Zero-rated, reduced rated and exempt supplies and what our New Government has to say! Zero rated VAT: Goods and services that are zero-rated are still VAT-taxable, but the rate of VAT is 0%. This means that while no VAT is charged to the customer. An example of zero-rated supplies are Children’s clothing’s and their footwear. […]
Navigating VAT on Leased Cars: What Businesses Need to Know When it comes to hiring or leasing a car for business purposes, understanding the intricacies of VAT can make a significant difference in your accounting. One common scenario is a business that leases a car and pays VAT on the charges, but only uses the […]
Lifetime Allowance (LTA) caps your pension savings without extra tax charges, excluding the state pension. Downsides Reduces Retirement Income: Hefty tax charges for exceeding the LTA. Penalizes Savers: Diligent savers may face unexpected penalties. Upsides Promotes Balanced Savings: Encourages diverse retirement planning. Ensures Fairness: Prevents excessively large pensions for higher earners. Abolishing the LTA Tax […]
Neglecting the tax function can be costly for businesses. If HMRC finds an error and loses confidence in a taxpayer’s compliance, it may expand its inquiries into other tax areas, leading to increased taxes, penalties, and wasted resources. This scrutiny can also affect business sales, exposing vendors to price reductions and damaging reputations. To avoid […]
IPSE calls for better HMRC oversight by the government to build trust with the self-employed. Proposals include appointing a minister for HMRC, scrapping off-payroll rules, and increasing the trading allowance to £5,000. CEO Derek Cribb highlights the sector’s potential to boost the economy.
HMRC is updating late payment penalty rules from the Finance Act 2021. The new regulations will let HMRC charge the second late payment penalty if tax isn’t paid within two years. This change stops taxpayers from avoiding the penalty by delaying payment until the end of the two-year period.
Over three quarters of media businesses were challenged by HMRC over R&D claims, according to a survey by Tax Experts. The research found that 40% of firms made at least one claim for R&D tax relief, but only 24% had claims approved without challenge in the past year. A third had claims challenged before approval, […]
The Association of Taxation Technicians (ATT) has revealed that some voluntary class 2 National Insurance contributions are being refunded unexpectedly. Due to delays in processing, payments made via self-assessment after 31 January cannot be accepted by HMRC, resulting in refunds for affected taxpayers.
HMRC has reported that form VAT 484 has been utilised in fraudulent attempts to gain access to business VAT repayments. The department is taking action to address this issue, including writing to businesses to confirm changes made to their details since January 2024. An HMRC spokesperson stated, ‘We are taking action on the small number […]
HMRC facing delays in processing VAT error corrections, aiming for 40 working days turnaround; more complex cases may take longer. Errors from past 4 years must be separately notified if exceeding specific limits. Form VAT652 online submission preferred, paper option still accepted. HMRC Notice 700/45 suggests contacting error correction team if no response within 21 […]
Blog Post Outline: Views sought on new R&D contracting out rules and overseas restrictions Introduction Overview of HMRC’s technical consultation Contracted-out R&D Activity Explanation of contracted-out R&D activity Importance of understanding the new rules Overseas Rule Changes Elimination of the term ‘qualifying overseas expenditure’ Implications of the overseas rule changes Benefits of R&D Tax Reliefs […]
Taxpayers argued Sensations poppadoms were zero-rated due to gram flour, but HMRC saw them as standard-rated, like potato crisps. The tribunal agreed with HMRC, disregarding the product description. Surveys on customer perception were irrelevant. Appeal dismissed. The judge sided with HMRC, considering the product similar to potato crisps in ingredients, packaging, and marketing despite being […]