Beware: Penalties could go up not down!
Penalties can be imposed by HM Revenue and Customs (HMRC) for a variety of offences, such as failing to comply with self-assessment compliance obligations (e.g. failure to file a tax return by the due date). Some penalties are fixed in amount; others are tax-related. Can HMRC decide? In some instances, HMRC may decide on the […]
Let’s not get married!
The UK’s tax system features various reliefs, exemptions and allowances, some of which are seemingly designed to encourage couples to be married (or in a civil partnership). For example, gifts between spouses are normally exempt for inheritance tax (IHT) purposes (although the exemption is subject to a restriction if the recipient spouse is non-UK domiciled). […]
Contractors: Cautionary tales
Business owners who are not directly involved in construction operations might be forgiven for thinking that they can safely ignore the construction industry scheme (CIS) rules, and any case law, information and articles on the subject. However, the CIS regime (in FA 2004, ss 57-77, Schs 11, 12; SI 2005/2045) has a potentially longer reach […]
Say it with…tax breaks
Some professions could be described as ‘sexy’. Unfortunately, tax is not one of them. It would also require a monumental stretch of the imagination to describe tax as ‘romantic’. However, romance can be found in the tax legislation; or to be more precise, tax can be used to fuel romance in a relationship. Of course, […]
Business property relief: Traps to avoid
Many business owners will be aware of business property relief (BPR) for inheritance tax (IHT) purposes, and some might assume that the value of their business interest will be sheltered from IHT by BPR. However, BPR (at the rate of 100% or 50%) is subject to various conditions and restrictions. This article outlines a selection […]
HMRC enquiries: How to keep private records private!
Any taxpayer who submits a tax return can be selected for an HM Revenue and Customs (HMRC) enquiry at random. Those taxpayers unfortunate enough to be selected may find HMRC’s tax return enquiries rather intrusive. For example, HMRC sometimes request a taxpayer’s private records. A controversial topic in enquiries is whether HMRC is entitled to […]
IHT and holiday lettings: A (rare!) business property relief success
Inheritance tax (IHT) relief at the rate of 100% is an attractive proposition. Business property relief (BPR) is available to business owners if certain conditions are satisfied. BPR at the 100% rate applies to ‘relevant business property’ including a business or interest in a business (in certain other cases, BPR is available at 50% instead). […]
IHT and holiday lettings: A (rare!) business property relief success
Inheritance tax (IHT) relief at the rate of 100% is an attractive proposition. Business property relief (BPR) is available to business owners if certain conditions are satisfied. BPR at the 100% rate applies to ‘relevant business property’ including a business or interest in a business (in certain other cases, BPR is available at 50% instead). […]
Tax relief for employment expenses: But don’t get too excited!
Many employees need to use and maintain special clothing for work purposes. They may incur costs of (for example) having their protective work clothing cleaned regularly. It would therefore seem fair and reasonable that such costs should be deductible from their employment income. However, the tax system is not necessarily known for its fairness. Is […]