October 2008

New penalties

The Finance Act 2007 introduced a new penalty regime for incorrect tax returns which will affect returns filed for income tax, corporation tax, VAT and others after March 2009. However, that means taxpayers are now trading in accounting periods that are covered by the regime and creating accounting records that will be subject to returns covered by the new rules. HM Revenue & Customs has published guidance on the new penalty rules and as a result the penalty for a deliberate inaccuracy for example can range from between 20% and 100%.

July 2008

Capital Gains Tax - for trading businesses

Gains on the sale of businesses could be taxed at only 10% compared with the standard rate of 18%!

December 2007

Reform of Capital Gains Tax Rules

For assets sold after 5 April 2008 Capital Gains Tax will be liable on the gain at a flat rate of 18% and no deductions will be given for indexation and taper relief. For Limited Companies though, the existing rules will remain in force.

October 2007

CIS Monthly Return penalties

HMRC will be charging penalties for monthly Returns which have still not been submitted to them by close of business on 19 October 2007. This applies to ALL Returns so if one for the month ended 5 May 2007 has not yet been submitted and one for 5 August 2007 has also still not been submitted by 19 October then all those Returns will incur penalties!