Non-Resident Landlords – UK Tax Update
Non-Resident Landlords – A UK Tax Update In the face of continuing budgetary pressure on the UK Treasury, HM Revenue & Customs (HMRC) is continuing its drive to collect the right amount of tax owed by non-residents on UK property letting income. Income tax payable on UK property income If you are a non-resident of […]
Read moreRemittance Basis Charge increase for Non Doms
Remittance Basis Charge Increase for Non-Domiciled The Remittance Basis Charge (RBC) is an annual tax charge paid by non-domiciled individuals who wish to continue claiming the remittance basis of taxation once they have been UK tax resident for a number of years. By claiming the remittance basis, non-UK sources of income/gain are only liable to […]
Read moreSelf Assessment Penalties for Tax Year Ended 5 April 2014
Self Assessment Penalties for Tax Year Ended 5 April 2014 Self-assessment tax returns (form SA100) for the year ended 5 April 2014 need to be submitted to H M Revenue & Customs (HMRC) no later 31 January 2015. The returns will need to be filed electronically as the date for submitting returns in paper copy […]
Read moreHMRC Task Force Targets South West Property Owners
HMRC Task Force Targets South West Property Owners HM Revenue & Customs (HMRC) is turning its attention to those in the south-west of England and south Wales who sell and/or rent out properties. The HMRC task force will use data from the Valuation Office Agency (an executive agency of HMRC) to target tax dodgers and […]
Read moreRemittance Basis UK Tax Return Filing for “Non-Doms”
Remittance Basis UK Tax Return Filing for “Non-Doms” The “remittance basis” of taxation is a special method of filing UK tax returns that is only open to non-domiciled individuals, or to “non-doms” as they are often referred to. UK Tax Return Filing for “Non-Doms” UK domiciled individuals have to file their UK tax returns on […]
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Tax on Lump Sum Payments from Foreign Pensions
The tax legislation regarding the UK tax treatment of payments of lump sums from foreign pensions and schemes relating to service have changed. Read about the changes from 6 April 2011.
Top 12 Year End Tax Planning Tips
Top 12 Year End Tax Planning Tips for 2014 With the end of the 2013-14 UK tax year (5 April) looming in to view and the UK Budget scheduled for 19 March, it is time to consider various year end planning that might make a difference in reducing your tax liabilities. Year End Tax Planning […]
Read moreProposed Changes to the Taxation of Dual Contracts
Proposed Changes to the Taxation of Dual Contracts Following the announcement in December’s Autumn Statement, the government has now published the draft legislation aimed at counteracting what it perceives as being the artificial use of dual contracts by non-domiciles (“non-doms”). The proposed new rules are aimed at preventing contrived arrangements by a small number of […]
Read moreOsborne delivers UK Autumn Statement
Osborne Delivers UK Autumn Statement The Chancellor, George Osborne, delivered his Autumn Statement on Thursday 5 December. The main highlights are as follows: From 6 April 2015 onwards, capital gains made by non-residents on the sale of residential UK property will be liable to UK capital gains tax (CGT). This changes the principle that has […]
Read moreRemittance basis UK tax return filing for “non-doms”
Remittance Basis UK Tax Return Filing For “Non-Domiciled” People The remittance basis of taxation is a special method of filing UK tax returns that is only open to non-domiciled individuals, or to “non-doms” as they are often referred to. UK domiciled individuals have to file their UK tax returns on the “arising basis”, reporting world-wide […]
Read moreHMRC Taskforce Targets South and South East
HMRC (HM Revenue & Customs) is ratcheting up its successful taskforce campaign by aiming at individuals and business in the South and South East of England that hide their wealth from the taxman.
Swiss assets and accounts – HMRC letters
Swiss Assets and Accounts – HMRC Letters HM Revenue & Customs (HMRC) has started issuing letters to those UK resident individuals who have opted not to keep their Swiss investments secret, but to have the details disclosed to HMRC via the Swiss authorities. In doing this, the individuals avoid withholding tax on the Swiss assets […]
Read moreCommonwealth Games – non-resident tax exemption
Commonwealth Games – Non-Resident Tax Exemption HM Revenue & Customs (HMRC) has a special team that monitors the tax affairs of sports people and entertainers who visit the UK to perform. Controversy has arisen in the past because stars such like Usain Bolt have avoided competing in the UK, as the UK seeks to tax […]
Read moreNon-Resident Landords
Non-Resident Landords Individuals that are UK tax residents and domiciled in the UK pay tax on their world-wide income and capital gains. (If you are UK tax resident but non-domiciled, you may be able avoid UK tax on your non-UK sources of income and gains if they are not remitted (brought) to the UK, although […]
Read moreHMRC Self Assessment Catch Up Opportunity
HMRC Self Assessment Tax Returns Catch Up Opportunity If you are late in submitting Self Assessment Tax Returns and worried about the implications of not having filed on time, HM Revenue & Customs (HMRC) are running a new disclosure campaign that might be of interest to you. If you come forward and file your Tax […]
Read moreInheritance Tax – couples with “mixed” domiciles
Inheritance Tax for Couples with “Mixed” Domiciles If you are non-domiciled, your UK tax affairs can be complex from many perspectives. One area where being non-domiciled could have been a distinct disadvantage in the past, was where a UK domiciled person gifted assets to their non-domiciled spouse/civil partner or left them assets on death. UK Inheritance […]
Read moreUK tax residents – beware of US LLCs!
UK Tax Residents – Beware of US LLCs! Here at Tax Innovations, we often get new clients who own business or personal financial interests outside the UK. For UK domiciled and UK resident individuals who file their UK tax returns on the “arising basis” i.e. who need to report world-wide income and gains, you would […]
Read moreHMRC admit PAYE code problems
HM Revenue & Customs have admitted that thousands of employees have been issued with incorrect PAYE code numbers as a result of Real Time Information.
HMRC P800 Tax Calculations for 2012-13
HMRC P800 Tax Calculations for 2012-13 HM Revenue & Customs (HMRC) have started the automated end of year process for the 2012-13 tax year in which they issue automatic P800 tax calculations to reconcile the PAYE affairs of taxpayers who in theory have simple affairs. Tax Refunds and Further Tax HMRC estimate that about 3.5 million […]
Read moreUpdate on HMRC offshore disclosure facilities
Update on HMRC Offshore Disclosure Facilities Individuals holding offshore assets over past years in Switzerland and Liechtenstein have various options for disclosing undeclared UK tax liabilities under either the UK/Swiss Tax Agreement or the Liechtenstein Disclosure Facility (LDF). Both these routes have proved lucrative for HM Revenue & Customs (HMRC), which has seen the UK […]
Read moreHow does the UK Statutory Residence Test (SRT) impact you?
How does the UK Statutory Residence Test (SRT) impact you? From 6 April 2013 there are a new set of rules that will determine your UK tax residence status, which in turn will decide how your income and capital gains are taxed in the UK. The old rules (click here for a link) were a recipe for […]
Read morePenalties for Late Tax Returns
Penalties for Late Tax Returns Swingeing HM Revenue & Customs penalties kick in shortly for those individuals that have not yet filed their 2011-12 Self-Assessment Tax Returns. Self-Assessment Tax Returns Anyone whose 2011-12 Self Assessment Tax Return is more than three months late (i.e. not filed by 30 April 2013) will now be charged a […]
Read moreHMRC targets the wealthy
High Net Worth Individuals: HMRC Targets The Wealthy Figures released by HM Revenue & Customs (HMRC) have confirmed that the taxman is continuing to have success from enquiring into the tax return affairs of the UK’s richest, otherwise known as High Net Worth Individuals (HNWIs). HNWIs come from all walks of life and amongst others […]
Read moreTop 12 Year End Tax Planning Tips
Top 12 Year End Tax Planning Tips for 2013 With the end of the UK tax year (5 April) looming in to view and the UK Budget set for 20 March, it is time to consider various year end planning that might make a difference in reducing your tax liabilities. Issues to consider with Year […]
Read moreReviewing Offshore Expat Bank Accounts (NOR Tax Status)
Reviewing Offshore Expat Bank Accounts For NOR Individuals Many individuals with “Not Ordinarily Resident” (NOR) UK tax status, that have come to work in the UK temporarily, open offshore bank accounts outside the UK to take advantage of rules which exclude earnings from non-UK duties from being taxable in the UK (often known as “Overseas […]
Read moreThe UK Statutory Residence Test is coming!
The UK Statutory Residence Test is Coming! With effect from 6 April 2013, your UK tax residence status will be determined using a new statutory test. These new rules replace a tangled web of guidelines, concessions, practices (and the odd bit of law!) which dictated how tax residence was previously determined. If you are currently […]
Read moreUK and Isle of Man agree to share offshore bank account information
UK and Isle of Man agree to share offshore bank account information The UK Government announced on 19 February that it has agreed with the Isle of Man that it will automatically receive information on offshore bank accounts and investments held in the Isle of Man by UK taxpayers. This “automatic exchange” of information between […]
Read more2013 March Budget Summary
The Chancellor made his Budget Statement on 20 March 2013 and announced Personal Tax, Employment Tax, Company Tax and Expat Tax.
Autumn Statement – Pension Update
Autumn Statement 2012 – Pension Update The Chancellor delivered his Autumn Statement on 5 December 2012 and announced the following headline measures relating to pensions: The Annual Allowance (“AA”) is to be reduced to £40,000 (from the 2014/15 year onwards). The Lifetime Allowance (“LTA”) is to be reduced to £1.25m (from the 2014/15 year onwards). […]
Read moreUK Statutory Residence Test – Update 2
UK Statutory Residence Test – Update Draft legislation has been issued bringing the long awaited Statutory Residence Test (SRT) a step closer. After 18 months of consultation the draft law has not altered much from the previous proposed version of the rules but one welcome relaxation is that individuals claiming to be non-resident by virtue […]
Read moreGovernment considers pension tax relief options
Government Considers Pension Tax Relief Options Speculation is mounting that George Osborne may target the “better off” and reduce the amount of tax relief available on UK pension contributions, possibly from the date the Autumn Statement is made. An article on MoneyMarketing.co.uk provides more detail on this speculation. Pension Tax Currently, it is possible to make […]
Read moreHMRC targets South East rental property businesses
HMRC Targets South East Rental Property Businesses HM Revenue & Customs (HMRC) has since May 2011 been using various “task forces” to target perceived tax evasion amongst certain trades, sector and locations. The latest task force teams to be launched by HMRC will home in on those not paying the right amount of tax in […]
Read moreHMRC holds HSBC Jersey Bank Accounts list
HMRC Holds HSBC Jersey Bank Accounts List Breaking news reported in the Daily Telegraph suggests that a list of over 4,300 people residing in the UK holding almost £700M in HSBC offshore accounts has been provided to HM Revenue & Customs (HMRC). The list, apparently furnished by a “whistle blower”, is said to include the […]
Read moreAre you a Non-Resident Landlord?
Are you a Non-Resident Landlord? If you are UK tax resident but non-domiciled, you may be able avoid UK tax on your non-UK sources of income and gains if they are not remitted (brought) to the UK, although specialist advice is recommended in this area due to the complexities in the UK tax law. Individuals […]
Read moreIR35 Personal Service Companies
IR35 Personal Service Companies The House of Commons Public Accounts Committee has reported on the use of personal service companies and found that despite their widespread use in the BBC and other public sector organisations, HM Revenue & Customs (HMRC) has reduced its enquiries into these types of arrangements. It is ironic that HMRC’s efforts […]
Read moreLiechtenstein Disclosure Facility Versus UK-Swiss Tax Agreement
Liechtenstein Disclosure Facility Versus UK-Swiss Tax Agreement The UK/Swiss tax agreement signed on 6 October 2011 is expected to come into effect on 1 January 2013. This will leave Swiss bank and investment account holders that have not disclosed details to HM Revenue & Customs (HMRC) with a decision to make by May 2013. Unless […]
Read moreNew Tax Evasion Crackdown
New Tax Evasion Crackdown HM Revenue & Customs (HMRC) has launched a new crackdown with task forces set to focus on five areas of business seen by HMRC as high risk in terms of tax evasion. These new task forces are the latest part of an on-going campaign by HMRC to ensure correct tax compliance […]
Read moreUK and US Governments sign FATCA agreement
UK and US Governments Sign FATCA Agreement The UK Government has this week signed an agreement with the USA to improve international tax compliance and implement FATCA (Foreign Account Tax Compliance Act). FATCA is designed to allow foreign bank account information to be exchanged internationally to tackle the perceived risk of tax evasion. The agreement […]
Read moreNETHERLANDS – 30% Ruling – changes for 2012
Netherlands 30% Ruling Changes for 2012 From 2012 onwards, new restrictions apply on the 30% ruling – a tax break for “expats” working in the Netherlands. The 30% ruling in general means that 30% of your gross earnings may be exempt from Dutch taxation. This ruling makes the Netherlands a potentially attractive location to be […]
Read moreOffice of Tax Simplification (OTS) reports on unapproved share schemes
Office of Tax Simplification (OTS) reports on unapproved share schemes The Office of Tax Simplification was established in July 2010 to carry out reviews in order to provide independent and specialist advice to the Chancellor on ways to improve and simplify the UK’s tax system. Following an earlier report on tax-approved employee share schemes, the […]
Read moreUK Statutory Residence Test (SRT) – July 2012
UK Statutory Residence Test (SRT) The UK Government has recently issued a summary of responses to last year’s consultation on a UK Statutory Residence Test (SRT). Please see our previous articles about the UK SRT: UK Statutory Residence Test and Non-Domiciled Reforms (23/06/11) Statutory Residence Test (SRT) (15/12/11) The Government remains committed to having a statutory test […]
Read moreFrench to tax second holiday home owners
French to Tax Second Holiday Home Owners UK citizens who own homes in France will have to pay more tax under proposals announced this week by French President Francois Hollande. Approximately 200,000 Britons own second homes in many parts of France, particularly those serviced by budget airlines. Many UK citizens let out their holiday homes […]
Read moreMillionaire owes £469,000 in taxes for failing to disclose an offshore account
Failing to Disclose Offshore Accounts We recently posted articles on our website (see links below) about Britons who have their wealth held in undisclosed offshore bank accounts coming forward to pay their unpaid taxes and penalties. UK – Swiss Tax Changes HMRC estimate tax of £3bn to be raised from hidden Liechtenstein accounts A […]
Read moreThe IRS announces efforts to help “delinquent” US taxpayers living overseas
The IRS announces efforts to help “delinquent” US Taxpayers The Internal Revenue Service (IRS) has announced a plan to help Non-Resident US taxpayers overseas with their tax filing requirements and foreign retirement plan concerns. An IRS Commissioner spokesperson has said: “Today we are announcing a series of common-sense steps to help US citizens abroad get […]
Read moreHMRC’s next campaign: The Tax Return Initiative
The Tax Return Initiative The Tax Return Initiative by HM Revenue & Customs (HMRC) will catch compliance failures, targeting the higher-rate taxpayers who should pay tax at 40% or 50% and who are required to complete a Self Assessment Tax Return for 2009/10 or earlier, but have not yet done so. Taking part in the […]
Read moreAre you thinking of selling your Olympic Torch?
Are you thinking of selling your Olympic Torch? HM Revenue and Customs (HMRC) have announced that there could be potential tax consequences that may be incurred from Olympic Torch sales. In total, 8,000 torchbearers will carry individual torches across the UK and they have all been offered the opportunity to purchase their torch at a […]
Read moreHMRC estimate tax of £3bn to be raised from hidden Liechtenstein accounts
Tax Raised from Hidden Liechtenstein Accounts Up to £3bn is set to be raised by 2016 from British taxpayers who have placed money in Liechtenstein, which is more than the £1bn that was initially expected. It is thought that 5,000 Britons have their wealth held in secret accounts in Liechtenstein, in some cases going back […]
Read moreHMRC apologises after sending Self Assessment penalty notices in error
HMRC Apologises After Sending Self Assessment Penalty Notices in Error HM Revenue & Customs (HMRC) have recently sent out 12,000 daily penalty notices in error to people who had been told that they no longer needed to fill in Self Assessment Tax Returns. In the letter, it explained that to add to the long-standing fixed […]
Read moreIncrease in UK Remittance Basis Charge from April 2012
Increase in UK Remittance Basis Charge The UK Remittance Basis Charge (RBC) applies to non-domiciled individuals who are UK tax resident for a number of years and wish to claim the “remittance basis” of taxation rather than the “arising basis” of taxation. Under the remittance basis, individuals pay UK tax only on non-UK income/gains remitted […]
Read moreHMRC penalties for Tax Returns outstanding at 1 May 2012
HMRC Penalties for Outstanding Tax Returns HM Revenue & Customs (HMRC) is urging anyone who has still not done their 2010/11 UK Self Assessment Tax Return to file it on-line before the end of April 2012, or be charged daily penalties from 1 May. Anyone whose Self Assessment Tax Return is more than three months […]
Read moreDecrease in Non-Dom numbers in the UK
Decrease in Non-domiciled Numbers Evidence that the £30,000 annual Remittance Basis Charge (RBC) is impacting on the number of non-domiciled people who are residing in the UK has emerged. A request made under the Freedom of Information Act has confirmed that the number of “non-doms” fell by 16% in the first two years that the […]
Read moreNon-residence update
Non-residence update The Government’s proposed Statutory Residence Test has been delayed until April 2013 but it if you are considering becoming non-resident for UK tax purposes, one way of doing this is to work full-time abroad for more than one complete UK tax year. Therefore, individuals should bear in mind that it may be worth […]
Read moreUK Statutory Residence Test (SRT) update
UK Statutory Residence Test (SRT) Update In June this year, we advised our clients that a Statutory Residence Test (SRT) was due to be introduced by the UK Government with effect from 6 April 21012. The proposed test was to be introduced to give individuals clear guidance and certainty in determining their UK tax residence […]
Read moreStatutory Residence Test (SRT)
Statutory Residence Test (SRT) The Government has recently announced that the long awaited SRT will now be delayed and will not be introduced until April 2013. We are sending a separate communication to our clients alerting them to this, but please contact us if you have any doubts as to how this will impact your […]
Read moreHMRC targets electricians
HMRC Targets Electricians HM Revenue and Customs is planning to pursue electricians as the next step in its plan to crackdown on tax evasion. The ‘Electrician’s Tax Safe Plan’ (ETSP) will be launched in February 2012 and offer favourable terms to those voluntarily disclosing any unpaid taxes. Anybody that does not come forward will face […]
Read moreSwiss Tax deal shows there is no substitute for good advice.
Swiss Tax Deal Shows there is no Substitute for Good Advice Following a similar agreement with Lichtenstein in 2009, HMRC’s latest agreement with Switzerland proves that the net is closing on tax evaders. A potential £5 billion could be raised from the latest deal, which sees Swiss banks delivering an average of 35% of account interest […]
Read moreSwiss bank accounts hit by Tax Deal
Swiss Bank Accounts Hit by Tax Deal A deal between HMRC and the Swiss authorities was announced on Wednesday following a similar Swiss / German arrangement earlier this month. Whilst account holder anonymity will be maintained, from 2013 onwards the Swiss authorities will tax UK citizen account holders who have connected assets with undisclosed tax […]
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Tax and National Insurance Integration
Tax and National Insurance Integration UK Government issues a call for evidence regarding the possible integration of the tax and National Insurance systems. Executive Summary The Government has several times in the past few years talked about the potential harmonisation of the income tax and National Insurance systems. It is now revisiting the issue and […]
Read moreUK Statutory Residence Test and Non-Domiciled Reforms
UK Statutory Residence Test and Non-Domiciled Reforms Executive summary A consultation document on the introduction of a statutory residence test to be used by individuals in determining their UK tax residence status was issued on 17 June 2011. It is proposed that the new test will apply from 6 April 2012 onwards. The test has three parts: […]
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Expat UK Tax Budget Changes
Expat UK Tax Budget Changes Budget Changes The £50,000 non domicile charge in the 2011 budget begins in the 2012/2013 tax year. These budget changes could mean that you need to pay the £50,000 charge. Watch the video above to find out if you will be required to pay. To read more about the changes […]
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