The following Owner-Managed Businesses guidance note Produced by Tolley in association with Philip Rutherford provides comprehensive and up to date tax information covering:
The rate of the penalty chargeable on the taxpayer under the harmonised penalty regime is based on the behaviour of the taxpayer and whether the error came to light from an unprompted or prompted disclosure. Once these factors have been decided, a penalty is calculated based on the potential lost revenue (PLR). The PLR is defined as the additional tax arising as a result of correcting the inaccuracy or assessment as determined by FA 2007, Sch 24, para 5. For the purposes of calculating the PLR, tax includes national insurance contributions. For HMRC guidance on PLR, see CH82150–CH82273.
For details of the behaviours, see the Calculating the penalty for inaccuracies in returns ― behaviour of the taxpayer guidance note.
For more on whether the disclosure is prompted or unprompted, see the Penalty reductions for inaccuracies guidance note.
Over-statements, which can include previously unmade claims to reliefs or deductions available, are only set against understatements in calculating the PLR where they relate to the same type of liability and the same tax period. A
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The substantial shareholding exemption (SSE) provides a complete exemption from the liability to corporation tax on the gains generated from qualifying disposals of shares and interests in shares by qualifying companies. Conversely, if losses are generated by the disposal and the SSE conditions are
Maintenance payments are payments made by a taxpayer to their former or separated spouse for the maintenance of that former spouse or their children. To obtain any tax relief for maintenance payments, one of the couple must have been born before 5 April 1935 and the payments must be made by virtue
Many people work from home either on an informal or a full-time basis. These people can be employed or self-employed, and their employment status affects the expenses they can claim as a deduction from their earnings.When dealing with someone working from home, it is important to remind him that
This guidance note provides an overview of what conditions need to be met before a business is entitled to treat VAT incurred as input tax. This note should be read in conjunction with the other notes in the ‘Claiming input tax’ subtopic. For a flowchart outlining the procedure for claiming input
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