Larking Gowen weekly digest – latest news on direct/indirect tax, financial reporting and more…
Student loans: HMRC guidance on student loan repayments and self-assessment returns has been updated and the instructions should help avoid some of the problems that arise when a loan has been fully repaid. In further guidance HMRC ask for the tax return to be submitted by 1 November in cases where the loan has already been fully repaid, or is likely to be repaid in the next two years, to avoid overpayment.
Non resident capital gains tax (NRCGT) return penalties: Following representations from taxpayers and agents HMRC have confirmed that they will no longer issue daily penalties for late NRCGT returns and will withdraw past daily penalties. This should be automatic but if we have clients affected we will point this out to HMRC to ensure the penalties are withdrawn.
VAT and indirect taxes
Supply splitting: HMRC have issued Spotlight 38 focusing on tax avoidance caused by splitting effectively one supply between two suppliers, to benefit from a lower VAT rate on one or both of the elements. If you have any clients where you believe this may be happening please contact the VAT team on 01603 624181.
Whilst every effort is made to ensure accuracy, information contained in this publication may not be comprehensive and recipients should not act solely on the basis of this information.