Blick Rothenberg said, 'If you have disposed of a UK residential property that is not your own primary home, report the disposal accurately to ensure that the correct rate of tax is charged (up to 28% rather than 20% for gains on most other assets).'
Source: The Daily Telegraph Online
Stefanie Tremain, a manager at Blick Rothenberg said, 'Individuals who miss the 31 January deadline and are up to three months late will incur an automatic £100 penalty. Completing and filing your Self Assessment form may seem a hell of a lot of work but it needs to be done. After three months, HMRC will start charging penalties of £10 per day and after six months the penalty will be 5% of the person's tax or £300 – whichever is higher.'
She added, 'Taxpayers should have registered for HMRC online services and set up an online account to file their return online. However, once this is done it can take up to ten days for the necessary activation code to arrive, so if they have not done this by now then it's probably too late and they could face a fine. Another point which can catch taxpayers out is that the user ID needed to log into their online account is not the same as their unique taxpayer reference number ("UTR").'
Source: Landlord Today
Heather Self, a partner at Blick Rothenberg said, 'Happy New Year, everyone, and I hope you had a nice Christmas – unlike those lovely people at The Mail on Sunday, who were terribly upset about ‘Britain’s worst tax Scrooges’. Apparently, ‘almost one in five of the biggest firms paid nothing last year’ – how dreadful!'
She added, 'Let me be clear. I am not condoning artificial tax avoidance, and I accept that some large companies may still have ‘opaque schemes’ which reduce their tax bill. But this article provides very little evidence that any such behaviour is going on here. By conflating straightforward behaviour (such as claiming allowances, relief for losses or paying tax where the profit is made) with artificial avoidance, The Mail on Sunday is doing absolutely nothing to improve its readers’ understanding of how the tax system actually works.'
Source: The Tax Journal
Heather Self, partner at Blick Rothenberg said, 'If all they're doing is moving head office, it will make very little difference to the UK tax bill. If as they've indicated the R&D and technology is remaining in the UK, then that should account for the majority of the UK tax bill in any case.'
Source: Financial Times
Robert Pullen, a partner at Blick Rothenberg said, 'I'm pleased that HMRC has finally admitted there's been a mistake.'
He added, 'The mistake was bad enough, affecting as it did more than 600 people, but if something went really wrong it could hit thousands or millions.'
Source: BBC Business
Stefanie Tremain, a manager at Blick Rothenberg said, 'I estimate one in five of my clients were given incorrect payment on account calculations.'
Source: The Times
Robert Pullen, a partner at Blick Rothenberg said, 'This is the last thing individuals want to receive in January —a £100 automatic penalty when the deadline hasn't even been reached yet.'
He added: 'After contacting HMRC, we were informed this was a system error affecting tax returns not yet submitted online and that a number of penalty notices have been sent out.'
He said, 'In all cases we are aware of, the penalties have been cancelled when requested without challenge but many taxpayers may be unaware of the timing error. Anyone who has received these premature penalty notices should contact HMRC as soon as possible to have the matter put right.'
Source: The Times
Fiona Fernie, a partner at Blick Rothenberg said, 'The loan charge was one of several areas where the House of Lords economic affairs committee expressed concern about the extension of the powers of HMRC in recent years.'
Source: FT Adviser
One change is that the interest relief for landlords, who were once able to deduct all interest paid on mortagages from their profit for tax purposes, is being phased out with the current batch of tax returns for the 2017-18 tax year the first to include this adjustment. Nimesh Shah, a partner at Blick Rothenberg said, 'Some landlords either do not know that the rules exist or are not sure whose responsibility it is to calculate the deduction. I expect a lot of landlords will not complete the sections correctly, because it is not clear.'
He added, 'Buy-to-let investors are required to calculate the amount of mortgage interest they are able to deduct themselves.'
Source: The Daily Telegraph
Stephanie Tremain, a senior manager at Blick Rothenberg said, 'Taxpayers will understandably rely on the information sent to them by HMRC, but for peace of mind it's important that they double check the amount due in January 2019 with their accountant, or for those without an accountant, they need to check their completed 2017-18 tax return.'
She added, 'It is unclear how many taxpayers are affected, or whether HMRC will be contacting those who are, but with the payment deadline fast approaching it is hoped that this will be rectified as soon as possible.'
Source: The Daily Telegraph