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This week's news in brief: 8 November 2012

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Toolkits for employers

HMRC has updated two of the toolkits in which it provides guidance on areas of error that it frequently sees in tax returns:

  • Expenses and benefits from employment; and
  • National insurance contributions and statutory payments.

Group financing costs

HM Treasury has invited comments by 30 November on draft regulations dealing with the tax treatment of financing costs and income of companies which are members of a worldwide group. The Tax Treatment of Financing Costs and Income (Capital Market Arrangements) (Elections) Regulations 2012 make provision for two such companies ‘to elect that one of them is to take sole responsibility for the discharge of the corporation tax liability of the other where that liability arises as a result of Part 7 [of TIOPA 2010]’.

Online returns reminder

HMRC has reminded taxpayers who have not yet filed 2011/12 tax return that they must send it online to avoid a late filing penalty, as the 31 October deadline for paper returns has now passed. ‘Paper tax returns received on or after 1 November will result in a £100 penalty – even if there is no tax to pay or the tax due is paid on time,’ HMRC said. Online returns must reach HMRC by 31 January 2013.

Swiss/UK tax agreement

HMRC has produced a factsheet to explain how the Swiss/UK tax cooperation agreement might affect UK taxpayers. The agreement is expected to come into force on 1 January 2013 and will provide for a one-off payment to clear unpaid tax liabilities in the past, and for a disclosure option whereby taxpayers can authorise a disclosure of their Swiss assets to the Swiss authorities who will provide details to HMRC under the agreement. The factsheet also reminds taxpayers of the existing options for making disclosures directly to HMRC.

HMRC spotlights

HMRC has issued an updated ‘spotlights’ list of tax avoidance schemes, including a new addition covering property business loss relief schemes. HMRC confirms that losses from such schemes which arise from ‘tax-motivated arrangements’ are countered with effect from 13 March 2012 by FA 2012 s 10.

Issue: 1146
Categories: News