Tips on saving tax, the latest tax and business news, tax loopholes and useful links

Gordon Brown confirmed this morning that the 2010 Budget will be held on 24 March 2010.

Given that a General Election is around the corner (we think 6 May is favourite) the Budget is likely to be more of a political announcement than an economic one.

A current case has in the European Courts has indicated that UK tax law that prohibits reclaiming the VAT on business entertaining costs may be invalid.  If this is the case, businesses can reclaim such VAT going back four years.

Once the case has concluded we will report the final decision.

HMRC has published details of changes to when you should pay your VAT bill if your method of payment is cheques.

this is all part of HMRC trying to encourage taxpayers to pay their bills electronically as it is less work for the Taxman.  As an incentive, you do get more time to pay if you use by BACS (7 days longer) or Direct Debit (10 days longer).

Of course, if you file your VAT return online you must pay the bill electronically.

From 1 April 2010, certain businesses will have to submit their VAT returns online.  Essentially these are businesses that either

• have an annual turnover in excess of £100k pa (exc VAT), or
• initially register for VAT after 1 April 2010. 

Full details can be found here:  http://www.hmrc.gov.uk/vat/vat-online/moving.htm.

6.4 million individuals have submitted their tax returns online this compared to 5.9 million for the previous year. 

We suspect this popularity is not so much people preferring to submit online as to do with the fact that the deadline for an online 2008/09 tax return, being 31 January 2010, is 3 months longer than the old style paper tax return deadline of 31 October 2009.

From 1 January 2010, to claim a refund of VAT you have paid in another EU county you must complete an online claim in the UK. You no longer have to battle with a multitude of forms in foreign languages, as the claim can be done entirely in English. The UK tax office will forward your claim to the relevant country, which will process the refund within four months of receipt. You should then receive the payment due within a further 10 days.

To make VAT refund claims in respect of VAT paid in other EU countries you (or your accountant) need to first register to use the Tax Office VAT EU refunds system, which is part of the VAT online service.

The minimum amount of the VAT to be included in each claim has been standardised at €400 per quarter.  For further information see VAT notice number 723A: Refunds of VAT in the European Community.

Arguably it is Adam.  He had a liking for figures and made the first ever “entry”.  However, he soon lost interest after the withdrawal and buggered up the monthly accounts which resulted in the first liability being raised.

Further to our earlier article on this subject, the Taxman has now announced details of a tax amnesty for medical professionals.  After this amnesty expires you can expect him to start using his information to launch investigations where he suspects foul play.

The amnesty offers a relatively low 10% penalty if you disclose by 31 March 2010.

We are often asked what income is taxable (and should be reported on a tax return) and what income is not taxable.  Here is a list of taxable and non-taxable income from the Taxman.

We have been advised that HMRC has identified ‘upwards’ of 800 hospital consultants to be investigated in 2010.  Up until now the motor and travel expense claims have been the primary risk areas identified by HMRC, but the emphasis will change next year.

HMRC has issued formal notices to BUPA, Sun Life and other institutions who pay commission to hospital consultants to identify enquiry cases where the commissions appear to have either been understated or omitted from Tax Returns.

We understand an amnesty may be offered, similar to that available to offshore bank account holders, but watch this space.