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One of my clients has been denied a renewal of its gross payment facility because HMRC are saying it didn't pay its Corporation Tax on time.  The company had a time to pay arrangement and adhered strictly to the terms of this agreement.  Has anyone else come across anything like this and did they manage to resolve matters?

My client is undergoing an offshore disclosure enquiry and has been asked for documentary evidence of a receipt paid into a Jersey bank account in 1998.

My client is not Uk domiciled and they know that the money came from South Africa as part of an inheritance. They are happy to provide the information but unfortunately they no longer have it.

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Can a landlord operate through a ltd as an investment company, being the property (and the mortgage) in the director’s name?

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Hi

I have a scenario where Co. A acquired 100% of the shares in Co. B for £50K. Co. B then transferred its trade to Co. A.

Co. B is to be wound up.

I know this sounds basic, but how would you treat the £50K investment in Co. A's accounts. Is this a capital loss on the liquidation of B (even though there was a transfer of the trade from B) or would it be reallocated to goodwill or another asset to take account of the fact that the trade was transferred (eg Dr g/will, cr investments £50K in co. A)

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We have a limited company client which has sold a block of flats off on long leases.  A flat management company was set up by the client and as each flat was sold one share in the management company was transferred to the leaseholder.

When the last flat was sold the freehold reversion was transferred to the management company for NIL consideration.

Does this give rise to a tax liability in the client company, please?

PR

The scale of HMRC’s difficulties in introducing a new system to manage PAYE codes has emerged in an appendix to the department’s 2009-10 accounts.

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My client is a self-employed hairdresser and beautician who traded in partnership in the years 06/07 – 08/09. The profits have always remained below the personal allowance and in 08/09 the decision was made to cease trading as a partnership and continue the same trade alone. This was clearly shown on the 2008/09 tax return by showing the partnership ceasing on 30/09/08 and new self-employed pages showing trade commencing on 01/10/08.

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Hi

Please can anyone let me know the VAT notice that applies to day nurseries? I've searched and searched and can only find the notice that applies to schools.

Thanks

Hi all - I am dealing with a client who made a personal AVC of £64K to his employer pension scheme in 2009-10 during which year his earnings totalled £43K.  The contribution is within his lifetime limit and he has never had earnings in excess of £130K in a year.

My understanding was that he is perfectly entitled to make this contribution, but that the tax relief is limited to that amount of the gross contribution which equals his earnings. This seems to be supported by Simons Taxes at E7.506.

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Husband and wife, both UK resident, have jointly held for 5 years the entire share capital of a company registered and trading in Africa.

Both are actively involved in the management of the company.

Am I correct in assuming that ER will be available if they dispose of their entire shareholding in the near future? 

My client converted her directors loan account into Cumulative redeemable preference shares in 1992. The company was insolventent at the time.

The company has now gone into liquidation and my client has made a capital gain on another asset. I assume that the loss is allowable against the capital gain?

Does the fact that the shares were worthless at the time of subscription have any effect? (the conversion of the directors loan account into shares just about made the shareholders funds positive)

Many thanks

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When recently completing a company's VAT return, it was noticed that VAT amounting to £60,000 had not been reclaimed in relation to a period 3 returns ago (i.e. the £60,000 would have been correctly treated had it been claimed 3 returns ago).

This VAT was claimed during the recent return, and HMRC have now queried the "high" reclaim amount on the recent return.

Should this have been suject to a voluntary dosclosure given the size of the "error"?

Is it even an "error" at all? (since the position is now correct)

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The First-Tier tribunal found in favour of a couple who faced tax assessments of nearly £20,000 on dividends that HMRC claimed were paid as part of a settlement under s660a of the Income and Corporation Taxes Act 1988.

In a decision published this month, tribunal judge Barbara Mosedale concluded that an arrangement under which David Patmore paid his wife dividends on non-voting B shares in their company did not fulfil the criteria for an s660a settlement.

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Am I correct in thinking that no capital loss relief is available in respect of an irrecoverable loan to a foreign company ? If the money was lent to a UK company it is available under TCGA 1992 s253(1) but I can't see any legislation that allows relief in respect of loans to foreign companies. Any confirmation or pointers much appreciated.

I vaguely remember that there was a concession that an overdrawn director's loan account was allowed by HMRC as long as it was below a certain amount, possibly £1,000 or £2,000. Does anybody know if that is the case and if it is, what the actual amount is nowadays. Thanks. 

Does anybody have a spreadsheet that will help to calculate and show the comparison for costs and tax costs etc for having a company car or using own car for business?

Thanks

A pensioner with little income and no tax liability for many years inherited £60,000 on the death of his child. Not wanting the money he looked around for a good cause to donate it to and decided on a church in urgent need of repairs. He signed a GiftAid declaration without really understanding what it meant.

Now doing the tax computation there is no tax liability but he will need to pay £15,000 to cover the GiftAid tax! Needless to say his annual income is less than £15,000 so this is quite impossible.

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Individual acquires new holiday home which will be let to public plus some private use.  On registering for VAT, input tax recovery on purchase made based upon business use, ie non business part not recoverable.  Alternatively under Lennartz method all input VAT recovered at the outset and quarterly adjustment made over 10 years based upon non business use each quarter.  If the property is made available for letting all year but is actually only rented for say 8 months and so individual uses for the other 4 does that mean 2/3rds VA

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at first glance would company A be deemed an investment company or trading company by HMRC:

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