Income Tax

The real-time information system that has been introduced to make operation of the PAYE system more straightforward seems to be causing many headaches for employers and their advisers

HMRC have set up a dedicated team to identify the cause of difficulties for PAYE schemes in reconciling the difference between the tax the department says is due and that which the employer believes is due.

The team is working with schemes through their examples to examine what is causing the discrepancies, with the aim of finding resolutions.

The Revenue hopes the new set-up will form understanding of the issue in greater depth, and lead to steps necessary to prevent the problems arising in future.

Employers are risking problems for their workers by entering 0.00 in the field for annual amount of occupation on the full payment submission (FPS) in cases where no occupational pension is paid, the Revenue has warned.

Healy v CRC, Upper Tribunal (Tax and Chancery Chamber)

Experiences of a practitioner and small business suffering under the weight of real-time information

HMRC have published a consultation on tax-free childcare for working families and additional assistance with childcare for parents through universal credit. Under the scheme to be administered by the Revenue, the government will provide 20% of working families’ childcare costs, subject to an annual limit of £1,200 for each child.

Parents will register with a voucher provider and open an online account. The government will then top up payments into this account at a rate of 20p for every 80p that families pay in, subject to the above limit.

Claygold Property Ltd (TC2717)

Janet Smith Brown (TC2705)

The life tenant of a trust created by his late wife’s will is a higher-rate taxpayer and wishes to assign the income to his new wife, a basic-rate taxpayer

Benedict Manning (TC2666)

Steven Price, John Myers, James Lucas (TC2703)

A client works for the UK civil service and will be going abroad to serve as a diplomat in China. Diplomats are usually exempt from local taxes on a reciprocal basis, but does this extend to family members as well?