With the self-employed and landlords facing a challenging economic environment, the government has again delayed the introduction of the Making Tax Digital (MTD) scheme for income tax self-assessment (ITSA) – this time by two years…
The marshmallow paradox – VAT or no VAT?
The biggest marshmallows are in fact VAT free. The intricacies of VAT continue to delight or inflame, with marshmallows the latest food product to come under the spotlight. The outcome of a recent First-Tier Tribunal…
Finding the right mix in mixed use properties
A recent tribunal found in HMRC’s favour when a residential property was questionably deemed mixed use. On the purchase of a mixed use property, stamp duty land tax (SDLT) is paid at non-residential rates rather…
UK Prime Minister’s Statement – 14 October 2022
On 14 October, as an important deadline loomed for Bank of England support of the government bond markets to expire, the government’s political turmoil ratcheted up as the fallout from the ‘fiscal event’ of 23…
Making Tax Digital: avoiding VAT penalties
From 1 November 2022, VAT-registered businesses that do not yet comply with the Making Tax Digital (MTD) requirements will face penalties. Businesses should also be aware of the new VAT penalty regime being introduced from…
The rise of mini umbrella company fraud
The rise of mini umbrella company fraud continues to concern HRMC which has recently updated its guidance for businesses that either place or use temporary labour. Mini umbrella companies can be used to abuse the…
Six-fold increase on late payment interest rates
HMRC late payment interest rates have now been raised six times during 2022 – from 2.6% at the start of the year to a current rate of 4.25%. However, at least there’s some good news,…
Getting in touch: HMRC’s new email facility
Although there is no general facility to contact HMRC by email, it is slowly moving into the 21st century by providing the option to receive an email response. But of course, this comes with a…
Chancellor’s May economy statement: all about energy
In late May, the Chancellor announced new measures to counter the rising cost of living, in particular energy prices. Initial measures for 2022 In early February 2022, the Chancellor announced a package of measures to…
Zero rated food confusion
The distinction between zero-rated food and standard VAT confectionery is a crucial, and complex, one – not helped by what may appear to be apparently arbitrary rulings. Despite its predecessor losing a notorious ruling over…