Snappy Snippets Page
Fuel Advisory rates
HMRC publishes mileage allowances which can be paid to employees free of tax where they use a company car for business travel and the employer does not provide free fuel. These have recently been subject to a slight downward revision. The new rates can be found at: www.hmrc.gov.uk/cars/advisory_fuel_current.htm
Working from home?
Self-employed people who work either at or from home may benefit from a recent relaxation of the rules on claiming expenses for the use of a room at home for business purposes. Changes to the HMRC internal manuals indicate that they may now be willing to accept claims for more expenses than previously. Got to http://www.hmrc.gov.uk/manuals/bimmanual/BIM47825.htm
Do you trade on ebay?
If you sell things on e-bay regularly the Revenue may be watching you! HMRC has a special unit dedicated to tracking people who regularly "trade" on ebay. To check up on whether you need to register as a self-employed business person go to: http://www.hmrc.gov.uk/guidance/selling/index.htm
Company Vans from 6/4/07
The tax benefit rules change for vans from April 6th 2007. An employee can use a "work's van" for home to work travel provided no other private use is made of it at all. Employers need to inform their employees about this and tell them that they may not make any private use of the van or they will be taxable. The tax charge if they breach this rule is extra table income of £3,000 per annum! Employers need to get their systems up to date to ensure they are protected from any employees not operating the new system correctly.
Has your tax code gone down?
Revenue and Customs are nowadays adopting a policy of "coding out" investment income such as bank or building society interest, company dividends and even rental income as a way of reducing the number of tax returns they have to issue every year. If your tax code has recently been adjusted to do this you can object if you want to. The Revenue will then put the code back up but you will have to pay the tax at the end of the tax year, not monthly as you go.
Are you claming to be non-resident?
In an interesting case law decision, (known as the "Gaines-Cooper case" the Special Commissioners have ruled that an individual who was claming to be non-resident had pushed the boundaries of the current rules too far. the person concerned had claimed to be living overseas but visiting the UK for just under the permitted 90 day threshold. On closer examination the Revenue noted that there were very many short visits for overnight stays and the Commissioner have ruled that this individual would be regarded as tax resident in the UK because he had not met the crucial test of having "left the UK". As a result of this case the Revenue has added several new questions to the non-residence pages of the 06-07 tax return this year. If this could apply to you give us a ring and we can advise you further about the potential implications of this case.
Offshore tax Amnesty.
Revenue and Customs recently made available a tax amnesty facility on its website for people with overseas bank accounts and assets that they ought to have declared for UK tax purposes but for some reason have omitted to do so. The deadline for using the facility has now passed but the detailed information still has to be submitted to the Revenue by November this year. If you have used the facility but are unsure how to proceed from now on or are concerned about the next steps and feel you might need advice in dealing with the Revenue on these delicate matters give us a call, we may be able to help.
