News

The scope of the UK’s patent box has been reduced, after government officials agreed a compromise with German counterparts over the controversial tax break for companies.

The move was made in an effort to advance negotiations on new rules for preferential intellectual property regimes within the G20/OECD base erosion and profit shifting project.

ISA options

The government is consulting on how to implement the inclusion of peer-to-peer loans within individual savings accounts (ISAs). The aim is to increase the choice of investments available to investors and improve competition in the banking sector. Comments should be emailed by 12 December.

A senior tax professional has raised concerns about an HMRC briefing that covers how the accelerated payments regime will be applied to tackling tax avoidance schemes.

Part two of the document explains that ‘pay upfront’ measures will be aimed at avoidance arrangements that include those already defeated in court.

A man who pretended to be a solicitor in an attempt to get a sizable debt quashed for another taxpayer has been jailed for 22 months.

Unemployed Nicholas Moss, who pretended to work for a London-based law group, forged a court document that purported to come from a High Court judge cancelling £19,000 in arrears to HMRC.

He also represented his ‘client’ at Willesden County Court, where a judgment was awarded in favour of the Revenue for the tax debt.

Gap in tax estimated at €177bn

HMRC have overhauled the way in which they recover tax credits overpayments.

Revenue and Customs Brief 40 (2014) explains that claimants who have been overpaid may have their award reduced to repay outstanding debts from previous claims.

Micro-entities

The Revenue has enhanced its online filing software for unrepresented companies with straightforward affairs, to allow micro-entities to file simplified corporation tax accounts – and firms will be able to send basic micro-entity accounts to Companies House from mid-November.

Tax summaries

About 24m people are to receive an annual summary to explain how their income tax and National Insurance contributions have been calculated for the year and how the money was spent by the government.

Tax-debt recovery based on graduated scale

HMRC have published the second set of regulations required to support the promoters of tax avoidance schemes (POTAS) legislation.

The new document defines the type of misconduct, actions and penalties that will be relevant for assessing whether a party is subject to the POTAS rules and liable to a conduct notice.

The notices will last up to two years and require promoters to change their behaviour in relation to the schemes they endorse, according to the Revenue.

And taxman changes policy on snowball cakes

Citizens Advice will provide the face-to-face pension guidance set to be launched next April, the Treasury has announced.

The free service is aimed to help workers understand their options as they approach retirement age, following the introduction of new pensions rules.

Citizens Advice will work with the Pensions Advisory Service, which will deliver guidance over the telephone.

An online offering is also planned by the government, which intends to legislate to underpin the guidance, making imitation of the guidance service a criminal offence.

Property trusts

The information in HMRC’s IHT113 guide on filing and payment dates is incorrect for events arising on or after 6 April. When such a chargeable event arising on property trusts takes place, the date for filing the inheritance tax (IHT) return and paying the tax due has been changed to six months after the end of the month in which the charge arose. The change in the payment date will affect relevant property trusts where the charge to IHT arises between 5 April and 30 September.