Income Tax

HMRC and Scotland’s government have agreed a memorandum of understanding for a Scottish rate of income tax.

The document sets out the arrangements for the implementation of the rate, describing each administration’s respective responsibilities in relation to establishing and operating it.

The Scottish rate will begin from a date to be set by the UK government and is expected to be April 2016. It will be administered by the Revenue as part of the UK-wide income tax system and will apply to non-savings income.

Nap Anglia Ltd (TC2579)

A Bingham (TC2528)

The long-running trial of real-time information ends today, with the new system for reporting PAYE launching tomorrow (6 April) for the vast majority of employers.

The end to the pilot scheme means HMRC will no longer issue their monthly online updates, and “it is no longer appropriate… to retain the dedicated email box as a route for contact for pilot employer queries”.

Builders are seen by HMRC as easy targets, claims accountancy provider

Annual payments subject to ITEPA 2005, s 683, says Revenue

Tax advisers who submit a high volume of income tax refund returns may receive an HMRC letter asking them to sign a memorandum of understanding aimed at reducing the risks attached to such claims.

The document – headed Self Assessment Returns Resulting in a Repayment: Sharing Risk Concerns – claims it “does not constitute any type of formal enquiry or compliance check”.

Murray Group Holdings & others (TC2372)

Employer-supported arrangements to continue alongside

The government’s plans for a third employment status continue to change, with today’s Budget introducing a further tax break.

Workers who sign employee-shareholder contracts will pay no income tax or National Insurance (NI) on the first £2,000 of shares they receive from their employer company, the Treasury announced.

A limited company intends to purchase a dog that will be used for promotional purposes. The animal will be taken home in the evenings and at weekends by one of the directors

An employee is to be made redundant. He is entitled to six months’ notice, but expects to receive pay in lieu of notice of about £16,000. Furthermore, the employer would have paid pension contributions of £4,000 and is willing to pay this to the employee as well