News

HMRC are taking part in a European Union (EU) trial of VAT ruling requests for complex cross-border situations.

Under the test scheme – which is set to run until 31 December – a firm registered for VAT in the UK and planning cross-border transactions to one or more participating member states can ask the Revenue for a ruling.

HMRC have published a breakdown of the number of legal tax-dodging arrangements revealed to the department under the disclosure of tax avoidance schemes (DOTAS) regime in the six months to 30 September 2013.

The figures show 17 reports covering direct tax were made during the most recent period, the smallest number since DOTAS was introduced in 2004 and nearly half of the 32 registered in the previous half-year.

Autumn statement

The chancellor’s autumn statement has been rescheduled to take place on 5 December.

Defaulters

HMRC have published the fourth list of deliberate defaulters who meet the conditions within FA 2009, s 94.

Offshore funds

HMRC’s reporting offshore funds list has been updated to include the funds that have entered the reporting fund regime as at 11 November 2013.

A new service has been launched by HMRC to make matters easier for vulnerable individuals dealing with the tax department.

The deemed consent system for income tax enquiries aims to provide an informal channel for advisers to act on behalf of disable and disadvantaged clients in communications to the taxman

The Italian government announced a purse of €1bn to be spent on VAT repayments to large businesses. The move comes in response to infraction proceedings by European Commission for Italy’s failure to issue rebates due within reasonable time limits imposed by European law.

Firms owed VAT repayments from Italy should now expect to receive the funds, according to KPMG.

HMRC say they are aware of a tax error affecting recipients of disbursement from the Redundancy Payments Office (RPO) but will not make corrections unless asked to do so.

The RPO provides financial settlements to staff members of insolvent employers but does not operate a tax code on the payments, meaning only basic rate tax is deducted and workers often find they have paid tax excessively or erroneously.

HMRC have published draft guidance on the above-the-line credit for large companies for research and development expenditure incurred on or after 1 April 2013, to run alongside the current scheme until it ends on 31 March 2016.

The credit discharges corporation tax that a profit-making company would have to pay, while allowing businesses with no corporation tax liability to receive an immediate benefit either through a cash payment or a reduction of tax or other duties due.

Transparency

The government has confirmed that a Companies House register of company beneficial ownership will be made publicly accessible. It will contain information on individuals with an interest in more than 25% of a company’s shares or voting rights, or who otherwise control the way it is run. The Department for Business Information and Skills will set out further details early next year in its formal response to an earlier discussion paper.

ICAEW member made threats over 18-month period

HMRC have updated their Spotlights page on tax avoidance schemes to draw attention to the department’s recent First-tier Tribunal victory in the LM Ferro Ltd case, which involved an attempt to make a gratuity in the form of restricted shares in another company.

“Government needs to take measures to help rest of UK”

Resubmitted return was not relevant to calculation of tax