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Government contracts
HMRC and Cabinet Office have undertaken the review of the tax and procurement policy that came into effect on 1 April. The review explored whether the policy is having the intended effect of encouraging tax compliance from government suppliers. It found that of the 65 bids applying for central government contracts of £5m or more, one bidder failed the overriding mandatory procurement test.
Government contracts
HMRC and Cabinet Office have undertaken the review of the tax and procurement policy that came into effect on 1 April. The review explored whether the policy is having the intended effect of encouraging tax compliance from government suppliers. It found that of the 65 bids applying for central government contracts of £5m or more, one bidder failed the overriding mandatory procurement test.
Employee shareholder shares
HMRC have provided the following information in response to a freedom of information request from Taxation. The question concerned the number of applications to Shares and Assets Valuation (SAV) for share valuations in respect of FA 2013, Sch 23 (employee shareholder shares). The Revenue replied that, up to 14 July 2014, SAV received 210 requests to check values submitted for the purposes of Sch 23. Of these:
- the department has agreed a change in value on 27 valuations;
- has accepted 159 valuations as returned; and
- currently has 24 open valuations under consideration.
Toolkits
HMRC have updated and published the small profits rate and marginal relief toolkit. Nineteen out of 20 toolkits have now been refreshed and include the new checklist functionality to add notes, save and print client information.
RPI
The value of the retail price index for July is 256.0.
Short-term visitors
The wording of the agreement for short-term business visitors has been updated by HMRC. Existing users should use the new version without signing new agreements.
Property taskforce
HMRC have launched a taskforce targeting people in the southwest and south Wales who have failed to disclose income from property. The taskforce will use intelligence from the Valuation Office Agency and is expected to recover £5m.
Penalty letter
HMRC have incorrectly sent an interim penalty warning letter to a few employers that have submitted their P11D(b) for tax year 2013/14. Most of the letters that have been issued inappropriately relate to employers who have changed their trading name recently. If an employer has received a warning letter and has successfully filed its P11D(b), it does not need to take any further action. The department apologises for the inconvenience caused. All of the records affected will be updated and a penalty will not be charged.
UPDATE, 10 Sep 2014: taskforce areas changed to reflect new HMRC information
I think you'll find it is the South West and South Wales that the new taskforce is targeting!
James Bailey
Tax Partner, Roinson Reed Layton, Truro (in the South West!)