Income Tax

HMRC have published the consultation document Simplifying the National Insurance Processes for the Self-Employed, which outlines ways to reduce the burden on self-employed people, focusing specifically on collecting class 2 National Insurance (NI) through self assessment. They are currently collected through a standalone process using six monthly bills or direct debit.

HMRC move to tackle employers’ real-time difficulties

G Carter (TC2661)

I Johnson (TC2656)

Explaining plans to revamp the National Insurance status of self-employed entertainers

A client who is a UK taxpayer is employed in this country as the representative of an overseas business. The client works on his own initiative from an office in his own home, but how is his income tax liability collected?

The government is consulting on the withdrawal of relief for interest on loans to purchase life annuities, often referred to as home income plans, taken out by people aged 65 or over before 1999, as recommended by the Office for Tax Simplification in its review of pensioner taxation.

P Manduca (TC2648)

How should employees of offshore intermediaries be taxed?

Non-statutory business mileage deductions using the approved mileage allowance payments rates have been withdrawn along with agreements for board and lodging private use adjustments.

They have been replaced by simplified expenses rules as part of easier-to-follow legislation covering income tax for small businesses.

Firms can calculate allowable expenditure on vehicles using a flat rate based on mileage. The method of calculation must continue to be used for as long as the vehicle remains in the business once the rate has been used in relation.

Telfer v Sakellarios, Queen’s Bench Division

GR Solutions Ltd v CRC, Upper Tribunal (Tax and Chancery Chamber)