News

Taskforce focuses on security industry

The next wave of HMRC taskforces has been launched to focus on the private security industry in London and the south-east to counter fraudulent VAT repayment claims;  the construction industry in London; hidden wealth in the Midlands, including people with offshore accounts and those with lifestyles beyond their obvious means through assets from undeclared income; and the hidden economy in the second-hand motor trade in the Midlands.

Another tax amnesty launched by HMRC

The government has announced plans to restrict the use of the compensating adjustments mechanism in the transfer pricing legislation where it generates income tax advantages.

HMRC are aware of two major schemes that exploit the rules. The first arrangement involves large partnerships that employ staff through a separate service company, which the partnership owns.

HMRC have confirmed they will withhold income tax repayments when officials believe a claim that produces the sum constitutes avoidance, and when the department is challenging or considering challenging claims by enquiry.

The Revenue will make an appropriate provisional refund if it agrees a claim does not depend on avoidance. If the department’s view is that the effect of a scheme was to inflate or accelerate a claim to relief artificially, officials will work with taxpayer and agent to make an appropriate provisional repayment to reflect the portion not in dispute.

Supplementary questions aimed at bolstering HMRC poll

RPI

The value of the retail prices index for both June 2013 and July 2013 is 249.7.

Residence form

Form P85 “Leaving the UK – getting your tax right” has been revised to take account of changes in residence rules effective from 6 April 2013.

PAYE

As 22 September is a Sunday, employers need to have cleared funds in HMRC’s bank account by 20 September if they make their PAYE payment electronically.

The government has unveiled proposals for payroll giving that will enable employers to encourage charitable donations more easily and allow organisations faster access to the sums.

HMRC have urged advisers to staple together forms 64-8 relating to the same client, to prevent the documents becoming separated.

HMRC have launched a challenge to arrangements used by contractors and other professionals to mitigate tax by entering into a contract of employment with an offshore employer while providing their services in the UK.

Participants receive a substantial proportion of the fees for their services in payments said to be loans. The Revenue does not agree that the arrangements succeed in avoiding tax.

The HMRC student loan panel is looking for volunteers to attend a group for customer user process improvement sessions that will be held around the country in early October. They will last for between an hour and 90 minutes.

The panel is interested in speaking to employers and agents who handle the deduction of student loans and self assessment taxpayers with a student loan. 

But questions remain over OECD base erosion plan, says expert

BPRA

The contact details for technical review of the business premises renovation allowances legislation, published on 18 July, have been updated.

VAT Notes

The September edition of HMRC’s VAT Notes includes items on notification of vehicle arrivals into the UK, details of 2015 changes to place of supply rules, and machine games duty information.