How to Appeal Against Tax Decisions
Whether you’re a contractor who feels a decision has gone against you on your Self Assessment tax return, or you’re a small to medium-sized (SME) business owner who disagrees with the amount HMRC claim you owe in Corporation Tax, you can launch an appeal against these decisions, and any associated penalties, within thirty days of notification.
Understanding HMRC’s Decision
If your accountant usually handles your tax return you may not initially understand HMRC’s decision, what it relates to, and how you should approach appealing against it. In this situation you should contact your accountant, as they will be able to instantly explain the decision to you, and, if they also believe HMRC to be incorrect in their assessment, make an appeal on your behalf.
In most circumstances you will have to pay your own appeal costs when taking on a tax decision, regardless of the result.
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Four Million UK Residents Regularly Work from Home
The number of home-workers across Britain has reached a new milestone: four million and counting. The number of people who work from home is up 500,000 since 2007, with 62,000 new home-workers being added over the course of the last year alone.
Analysing data freely available from the Office for National Statistics (ONS), the Trades Union Congress (TUC) concluded that not only has there been a (greater than) ten percent rise in individuals working from home since 2007, millions more occasionally work from home; with the majority of those making up this second group being employed workers.
Despite the largest proportion of home-workers being freelancers, employees are becoming increasingly likely to work from home both part- and full-time due to the clear benefits and flexibility this provides them.
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HMRC Raises £23.9bn Additional Tax Revenue
Praised by Exchequer Secretary to the Treasury David Gauke as “successfully meeting” the challenges and ambitious targets to increase its yield, HMRC last week announced record additional tax revenue of £23.9 billion for the year ending March 2014; non-inclusive of tax revenue collected from individuals and corporations who paid their taxes on time.
This record figure comes as a result of HMRC cracking down on tax avoiders to ensure that those taxpayers who do pay what they owe on time, every time, don’t lose out to those who persist in not doing so. This is seen as part of a longer-term plan to raise £100 billion in additional tax revenue between May 2010 and March 2015.
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Increase in Upfront Payments for Tax Avoiders
The government has in recent weeks announced plans to demand any tax owed upfront by users of tax avoidance schemes ahead of HMRC taking the necessary steps to investigate, and ultimately; challenge, the tax owed in the courts.
This hasn’t come as a shock to observers, with Chancellor of the Exchequer George Osborne touching upon these plans moving forwards as part of his Autumn Statement in December of last year (2013).
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HMRC Tax Enquiries | Section 9A Notices
In line with the law, HMRC are entitled to investigate personal tax returns under Section 9A of the tax management act, with notice being issued within twelve months of the return under investigation being filed.
Your written notice of the investigation into your tax return will quote Section 9A, with HMRC themselves indicating that they would either like to undertake a relatively routine enquiry, or that they would like to investigate very specific points regarding your return.
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Child Trust Funds to Junior ISA Transfer from 2015
It has been announced that the government is due to allow savings to be transferred from Child Trust Funds to Junior ISA from April 2015. This announcement has been expected for some time and speaking about the move, Chancellor of the Exchequer George Osborne said:
"The Government supports hardworking families who want to save for their children. So I’m delighted that, as a result of these changes, over 6 million children who currently have savings in a Child Trust Fund will be able to benefit from better returns and lower charges on those savings in the future."
Who Needs to Submit a Self Assessment Tax Return?
The deadline of 31 January is fast approaching and you may be finding yourself pressurised by how little time is left to submit your self assessment tax return.
Or you may well be wondering whether you actually need to complete a return at all.
If you have been sent a tax return or a notice to file, then you will need to take action, even if you don't think you meet the criteria.
Disguised Employment Relationships via LLPs
Defining disguised employment as: a limited liability partnership (LLP) member who works for the LLP on terms that are tantamount to employment; Chancellor of the Exchequer George Osborne announced during Budget 2013 that the government was due to consult on a number of changes to the tax rules on partnerships, including the act of disguising employment relationships through LLPs.
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New Tax Rules for Mixed Member Partnerships
Due to perceived tax avoidance involving individuals in mixed member partnerships, as part of his Autumn Statement delivered in front of parliament early last month Chancellor of the Exchequer George Osborne outlined new legislation to be placed into effect from April 2014, set forward to tax the profit split in these partnerships more evenly.
Speaking via the Autumn Statement itself, George Osborne states that, "the government remains committed to ensuring that those with the most pay the most," which includes , "...acting to prevent large professional partnerships and wealthy individuals concentrated in private equity from abusing the rules on compensating adjustments in the transfer pricing code."
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Capital Gains on UK Property for Non-Residents
In his Autumn Statement, delivered to parliament early last month, Chancellor of the Exchequer George Osborne touched upon legislation, due to come into effect from April 2015, requiring non-UK residents to pay UK Capital Gains Tax (CGT) on sales of any UK residential properties – regardless of their sale value.
Though the main features surrounding the likely structure of this Capital Gains Tax have been revealed, the full details regarding this move have yet to be discussed, with a consultation on how the legislation can best be introduced set to be published early this year, once HMRC have been given a chance to look over the suggested new features.
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