Admin

The tax system costs businesses up to £10bn in hidden costs a year, with small and medium-sized enterprises (SMEs) bearing the brunt, according to research by the Association of Accounting Technicians (AAT).

The organisation’s survey of 500 firms found that each SME pays an average of £4,376 in tax compliance costs, just under half the £8,907 paid by larger businesses.

CRC v GMAC UK plc, Upper Tribunal

Dock and Let Ltd (TC4056)

Points to action

Lessons learned from compliance reviews

Charities have been issued with stern government guidance on the right way to take advantage of tax breaks.

The Charity Commission’s document explains that reasonable use of fiscal reliefs and tax planning is necessary and sensible, but urges trustees to have regard to their duty to act prudently in the best interests of their charity and not enter into arrangements that could damage the reputation of the organisation.

HMRC have backtracked on their ambition to temporarily withhold details of PAYE code changes from workers.

Tax admin to think about and do

Is interest still eligible for tax relief after the asset has been scrapped?

The measures so far in Scotland, Northern Ireland and Wales

Why did the government axe entrepreneurs’ relief in relation to incorporation?

Almost one-third of a million taxpayers will receive self assessment (SA) reminders before the end of the month.

HMRC are sending 650,000 emails ahead of the 31 January deadline to people who are yet to file their returns online or pay the tax owed.

The messages follow the launch of the Revenue’s fully digital SA service that provides real-time digital alerts with direct links to returns, guides and tools on GOV.UK. More than 670,000 individuals have already opted to go paperless next year, according to tax officials.