IR35 roadmap for 2018

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The November Budget announcements suggest that IR35 reform is not scheduled to be introduced in 2018 as many feared it would. However, this does not mean that 2018 still will not be a defining year for changes to tax rules in the private sector. Rumours will continue to circulate about changes to IR35 until the government confirms or rules out… Read more »

Concerns over fewer self-assessment payment methods

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HMRC has recently banned taxpayers from paying their tax using either a credit card or at the Post Office. This move has raised concerns amongst some campaigners. Each year, around 11 million taxpayers complete a self-assessment tax return and the deadline for submitting the forms is 31 January each year. Many of these individuals will have to pay either capital… Read more »

Taxpayers frustrated at HMRC website problems

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Many individuals people put off paying their tax returns until the last minute. However, for those who finally bit the bullet and tried to do their tax return this weeks, they were faced with problems as the website kept crashing. Many of those who logged in and filled in the forms, attempting to beat the end of January deadline, were… Read more »

Top HMRC disputes of 2017

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HMRC has been cracking down on tax avoidance and evasion, and as a result of this, it has been involved in some high-profile investigations and court cases. First was Littlewoods’ VAT overpayment dispute. This legal battle took over a decade to come to completion. The final decision of the Supreme Court was that Littlewoods was not entitled to the £1.25bn… Read more »

Computers cannot replace humans

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With all the news of artificial intelligence (AI) in the media at the moment, it might be tempting to think that humans will soon be replaced by computers. But, in a recent tribunal case, a company had its late filing penalty quashed because the notice had been issued by a machine rather than a person. In the case of Khan… Read more »

HMRC told to heed lessons of RTI

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It is generally accepted that the introduction of the Real Time Information (RTI) system was botched by HMRC, and now a tax charity is calling on HMRC to use the lessons that it learned from the process to improve the Making Tax Digital (MTD) programme. The recommendation has come from a tax charity which claims that a published review of… Read more »

Changing nature of HMRC enquiries

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Formerly, HMRC enquiries used to be conducted by the organisation, which would arrange a date and time to visit a business, arriving on the day with a blank questionnaire. The investigators would review the company’s books, looking for any errors, and would interview the main shareholders and directors. An enquiry would usually be triggered by a sudden rise in expenses… Read more »

Autumn Budget announcements affecting contractors

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The Autumn Budget 2017 was a mixed one for contractors. On the one hand, it seemed that the expansion of IR35 to the private sector has come nearer, whilst on the other, there were no tax hikes. In addition, there is some optimism that the government, with its announcement of a series of discussion and consultation documents, may be more… Read more »

HMRC “deliberate error” penalties up

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Penalties levied by HMRC for deliberate tax return errors have risen by 19 per cent in 2016-17. These penalties are issued to taxpayers who the organisation deems to have deliberately made erroneous tax returns. Last year, the number of “deliberate error” penalties issued was 34,100, which was an increase from the 28,700 issued in 2015 to 2016. The figures come… Read more »

ICAEW criticises proposed contractors’ loan charge

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The Finance Bill 2017 contains proposals to introduce new charges for any outstanding loans from disguised remuneration (DR) schemes. The charges will apply to all DR loans made to traders and employees after 5th April 1999 and those that will be outstanding on 5th April 2019. Anyone who is affected by this proposal will be charged tax at their marginal… Read more »