The following Personal Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
New claims for tax credits are no longer possible as they have been replaced by the Universal Credit for all claimants. Existing claimants will continue to receive tax credits until they are migrated to the universal credit system. Migration will take place when a change in circumstances is reported.
See the Universal credit guidance note.
This guidance note explains the compliance issues you should be aware of in relation to an individual’s tax credit affairs.
You should read the Recovery of overpaid tax credits guidance note in conjunction with this note.
Tax credits are extremely complex, and claimants often make mistakes in their claims. This can present problems when claimants have overlooked an important deadline. They can be left with significant debt as a result of their own mistakes.
There is also the issue of fraud. Unfortunately, the tax credit system has been subjected to concerted attack by fraudsters.
The complexity of the tax credits system and the risk of fraud is part of the reasoning behind the Government’s initiative to replace tax credits by the universal credit.
Generally speaking, although overpayments are sought from claimants, the likelihood of penalties arising in relation to tax credit claims is very slight. However, you should bear in mind that if a client who is a tax credit claimant undergoes an income tax enquiry and as a result, his income is increased, this will significantly affect the financial outcome, as tax credits may be a major component of the financial settlement.
Tax credits compliance covers a number of areas and some of those have been addressed in the Making and renewing a tax credits claim, Changes in circumstances for tax credits and Notional income and anti-avoidance for tax credits guidance notes.
The remaining areas that need to be considered include:
penalties and interest
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
There are several sets of provisions in the Taxes Acts which relate to ‘close’ companies, most of which are anti-avoidance measures aiming to catch transactions between those companies affected and their owners, where there may otherwise be a tax advantage. Broadly speaking, most owner-managed or
The basic rule is that all benefits provided to an employee by reason of their employment are taxable unless there is a specific exemption or other rule that means they are not chargeable to tax.ExemptionsThe main exemptions for employee benefits are in ITEPA 2003, ss 227–326B (Pt 4).Below is an
Income and gains may be taxable in more than one country. The UK has three ways of ensuring that the individual does not bear a double burden:1)treaty tax relief may reduce or eliminate the double tax 2)if there is no treaty, the individual can claim ‘unilateral’ relief by deducting the foreign tax
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
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.