Business

The cash basis may not be as simple as its name suggests

HMRC’s approach to goodwill and trade-related properties is a misinterpretation of regulations

Employers using products from one particular software provider have received penalty warning notices from HMRC because they sent their end-of-year information on the wrong type of submission.

The problem affects businesses that:

Hott Joint Carvery (TC2644)

Accelerate deductions by claiming first-year allowances for technology that saves water or energy

Charles Atkinson (TC2606)

Taxpayers making their first return and payment under the new machine games duty are finding it difficult to understand, according to HMRC.

The taxman has also encountered system issues that have confused some taxpayers and made it harder for them to comply.

As a result, the Revenue has decided not to apply penalties for the late submission of first returns. The concession will not apply to any other area.

The department states that taxpayers should ignore the fine if it shows up on their accounts; sanctions for late filing of first returns will be cancelled.

HMRC wish to have a subcontractor’s accounts adjusted so that the income and expenditure exactly matches the construction industry scheme returns

Claims can be made on plant and machinery sales in some circumstance

HMRC have published legislation to allow businesses to comply with due diligence and reporting obligations under the accord between the UK and US governments to improve international tax compliance and implement the US Foreign Account Tax Compliance Act (FATCA).

The International Tax Compliance (United States of America) Regulations 2013 imposes new and substantial burdens on UK firms in identifying American taxpayers, and in reporting information to the Internal Revenue Service (IRS) in the States.

T Daniel (TC2565)

John Kerr Roofing Contractors (TC2564)