement which could net thousands of high net worth individuals and business owners

Tax / Requirement to correct (RTC): the final countdown for taxpayers

As the deadline for requirement to correct notifications for offshore income and assets approaches, Lucy Brennan, partner at Saffrey Champness, examines the compliance issues before new tax penalties bite from 30 September

Tax / Pension savers should keep within annual allowance to avoid tax bill

HMRC has issued guidance for pension savers on use of the annual allowance and clarifying rules on carrying forward unused allowances, particularly where scheme members are planning to use 2015/16 split allowances or have withdrawn money from pensions

Tax / ICAEW flags up inaccuracies in PAYE tax calculations

ICAEW is warning of early reports of issues with HMRC’s calculations of under or over payments as part of the commenced the annual reconciliation of taxpayers’ PAYE records for 2017/18