Income Tax

A dilapidated property was purchased for a very small amount in comparison with its vacant possession value. However, after the construction of a new dwelling, the vendor will be allowed to live in the new property for the rest of their life

HMRC are set to introduce a series of new notifications aimed at helping employers manage their PAYE affairs and avoid penalties. Four types of generic messages will be sent to employers:

L A Davidson (TC 2771)

S Kutcha; RA Cowen & Partners Ltd (TC2769)

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

What are the Class 1 NIC implications for the UK employee of a French company?

Two proposed reliefs to encourage employee-owned companies

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 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. 

P Tindale (TC2749)