Pension tax relief can now be claimed online
Higher and additional rate taxpayers can use a new online form to claim additional tax relief on pension contributions. Can you accelerate relief?
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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?
HMRC has launched a new online form to make it easier for taxpayers to claim additional tax relief on their pension contributions. Claimants can login using their Government Gateway user ID and will need to supply proof of the pension contributions from the pension provider.
The service is only available to taxpayers that are not in self-assessment, i.e., taxpayers that only have PAYE income, whose marginal rate of tax is 40% or 45%. This would only be necessary where there is further tax relief to claim, such as where personal pension contributions are made or workplace pension contributions that are not under a net pay arrangement. Advisors cannot use the online service and must continue to make such claims for clients by post.
Once the form has been submitted, HMRC should respond within 28 days which is much quicker than if the claim is sent by post.
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