News

Taskforces and amnesties aid 38% jump during 2012/13, figures show

Supplementary pages

HMRC have made changes to the processes for pension registration and transfers between schemes. The new set up, which is effective from this month, is aimed at deterring pension liberation and safeguarding retirement savings.

The registration process is to move away from a ‘process now, check later’ approach, meaning registration will no longer be confirmed on successful submission of an online form.

Taxpayers risk being misled by RDR1, claims tax barrister

Salaried members of limited liability partnerships (LLPs) will be classed as employees under changes to the taxation of partnerships, HMRC have announced.

The move follows the consultation on proposals for addressing the disguising of the employer/employee relationship through membership of LLPs.

The responses highlighted the problem of disguised employment arising from the interaction of the Alternative Investment Fund Managers Directive (AIFMD) and the existing partnership tax rules on alternative investment fund (AIF) managers who operate as a partnership.

HMRC are in discussions with the commercial sector about how it can help to reduce tax credits error and fraud – which stood at £2.09bn in 2011/12.

The talks follows a short trial earlier this year with data management provider Transactis and sub-contractor Bosch, during which 16,000 cases were reviewed: 5,500 were found to be containing error and fraud, and £20m of potential losses were identified.

The results of the pilot scheme demonstrate the potential for significant benefits through the use of private supplier technology, claimed the Revenue.

Investigations find good practices

Autumn statement

The chancellor of the Exchequer will give his annual autumn statement to parliament on Wednesday 4 December.

Isle of Man

The UK has signed an accord with the Isle of Man to clamp down on those who shelter money offshore. It is the first automatic tax information exchange agreement based on the US Foreign Account Tax Compliance Act to be signed between two parties of which neither are the US.

The annual tax on enveloped dwellings (ATED) has been brought within the disclosure of tax avoidance schemes (DOTAS) regime, the government has announced.

Schemes designed and marketed to avoid paying the ATED must be brought to the attention of HMRC, under the Annual Tax on Enveloped Dwellings Avoidance Schemes (Prescribed Descriptions of Arrangements) Regulations 2013 (SI 2013/2571) and the Tax Avoidance Schemes (Information) (Amendment, etc) Regulations 2013 (SI 2013/2592).

Employers have themselves to blame for the majority of PAYE bills they dispute, according to a report from HMRC.

Chiropodists, psychologists and homeopaths are among the taxpayers to be targeted by the latest HMRC amnesty, as the department offers a time-limited disclosure opportunity in which to bring tax affairs up to date on preferential terms.

The scheme is aimed at heath professionals who offer physical treatments (including physiotherapy, chiropractic, chiropody, osteopathy, and occupational therapy) or alternative medicine (such as homeopathy, acupuncture and reflexology), or practise in areas like psychology, speech therapy, and arts therapy.

HMRC have launched an online tool to help employees check whether or not they need to calculate their annual allowance tax liability, even if they have not received a pension statement.

Pension providers should have recently sent annual allowance statements for 2011/12 and 2012/13 to members who have contributed more than the maximum £50,000 a year to a scheme. The issue of statements was a legislative requirement of FA 2011.