News

Accountants criticise government for ignoring OTS

Anti-avoidance guidance

The draft guidance Promoters of Tax Avoidance Schemes covers the new rules that aim to deter the development and use of arrangements by influencing the behaviour of promoters, their intermediaries and clients. Comments should be sent by 31 July via HMRC’s website, or by post to Alan Welsby, Royal House, Prince Gate, 2-6 Homer Road, Solihull B91 3WG.

The Revenue paid £4.6bn in corporation tax refunds to around 286,000 companies in the year to 31 March 2013, according to accountancy UHY Hacker Young.

The firm’s tax head, Roy Maugham, said the figures highlighted the importance for businesses of reviewing corporation tax liabilities, with repayments sometimes taking between 12 and 24 months to organise – although two to three months is typical.

Avoid fines and non-filing generic notification service messages by making a correct final payment submission (FPS), HMRC has advised employers that no longer need their PAYE schemes.

Firms looking to 2014/15 have been told by the Revenue to:

HMRC have started the automated end-of-year PAYE reconciliations for 2013/14. The department expects the process to be completed by mid-September.

Taxpayers who paid too little or too much tax under PAYE for the year will receive a calculation on form P800, showing the details along with notes explaining what the figures mean.

Those who overpaid will in most cases be sent a cheque within 14 working days from the receipt of the P800 calculation.

The European Commission (EC) has opened investigations into whether decisions about corporation tax to be paid by Apple, Starbucks and Fiat complied with European Union (EU) rules on state aid.

The commission has been examining tax practices in several member states, following media reports alleging that some big businesses received significant reductions by way of rulings issued by national tax authorities. Decisions can involve state aid if they provide selective advantages to a specific company or group of companies.

Possibility of unjust enrichment follows West Bridport ruling

 Agency workers 

HMRC have issued guidance on the changes to the treatment of workers supplied through UK-based agencies or other intermediaries.

 Prescriptions

HMRC have published a third consultation document on simplifying the inheritance tax (IHT) treatment of relevant property trust charges.

The document’s proposals aim to prevent taxpayers reducing their IHT liabilities by setting up multiple trusts for their heirs, each with a £325,000 tax-free allowance.

It would be appropriate for the Revenue to allow the taxpayers’ claims for Jelley losses in certain cases, according to a department body for advising on tax dispute policy.

A reverse charge accounting mechanism, known as a domestic reverse charge, for wholesale supplies of gas and electricity is to be introduced in the UK next month.

The charge means taxpayers receiving wholesale supplies of gas or electricity must account on their VAT returns for the tax due – which can be deducted as input tax, meaning no net tax is payable to HMRC, subject to the normal rules for reclaiming VAT.

HMRC could miss prosections target for evasion, warns law firm