Mark Hendy » Tax

Ups and Downs in the EU

Mark — Fri, 18 Jun 2010 07:24:22 +0000

Shared from: Is there more to life than shoes?

Whilst Cameron and Hague are having a love in with Barroso and the EU, agreeing that people who lead an organisation who haven’t had their accounts signed off for fifteen years should approve our budget, one man who has never traded his principles gave another warning on the Euro.

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Lower Taxes are good economics and great politics

Mark — Fri, 02 Apr 2010 09:41:40 +0000

Taken from John Redwoods Diary

The UK is over taxed. The deficit has not been brought on by taxing too little, but by spending and wasting too much. Labour’s offence is not for setting tax rates that are too low, but wasting so much money on self promotion, poor purchasing, too much bureaucracy, political correctness – and above all on far too many people out of work and living on benefits. The total benefits bill is larger than the massive deficit, including huge spending on more than 5.5million people of working age without a job.

The taxes which are most damaging are the ones which tax saving and earning. We need to work harder, earn more, invest more. To do that the enterprise economy needs lower taxes on effort and success. We are not going to get the deficit down enough without getting many of the 5.5 million into work. We are not going to get it down without more tax revenue, and more tax revenue requires lower rates of tax to stimulate more income to tax, and more jobs to cut the benefits bill.

So I am wholeheartedly behind George Osborne when he recommends making a start with a lower Corporation Tax rate, with the possible abolition of IR 35 and other penal taxes on self employment, the reduction of Labour’s very high National Insurance, and his removal of non millionaires from Inheritance Tax. It’s the right direction for policy. I think we will need to do more to be sure of sufficient response from the enterprise economy to boost jobs and the revenues by enough.

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Tories to Scrap IR35

Mark — Wed, 31 Mar 2010 09:32:53 +0000

Tories to Scrap IR35 – Geeks Rejoice

UPDATE

Mark Prisk, the Shadow Business Minister, has announced that a Conservative Government would undertake a full and fundamental review of small business taxation, including IR35. The aim will be to provide a simpler, clearer and lasting tax regime, so businesses can plan with confidence. ”For the last 13 years, Labour have constantly meddled with the tax rules for freelancers and self-employed, Prisk said. “IR35 has especially proved to over-complex, uncertain and often unfair”.

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HMRC wins a case which settles the issue that Accountants don’t have legal priviledge

Mark — Tue, 02 Feb 2010 12:43:27 +0000

HM Revenue & Customs has won a significant victory after a court ruled that tax advice given by an accountancy firm to its clients is not privileged. Accountants warn that, as a result of the ruling, HMRC can now force them to divulge specific advice they make available to their clients on tax law matters. Although the case involved insurance giant Prudential, the judgement is applicable to all taxpayers, irrespective of their size, who engage accountants for tailored advice.

According to the Special Commissioners, where correspondence with accountants would add to the facts needed to determine a tax liability, it should not be confidential. In these circumstances, the issue of a notice from HMRC requiring the accountant to share tax planning advice is valid, and legal professional privilege does not apply, the court said

Correspondence between solicitors and their clients which contains legal advice is privileged, said law firm Harold Benjamin, and will not be shared with HMRC.

Lord Monckton politely challenging a greenpeace activist on climate change

Mark — Mon, 28 Dec 2009 07:37:53 +0000

This discussion is polite yet challenging and offers much food for thought, including some explicit data and references for sources that can be checked.

Painting: Let there be greed

Mark — Sun, 27 Dec 2009 20:18:56 +0000

The very kind @charonqc a twitter friend of mine has donated this painting to me. The painting is titled “Let there be greed”. A veritable thank you to M’learned, @Charonqc who has declined my offer of payment for his work.

Quote of the day

Mark — Sun, 06 Dec 2009 12:54:56 +0000

One day, when historians piece together the collapse of Western civilisation, they will stand agog at the stupidity of one-world socialism.

From the unlikely Obnoxio the Clown

Oh My…

Mark — Sat, 05 Dec 2009 07:27:04 +0000

Erm, well it’s probably more scientific than the “hide the decline” psudoscience the CRU were using.

Climategate the song

Mark — Sat, 28 Nov 2009 09:15:23 +0000

HMRC clarify guidance for Foreign Tax Credit Relief applied to foreign dividends

Mark — Thu, 29 Oct 2009 15:24:47 +0000

HMRC guidance has recently been clarified regarding the interaction of Foreign Tax Credit Relief (FTCR) on dividends, and any tax rate specified in a Double Taxation Agreement. The impact of the revised guidance relates specifically to those dividends which qualify for the new Overseas Notional Tax Credit.

The HMRC guidance referred to is provided by Helpsheet 263, which was updated on 8 October. The current version of this Helpsheet can be viewed on their website. (www.hmrc.gov.uk/helpsheets/hs263.pdf)

The specific change in guidance relates to box TC100 of the FTCR working sheet.

Guidance prior to the update stated;

box TC100

“enter in box TC100 the foreign income (from boxes TC6 to TC10) multiplied by the allowable percentage rate.”

As the figures in boxes TC6 and TC10 already include any calculated Overseas Notional Tax Credit, this guidance would suggest the following behaviour (assuming a foreign dividend of £1,000 and the Double Tax Agreement states that 15% foreign tax is the allowable maximum):

Gross foreign dividend	£1,000.00
Grossed up for notional credit	£1,111.11
Allowable DTA maximum	£166.67 (£1,111.11 @ 15%)

The updated guidance states;

box TC100

“enter in box TC100 the foreign income (from column B of the Foreign pages) multiplied by the allowable percentage rate.”

Column B of the foreign page is the value of foreign dividend, prior to the inclusion of any notional tax credit, and therefore clarifies that the correct calculation should be;

Gross foreign dividend	£1,000.00
Grossed up for notional credit	£1,111.11
Allowable DTA maximum	£150.00 (£1,000.00 @ 15%)