HMRC changes policy on time-to-pay arrangements
The loan charge in respect of historic use of "disguised remuneration" schemes is one of the most controversial enforcement policies in existence. If you owe money under the rules, why might a quiet change in policy relating to repayment arrangements?
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Accounting for VAT if there is no cash payment
Your business has submitted repayment returns for the last two quarters and you are concerned that you might have underpaid output tax on some supplies where no money has changed hands. Are your concerns justified?
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Treatment of distributions under review
The government has launched a consultation on modernising the tax treatment of distributions and repayments of capital by companies. The proposals could affect the distinction between dividends taxed as income and capital payments subject to CGT. What changes are being considered?
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Tax relief on equipment you haven’t paid for (yet)
The timing of tax relief for purchases of equipment isn’t straightforward when payments are delayed or goods are purchased through hire purchase (HP) agreements. How can you use these rules to your advantage and get tax relief before you’ve paid the final invoice?
If you owe tax in respect of disguised remuneration settlements and the loan charge, you’ll want to know about HMRC’s recent change of policy on time-to-pay arrangements . These tax debts automatically qualified for a time-to-pay arrangement over five years if your earnings were less than £50,000 per year or, where the loan charge applies, seven years if you earned less than £30,000.
HMRC will now use your most recent complete tax-year information available to determine if you’re eligible for the automatic time-to-pay deals and generally for other personal tax debts. The new criteria will apply to future time-to-pay arrangements but will not affect those which already exist.
Although the automatic time-to-pay deals don’t apply to those whose earnings exceed than £50,000 per year, HMRC says that it will consider flexible payment plans that can be amended over time to take account of changes in your circumstances.
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