Archive:November 2014

Please find below all the articles from November 2014.

Mini One Stop Shop (MOSS) – Revision

Saturday, November 1, 2014

This sounds like a friendly retail outlet where you might buy a pint of milk on a Sunday evening. In fact it is short-hand for the online portal which UK businesses should use from 2015 to account for VAT they owe in respect of digital services provided to customers in other EU countries.

We mentioned this new rule in our July 2014 newsletter. “Digital services” includes a multitude of products such as:

– music downloads;
– video on demand;
– electronic books;
– online games;
– anti-virus services;
– software purchased by download;
– charges by…

National Insurance Contributions

Saturday, November 1, 2014

It seems that HMRC is trying to gather every penny in tax and national insurance contributions (NIC), from every possible source. Recently it has been demanding payment of class 2 NICs from landlords and investors in investment partnerships. If you get a bill for back-dated class 2 NICs should you pay it?

The annual class 2 NI liability is a relatively small amount (£143 for 2014/15), but it can provide you with an entitlement to the UK state pension. At least ten full years of NI contributions will be…

Taskforce at Large

Saturday, November 1, 2014

HMRC has set up specialist tax investigation teams to concentrate on recovering unpaid tax from particular business sectors or as a result of tax fraud.

The latest HMRC taskforce teams are looking at:

– fraudulent VAT repayments in the West Midlands and Nottingham areas; and
– property tax evasion in South West England and South Wales.

The property taskforce is using data gathered about property transactions by the Valuation Office in order to target taxpayers who may have sold properties but not declared a capital gain on their tax returns. The same…

Pensions Death Tax

Saturday, November 1, 2014

Currently if you die before you have started to draw your pension, the value of your pension fund will not usually be subject to inheritance tax (IHT) at 40%, as it is excluded from your estate. However, there can be a 55% tax charge where your pension fund is passed to someone else under your will, especially if you die aged over 75.

From 6 April 2015 the 55% tax charge will be abolished. If you die before you reach age 75 you will be able to pass on…