Posted by Tax Innovations on 19 Jul 2012
Tax Innovations Ltd: Summer 2012 Newsletter
The British summer weather continues to disappoint and Andy Murray failed to win Wimbledon again, but at least we have the London Olympics to look forward to! It is also time for us to issue our seasonal update on some of the topical tax issues that may have an impact on your affairs.
We hope you find this newsletter informative and if you have any feedback at all, this would be welcome.
Nick Day, Tax Director
UK Statutory Residence Test (SRT) – July 2012
The UK Government has recently issued a summary of responses to last year’s consultation on a UK Statutory Residence Test (SRT).
Qualifying Non-UK Pension Scheme (QNUPS)
QNUPS are a flexible and tax efficient pension scheme that should be of great interest to individuals such as well-remunerated/executive employees and owner managed businesses who:
– feel restricted by either the lifetime or annual contribution limits that apply to registered UK pensions,
– have an existing scheme or benefit trust that no longer meets their needs, or
– have substantial assets and are considering how to structure these investments to maximise growth for the future.
We have joined the Real Time Information (RTI) Pilot
This is the new system that is being introduced by HM Revenue and Customs (HMRC). Most employers will join RTI in April 2013, when it is officially launched, and all employers will be using the service by October 2013.
Inheritance Tax Overpayments
Thousands of estates may have paid more inheritance tax (IHT) than they should have on residential property. Inheritance tax, which is based on the market value of the property at the time of death, can be reclaimed if the property sells for less than the value within four years.
HMRC’s Next Campaign: The Tax Return Initiative
The next initiative by HM Revenue & Customs (HMRC) to catch compliance failures will target 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.
Child Benefit Payments to Parents are Changing
The Institute of Chartered Accountants for England and Wales has told the Treasury that the forthcoming changes to child benefits to parents “is seriously flawed in principle and in practice”.
HMRC estimate tax of £3bn to be 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.
We are supporting the ‘Fat Boy Swim’ charity event
We are delighted to announce that we are supporting the ‘Fat Boy Swim’ charity event. Three brothers are taking part in a charity swim from Southsea to Ryde to raise money for two charities.
Fee Protection Cover
The UK tax office continues to audit the affairs of British taxpayers, and often this seems to be done on what appears to be a quite random basis. The costs of our fees relating to defending against tax audits launched by HM Revenue and Customs (HMRC) can mount up quickly. What an increasing number of our clients are doing is to take out fee protection cover. For a relatively small one-off fee, we can in most cases handle HMRC enquiries in to your affairs at no further cost to yourself.
There are different levels of cover depending on whether you are employed, self-employed, or a company owner, but for example, your personal UK Tax Return can normally be covered for a fee of just £40 + vat per year. If you are interested in this service please let us know and we can provide further details.
Are you aware of the Real Time Information requirements?
Beware of fake HMRC tax refund emails
We are looking to recruit an Accounts Apprentice
Please visit our new recruitment section on our website for further information about this role and for future career opportunities.
If you are interested in any of the issues included in this newsletter, please do not hesitate to contact us for a free no-obligation discussion.
The contents of this newsletter are for general guidance only and you should not rely on its contents without receiving qualified tax advice relating to your own circumstances first.
Tax Innovations Ltd – July 2012
- Tax Relief For Residential Mortgages
- Non-Resident Landlords – UK Tax Update
- Top 10 Expat Tax Tips for Individuals Moving to the UK
- UK tax residents – beware of US LLCs!
- UK Property Sales: Capital Gains Tax for Non-Residents