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COMPANY VANS WERE MOTOR CARS

HMRC

The Court of Appeal have now ruled on the tax status of certain vehicles provided to employees of Coca Cola. The court has upheld the HMRC view that vans with windows and a second row of seats behind the driver are not goods vehicles but motor cars for benefit in kind purposes. Consequently, the income […]

CERTAIN PROPERTY BUSINESS OWNERS ARE LIABLE TO CLASS 2 NICs

HMRC

Class 2 National Insurance Contributions (NICs) are currently paid at the rate of £3.05 per week by self-employed earners. A person who is liable to Income Tax on the profits arising from the receipt of property rental income will only be a self-employed earner for NICs purposes if the level of activities carried out amounts […]

NUMEROUS FRAUDULENT CJRS CLAIMS IDENTIFIED

HMRC

HMRC’s CJRS fraud reporting portal had received over 2,000 reports of wrongful claims. Examples of such wrongful claims include; Claiming furlough payments for staff who are continuing to work Furloughing staff but asking them to work “voluntarily” on an unpaid basis. Claiming furlough payments for “ghost” employees, and those who left employment before 19 March […]

NOTIFY HMRC OF OVERCLAIMED CJRS “FURLOUGH” GRANTS WITHIN 90 DAYS

HMRC

The calculation of Coronavirus Job Retention Scheme grants has proven to be complex, particularly as HMRC frequently changed the rules and the method of computation. Consequently, many errors have arisen and need to be corrected. The latest Finance Act requires employers to notify HMRC within 90 days where it turns out that they were not […]

RUMOURS OF CGT INCREASES

HMRC, Tax

There has been a lot of speculation in the Press that the Chancellor may introduce radical changes to capital gains tax to start to repay the substantial Government borrowings to support businesses and employees affected by the coronavirus pandemic. It has been suggested that the current £12,300 CGT annual exemption will be reduced and the […]

REPORTING PROPERTY GAINS WITHIN 30 DAYS

HMRC, Tax

Since 6 April 2020 where UK residential property is disposed of, the resulting capital gain needs to be reported and the capital gains tax paid within 30 days of completion of the disposal. There have been a number of teething problems with the new online reporting system and HMRC stated that there would be no […]

HIGH INCOME CHILD BENEFIT CHARGES NOT VALID

HMRC, Tax

A recent tax tribunal has ruled against HMRC who were seeking to raise tax assessments for the High Income Child Benefit Charge (HICBC) for earlier years that had not been reported to HMRC. HICBC is a special tax charge that applies where one member of a couple in receipt of child benefit receives income in […]

INTERACTION WITH VAT FLAT RATE SCHEME

HMRC, VAT

Small businesses with turnover below £150,000 may join the VAT flat rate scheme which makes their VAT accounting much simpler as they merely pay HMRC a percentage of their VAT inclusive turnover. The temporary reduction in the rate of VAT from 20% to 5% reduces the flat rate percentages for affected businesses as set out […]

VAT TREATMENT OF DEPOSITS

HMRC, VAT

It is fairly common, particularly in the summer holidays, to pay a deposit when booking a hotel or self-catering accommodation but how should the deposit be accounted for? HMRC have confirmed that the hotel has the option of charging VAT according to the ‘basic tax point’ (dates of the stay) rather than the ‘actual tax […]

WHAT DOES THE 5% TEMPORARY VAT RATE APPLY TO?

HMRC

The temporary 5% rate applies to the following supplies, but is not an exhaustive list: Catering, including hot takeaway food Accommodation in hotels, guest houses and similar places Tourist attractions such as theme parks, zoos, theatres and cinemas Note that as far as catering is concerned, the 5% rate only applies to food and non-alcoholic […]