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 […]
In 2021-22, investment in Venture Capital Trusts (VCTs) eligible for income tax relief surged by 61%, reaching £1,040m. The number of investors claiming tax relief also rose by 32% to 25,800. Most investors typically contribute under £50,000, with an average investment of £40,000. However, HMRC deferred the publication of 2022-23 figures to May 2024, citing […]
From 17 January 2024, those applying for probate in England and Wales no longer need to complete an IHT421 probate summary to submit with their IHT400. Instead, the letter which HMRC sends confirming receipt and processing of the form IHT400 will provide a unique code and the details of the estate values which will be […]
From 8 March 2024, HMRC is making changes to the way paternity leave and pay can be claimed and taken, to make it more flexible. The changes will: allow leave to be taken in non-consecutive blocks allow leave and pay to be taken at any point in the first year after the birth or adoption; […]
HMRC received 4,757 self-assessment tax returns on Christmas Day. This compares with 3,275 filed on the same day in 2022. The peak time for filing was between 12 noon and 1pm when 402 returns were received. A further 12,136 taxpayers submitted their returns on Boxing Day. The figures for New Year’s Eve and New Year’s […]
In 2024, despite lower National Insurance rates, freezing income tax and allowances will likely cause a net tax increase, says the Institute for Fiscal Studies. Those earning around £35,000 may gain £130 from the National Insurance cut but lose due to frozen thresholds. Higher earners benefit more, while those under £29,000 may lose out.
A new policy paper on the additional buildings and technologies that will benefit from VAT relief for the installation of energy-saving materials has been published. From 1 February 2024, relief will be extended to installations of energy-saving materials in buildings used solely for relevant charitable purposes. It will also cover water-source heat pumps, electrical batteries […]
HMRC received 4,757 self-assessment tax returns on Christmas Day. This compares with 3,275 filed on the same day in 2022. The peak time for filing was between 12 noon and 1pm when 402 returns were received. A further 12,136 taxpayers submitted their returns on Boxing Day. The figures for New Year’s Eve and New Year’s […]
In 2020, ten companies, all with a common director who was a chartered accountant (AD), had their claims for seed enterprise investment scheme (SEIS) relief denied by HMRC. The refusal was based on three main grounds for each company: failure to meet the risk-to-capital condition, the trading condition, and engagement in disqualifying arrangements. In the […]
The Chartered Institute of Taxation (CIOT) criticizes HMRC’s handling of research and development (R&D) tax relief compliance. Despite HMRC’s acknowledgment of shortcomings and efforts to improve, the CIOT states that valid claims are still being rejected. The CIOT urges HMRC to decrease its compliance approach until caseworkers are adequately trained in R&D matters to avoid […]