HMRC U-turn on helpline closures
Earlier this week, HMRC announced that it would be scaling back its tax helplines, a move that was widely criticised. It has now seemingly reversed the decision. What’s going on?
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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?
Earlier this week HMRC announced cuts to several phone services, including closing of the self-assessment helpline for six months. The intention was to allocate staff resources elsewhere and make taxpayers move to online services such as the HMRC app. The changes were supposed to be permanent, with helplines open only for priority queries at critical times. However, the announcement was met with substantial criticism from the CIOT president who described the move as “misguided”.
In response to the backlash, HMRC issued another press release stating that its plans would be halted while it engages with its stakeholders about how to ensure all taxpayers’ needs - including small businesses' - are met as HMRC shifts more people to online self-service in the longer term. Phonelines will therefore remain open for now.
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