News

HMRC have clarified their position on the new intermediary reporting requirements for umbrella company workers, following enquiries from the Association of Professional Staffing Companies (APSCo).

The taxman’s system requires intermediaries to select from a list the reason why PAYE has not been applied. There are six categories:

A. Self-employed
B. Partnership
C. Limited liability partnership
D. Limited company
E. Non-UK engagement
F. Another party operated PAYE on the worker’s payments

The amount of tax relief claimed by charities grew to £3.31bn in 2014/15, from £3.07bn in 2013/14, according to latest figures from HMRC.

The total amount comprised £1.64bn in business rates relief, £1.2bn from gift aid, £300m in VAT breaks, and £170m worth of stamp duty land tax relief.

The Revenue’s numbers, which are provisional, indicate that reliefs for individuals on gifts to charities increased by £100m to £1.2bn, with rises in inheritance tax relief, higher-rate breaks on gift aid and covenants, and relief on gifts and shares.

Tax receipts

Total tax receipts for March 2015 showed a considerable increase on those for the equivalent month last year.

FTSE 100

The average effective rate of tax paid reported by FTSE 100 companies dropped to 23.1% of profits in 2014 from 25.9% the year before, according to UHY Hacker Young.

FATCA

The Foreign Account Tax Compliance Act registration guidance has been amended to reflect that there is no longer a requirement to submit nil returns.

HMRC have curbed their use of private debt-collectors by half, according UHY Hacker Young.

Research by the accountancy group shows the Revenue spent £6.8m on retrieving money through third-parties in 2014, compared with a record £14.8m in 2013.

“Debt collection agencies are rarely the most appropriate way for HMRC to collect unpaid taxes,” said Mark Giddens, head of UHY Hacker Young London’s private client department

HMRC have published guidance to explain the changes to enterprise investment scheme (EIS) procedures announced in the Budget.

The new measures affect the processing of advance assurance requests and forms EIS1 compliance statements in respect of investments made on or after 6 April 2015. The Revenue will no longer process such requests in respect of companies that:

HMRC greatly underestimated the impact of European Union tax rules for digital services, according to a study by Enterprise Nation, a membership group for start-up businesses.

First-tier Tribunal

As a result of the centralisation of all First-tier Tribunal (Tax Chamber) administrative processes into one office in January 2015, there is only one email address for users: taxappeals@hmcts.gsi.gov.uk. All other addresses have been closed.

P9D

The 2015/16 version of the end-of-year expenses and benefits form (P9D) is now available.

The Pensions Regulator has launched step-by-step guide to help small firms prepare for automatic enrolment.

The online service, which has been created for employers with up to 50 employees, explains how to complete key tasks including providing a point of contact for the regulator, checking who needs to be enrolled, and creating a plan of action.

HMRC have been criticised for failing to publish guidance on a VAT measure that affects direct mail sent by charities.

The Revenue ruled last summer that the printing and delivery of charity mail packs should not be zero rated – which led to complaints and confusion in the charity and printing sectors, forcing the department to accept that its guidance was unclear.

New digital services

New features of HMRC’s digital tax platform have gone live, and include Your Tax Account, a homepage that summarising everything in one place, including what a business owes and when it needs to be paid.

Two changes to the Foreign Account Tax Compliance Act (FATCA) reporting criteria have been unveiled ahead of the 31 May return deadline.

The first update means UK financial institutions are no longer required to file nil returns – although such a document will still be necessary to make an election where the institution is in a nil position through applying the de minimis $50,000 or $250,000 threshold on pre-existing accounts.

People who decide to take advantage of the new pensions flexibility should considering the tax credit consequences, the Low Incomes Tax Reform Group has advised.

Those who withdraw money from their retirement pot from the age of 55 should consider more than just the effect on their income tax liability, according to the charity’s technical director, Robin Williamson