Income Tax

Tax credit claimants should take extra care when checking their 2012/13 final award notice, to ensure they do not lose their right to challenge overpayments, the Low Incomes Tax Reform Group (LITRG) has urged.

The charity’s call follows the introduction of two changes that will affect people wanting to dispute tax credits overpayments: HMRC will no longer stop recovery of overpayment while they consider a dispute, and claimants now have only three months to dispute an overpayment. Disputes could be made at any time until the time limit was introduced on 6 April.

Higher incomes parent who have received child benefit this year and do not already complete tax returns must register for self assessment by 5 October to avoid penalties in relation to the high income child benefit charge (HICBC), HMRC have warned.

The department plans to write to 2m higher rate taxpayers, including those affected by recent changes to child benefit, reminding them they will need to complete a self assessment return for 2012/13 if:

HMRC have announced new fuel rates for company cars, which will apply to all journeys on or after 1 September 2013 until further notice.

Employers may use either the previous rates or the new ones for one month from the date of change. They may 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 receipts must be retained.

Reasons for disputed liabilities under real-time information

A financial adviser carried on his business as a sole trader before incorporating several years ago. At that time, goodwill was considered personal and was retained by him. Tranches of customers are being sold, but are these personal, corporate or joint disposals and do the sale of income provisions apply?

HMRC have launched an online survey to ascertain how difficult employers and agents are finding the real-time information (RTI) obligation to report PAYE details on or before employees’ payday.

Respondents must have several numbers to hand to complete the poll, which closes on 13 September 2013:

The complex system for reporting and taxing employee benefits and expenses is ripe for an overhaul, according to an interim report from the Office of Tax Simplification (OTS).

The document identifies issues for further study, including the payrolling of benefits, abolishing the £8,500 higher-paid threshold, and smoothing the differences between tax and National Insurance rules.

S McGregor (TC2748)

The Treasury’s controversial new employment status is set to go in to operation at the start of next month.

The employee-shareholder arrangement will see staff members give up a number of workers’ rights from 1 September in exchange for at least £2,000 of tax-friendly shares in their employer’s company.

Finance Act 2013 provides reliefs for the shares, meaning income tax and National Insurance will usually not be chargeable on the first £2,000 of share value received, and there will usually be a capital gains tax exemption for up to £50,000 of shares.

Appeal Commissioners v Bank of Nova Scotia, Privy Council

Mansworth v Jelley enquiries: is there an argument for legitimate expectation?

At the end of term, it is becoming more likely that parents will give presents to the teachers of their children. Some of the presents are quite valauble, and advice is required on whether an income tax or National Insurance contributions liability will arise