Tax law

The UK tax law system is complex and changes frequently. It is important for both individuals and businesses to keep up to date with these changes, as it is your responsibility to take care of your own tax situation. In our tax law blog, we discuss current issues in tax law, both within the UK and the EU, and occasionally international issues where relevant. Issues explored include: changes to stamp duty laws, inheritance tax planning, capital gains tax, changes to income tax laws or process, self-employed person’s tax management, IR35 and basic business-tax issues.

Have a browse for topics of interest. If you need legal advice on anything you come across, Contact Law can put you in touch with a specialist tax solicitor local to you.

HMRC blunder means six million get £400 tax refund

Six million tax payers will receive a refund of £400 from HM Revenue and Customs (HMRC) this weekend as it has made the decision to settle discrepancies from as far back as 2001. However, 1.2million will be told that they owe £600 as HMRC has to find £620million.

50p income tax rate likely to be scrapped

The top 50p rate of income tax is likely to be scrapped after Treasury projections indicate that more money could be raised by charging more people a lower rate of 45p. The higher rate is charged on incomes of at least £150,000 and only affects around 300,000 earners. It was introduced by Gordon Brown and [...]

HMRC tax-dodging proposals criticised by accountants and lawyers

HM Revenue and Customs’ new plans to target tax-avoidance have been widely criticised by accountants and lawyers who specialise in tax matters. The new proposals will give tax payers a 60-day period in which they to declare how much tax they may have withheld and be free from potential criminal prosecution. In addition, the proposals [...]

Tax system must help married couples, say Conservative MPs

Conservative backbenchers have tabled an amendment to the Finance Bill that would allow married couples to transfer unused personal allowances and therefore reduce their tax bill. The amendment would go some way to fulfil the Prime Ministers pledge in December 2010 to make the tax system more family friendly.

Law Society to intervene in Prudential case over LLP

The potentially landmark case by Prudential against HM Inspector of Taxes faces another challenge as the Law Society has been granted permission to intervene by the Supreme Court. Prudential is seeking to extend the principle of legal professional privilege (LLP) to accountants who offer advice on tax law.

Budget 2011: Inheritance tax reforms to encourage charitable legacies

George Osborne announced £540m worth of tax breaks for charities during his Budget 2011 speech on 23 March. The tax breaks include inheritance tax reforms aimed at encouraging people to leave 10% of their estate to charities. The Chancellor said his goal is for it to become the norm for every person to leave a [...]

Sausages raise VAT question after European Court ruling

The European Court of Justice has passed a landmark ruling that could see HM Revenue and Customs receive VAT refund requests from street vendors of hot food, such as sausages and chips, and cinemas. Manfred Bog, a German who sells sausages and chips from three mobile snack bars at weekly markets, argued that he should [...]

Proposed changes to benefits laws loom

Chancellor George Osborne has announced various plans for social security reform to reduce the amount spent on welfare benefits as part of the UK government’s broader budget cuts. Working class families and single-parent families are among those most outraged by the proposed cuts.

What is the IR35 legislation?

The IR35 rules were introduced by the Finance Act 2000. They were introduced by the former Inland Revenue in 2005. The IR35 rules were introduced as a measure to remove opportunities for the avoidance of tax and class 1 National Insurance Contributions (NICs) by using an intermediary, such as service companies, partnerships or limited companies.

When should you use a tax solicitor versus a tax accountant?

All businesses should have their annual tax return completed by a tax accountant. These professionals not only have the knowledge and skills to ensure that all tax returns are completed on time and are a true and accurate reflection of the business’s tax affairs, HMRC (HM Revenue & Customs) will also appreciate the fact that [...]