News

Almost 1,400 movies have become eligible to claim film tax relief since its inception in January 2007 to buoy UK cinema, according to newly released HMRC figures.

Of 1,390 productions, 1,050 have made 1,900 claims for a total of £1.1bn, with 1,700 claims having so far received £995m between them. The Revenue data shows that 96% of payments were made within six months of claims being received by the taxman.

Payroll giving

HMRC are consulting on draft regulations to reduce payroll giving donation handover time. The new rules in most cases will require payroll giving agents to hand over donations to charities within a maximum of 35, instead of, 60 days. The existing 60-day time limit will apply to money held in circumstances which do not meet the new conditions. The measure will have effect for money received by agents from 6 April 2014.

Latvia

Latvia joined the euro on 1 January 2014.

HMRC plan to recover the amounts paid out in VAT claims made under the terms of Revenue and Customs Brief 11/10, following the Court of Appeal decison in favour of the taxman in CRC v The Rank Group plc in relation to gaming machines including multiplayer terminals.

Users of avoidance schemes will be expected to pay tax upfront under proposals issued by HMRC.

A new consultation document, Tackling Marketed Tax Avoidance, outlines plans to extend accelerated payment of disputed tax to arrangements subject to the disclosure of tax avoidance schemes (DOTAS) regime and to taxpayers being investigated under the general anti-abuse rule (GAAR).

HMRC have produced two documents to assist companies set to see changes to their preparation of financial statements over the coming years.

The papers provide an overview of the tax considerations that arise in a shift from the UK’s current generally accepted accounting principles (GAAP) to new, EU-endorsed standards.

HMRC are planning to ramp up their online solutions through a recruitment drive in the north-east.

The department plans to hire more than 50 specialists to build digital services that will make tax affairs simpler, clearer and faster for people and businesses to manage.

The Revenue intends for staff and technology suppliers to work together in a new centre in the Newcastle area – an upcoming region for digital talent – to identify the needs of taxpayers, test new services with real users, and improve existing offerings.

Interim report plans to patch up “fiscal footwear”

The HMRC information service on tax avoidance arrangements, Spotlights, has added an update on contractor loan schemes in light of the First-tier Tribunal decision in P Boyle (TC3103).

The tribunal dismissed all the arguments put forward by an IT contractor that his contractor loan scheme worked and the money he received was not subject to tax. The judge decided that the money paid over to the taxpayer as loans was “in substance and reality income from his employment” and therefore taxable.

HMRC have launched a blog aimed at improving the way the department works with tax advisers.

The new offering supports the Revenue’s strategy for engaging with tax agents, providing a channel to communicate about:

Real time reports amended

HMRC have made updates to the guidance for employers on reporting PAYE information in real time:

Employers who do not pay their workers the national minimum wage (NMW) will face a greatly increased penalty under stricter regulations expected within the next few weeks.

Non-compliant firms currently face a sanction of all unpaid wages and a fine calculated as 50% of the total underpayment for all employees affected to a maximum of £5,000, which is reduced half if the unpaid wages are settled within 14 days.

The new regime will increase the penalty to 100% of the unpaid wages, with the cap rising to £20,000.

UK taxpayers with hidden assets in the Cayman Islands face scrutiny by HMRC over evasion, tax investigations experts have warned.

The Revenue is issuing letters to encourage people it believes hold bank accounts in the British overseas territory to disclose undeclared income and capital gains.

Sean Wakeman, tax investigations partner at Crowe Clark Whitehill, said,“Account holders are warned that if no response is received within 30 days, a detailed inquiry will be launched that could lead to a criminal investigation.