Tax Return Estimates – Careless Or Deliberate?
The use of an estimated figure may sometimes be necessary when preparing a tax return. For example, records of a particular source of income may have been lost, and it might not be possible to obtain the relevant information from third parties. Is it accurate? HM Revenue and Customs (HMRC) acknowledges that taxpayers will occasionally […]
Tax Return Penalties: HMRC’s Fatal Flaw
Everyone makes mistakes. Fortunately, HM Revenue and Customs (HMRC) has the power to suspend a penalty for a ‘careless’ error in a tax return (FA 2007, Sch 24, para 14). HMRC officers are instructed to consider the suspension of every penalty for a careless error (see HMRC’s Compliance Handbook manual at CH83131). Suspending penalties However, […]
Tax Return Penalties: HMRC’s Fatal Flaw
Everyone makes mistakes. Fortunately, HM Revenue and Customs (HMRC) has the power to suspend a penalty for a ‘careless’ error in a tax return (FA 2007, Sch 24, para 14). HMRC officers are instructed to consider the suspension of every penalty for a careless error (see HMRC’s Compliance Handbook manual at CH83131). Suspending penalties However, […]
Company Owners – Get The Formalities Right!
Small and family company owners are generally very busy trying to build successful businesses. Formalities of operating and administering the company can easily be overlooked. However, aside from any adverse company law implications, this can have unfortunate tax consequences. For example, if a small owner-managed trading company proves to be unsuccessful, the value of its […]
Property Into Trust – No Turning Back?
The tax implications of transactions are sometimes overlooked; or perhaps there may have been a misunderstanding about the tax implications. For example, an individual may transfer a property into a discretionary trust, without appreciating that the gift was an immediately chargeable transfer for inheritance tax (IHT) purposes, triggering an unexpected tax bill. HM Revenue and […]