New HMRC powers of discovery will be retrospective
The government has confirmed that the Finance Bill will include changes to discovery assessments, allowing HMRC to recoup unpaid high income child benefit charges going back almost ten years. What’s the full story?
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New HMRC guidance on winter fuel payments
HMRC has released new guidance on the recovery of winter fuel payments. What do you need to know?
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Festive tax breaks for remote workers
You’re familiar with the tax break for Christmas parties but you now have a few remote workers, and the company will need to reimburse their travel and accommodation costs if they attend an event. Which costs count towards the tax-free limit and how can you manage any overspend?
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New process for some exports starting in Northern Ireland
Starting next month, businesses that import goods via Northern Ireland will need to change their processes. What do you need to know?
The unpopular high-income child benefit charge (HICBC) was introduced in 2013. Despite HMRC administering child benefit payments, it is still finding taxpayers that have not declared the benefit in previous years. Once the Finance Bill is enacted, HMRC will be able to open discovery assessments to collect any unpaid tax charges from as far back as 2013. However, the change will not apply to those who have already appealed against such assessments.
This addition to the Finance Bill is a result of the Upper Tribunal decision in Wilkes v HMRC, which found that HMRC did not have the power to impose the HICBC by means of discovery assessment as there was no income which ought to have been assessed. As a result, Mr Wilkes did not have to pay the tax charges. Individuals with income over £50,000, where either they or their partner receives child benefit, could soon receive a large unexpected tax bill from several years ago.
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