Tax update week ended 17 September 2010

20th September 2010

Naming and ShamingThe ability to “name and shame” is one of HMRC’s most controversial powers.4 conditions must apply:1. After deliberately evading tax, the individual has suffered at least one penalty.2.The penalties relate to wrongdoing, tax returns and VAT returns for periods after 1 April 2010.3.The underpaid tax is £25,000 or more.4.The individual has not fully co-operated, hence HMRC levied more more

Tax update – week ended 10 September 2010

13th September 2010

NI HolidayThis “holiday” scheme started last Monday (6 September 2010), so HMRC clarified matters. The scheme only applies to:

  • The first 10 employees employed in a business during the first trading year. If an employee leaves in this time, his “place” can’t be taken by another.
  • Earnings paid to employees on or after 6 September 2010, where his/her first year expires more

Tax update – week ended 27 August 2010

3rd September 2010

VAT reclaims in timeA married couple opened a pub in County Durham, April 2004. They submitted VAT returns, paying sales tax (VAT) to the government every 3 months. However, they didn’t realise that they could reclaim the VAT on purchases – up until they de-registered for VAT in March 2006.Somebody pointed out to them that they had lost out on more

Tax update – week ended 20 August 2010

25th August 2010

Update 1. Employers lending cycles to employees The HMRC ordinarily taxes loans of cars, equipment etc. as a "benefit in kind". Essentially the benefit of this loan is considered part of the employee's wages. This is generally subject to income tax (20%/40%) and national insurance both for employers (12.8% national insurance) and employees (11% national insurance)Lending a cycle (and helmet) to more