Income Tax

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Claiming a construction industry scheme refund can be an overlong process

A client has become very wealthy over many years, but now has little income that is subject to tax. He wishes to make substantial gifts to charity, but is concerned that gift aid will not be of benefit

A client is proposing to transfer a large residential property to his son. The client will continue to live at the property and pay a rent. This should avoid an inheritance tax charge

A pottery collector is expanding and improving his collection. Because of the limited space available, unwanted or inferior examples are sold to make room for more recent acquisitions

By David HJ Cohen; £65; paperback; 209 pages; Bloomsbury Books

HMRC are set to close all open periods of contracting out on taxpayers’ National Insurance (NI) records. The move will be to supply individuals with details of their occupational pension rights when contracting out ends in April 2016.

HMRC have announced new fuel rates for company cars, to apply to all journeys on or after 1 March 2014 until further notice. Employers may use either the previous or new rates for one month from the date of change, and therefore make or require supplementary payments, but are under no obligation to do either. Petrol hybrid cars are treated as petrol cars for this purpose. The amounts can be used for VAT, but employers will need to retain receipts.

Forde and McHugh Ltd v CRC, Supreme Court

A client made payments into a seed enterprise investment scheme and an enterprise investment scheme in 2012/13 and 2013/14. No certificates were received in time for submission of the 2012/13 tax return

Small enterprises such as hairdressers, window cleaners and cab drivers are being urged by HMRC to take advantage of the simpler system of recording income and expenses over the tax year.

Firms with an annual income of £79,000 or less can use the cash basis of accounting for money as it goes in and out of the business, rather than employing traditional method centred on accruals.