Items to consider this week
A mistake made in good faith will more likely gain acceptance from the First-tier Tribunal than from HMRC
Advisers can be reassured by the Court of Appeal’s judgment in Mehjoo
Administrators can report transfers of sums and assets from UK-registered pension schemes to qualifying recognised overseas pension schemes (QROPS) using the online service launched in December.
But some schemes, including retirement annuity contracts and executive pension plans that were approved before 6 April 2006, have no pension scheme tax reference code that can be used to gain online access, meaning administrators need to first digitally register each scheme before reporting transfers.
Key dates for your diary
Physiotherapists, chiropodists and other health professionals have only a few days left to tell HMRC about income they have kept secret.
They must reveal details of unpaid tax by 6 April and settle their debts with the taxman, or face the possibility of criminal investigation.
H Mehjoo v Harben Baker (a firm) and Harben Baker Ltd, Court of Appeal
Bedale Golf Club Ltd v CRC, Upper Tribunal (Tax and Chancery Chamber)
The government abolished income tax relief for payment of patent royalties in December 2012 after HMRC found no evidence of any use of the break that was not for the purpose of avoidance.
Despite the action in that instance, the Revenue does not estimate the tax at risk or loss as the result of the abuse of reliefs but the amount is likely to be “significant”, according to the latest report from the National Audit Office (NAO).
The chancellor’s claim to have axed the need for a pension annuity is unimpressive – and familiar
Key admin for you and your colleagues
Views sought on tax reform of defined contribution savings
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