Category: News

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 […]

Shona Robison announced Scotland’s 2024-25 Budget on Dec 19, 2023. Key tax changes include a new 45% rate for income between £75,000 and £125,140, and a 48% top rate for income over £125,140 starting April 6, 2024. Other rates and property taxes remain mostly unchanged.

HMRC’s handling of research and development (R&D) tax relief compliance continues to result in valid claims being rejected says the Chartered Institute of Taxation. The institute has written again to HMRC about the issue following an exchange of letters over the summer. It welcomes HMRC’s acknowledgement that its handling of some R&D claims has not […]

HMRC conducted surprise visits at 24 eateries in Edinburgh, London, St Helens, and Stoke to combat electronic till fraud. Some restaurants use electronic sales suppression tools to alter records and evade taxes. HMRC is urging those involved in these tools to disclose voluntarily to reduce penalties. They’ve received over 50 disclosures since May 2023. Penalties […]

48 countries, including the UK, have agreed on the Crypto-Asset Reporting Framework (CARF), an OECD tax transparency standard. CARF mandates crypto platforms to share taxpayer information with tax authorities, aiming to combat tax evasion facilitated by the crypto market. Estimated tax non-compliance on crypto holdings is 55-95%. CARF, starting in 2027, builds on the successful […]

Chancellor allocates £163m to boost HMRC’s debt team, aiming to recover £4.67bn in unpaid tax over six years. Funds may enhance enforcement, leverage advanced tech for tax evasion detection, and address legal, ethical, and public perception challenges in debt collection.

HMRC is targeting taxpayers who incorporated their property business in 2017-18 and claimed full incorporation relief, reporting no capital gains tax. The CIOT reports a letter campaign urging taxpayers to review their relief calculation. If unsure, they’re advised to seek professional advice. Taxpayers must disclose errors via a dedicated email or confirm correctness within 30 […]

Taxpayers building their own home can now digitally submit VAT refund claims for DIY housebuilding, with the option effective from 5 December 2023. The time limit for claims will extend from three to six months after completing the build. This digital process aims to streamline administration for both HMRC and claimants, while the existing paper-based […]

In the UK, directors may be held personally liable for company penalties if they fail to fulfil their legal and fiduciary duties. This can happen if HMRC can prove that the director has deliberately concealed the facts and submitted incorrect data to HMRC. A recent court case has established similar facts, and the taxpayer appeal […]