Computer's can't do everything
Most commentators would accept that if a tax return is submitted late then – unless there is a genuine reasonable excuse – HMRC should quite rightly be able to impose a penalty. However, what happens if a computer makes this decision?
Landlords: beware when incorporation sounds too good to be true
The internet is awash with information for landlords on the benefits of incorporation, but the promised tax reliefs will not be available to all. Landlords are therefore advised to seek advice relating to their own specific circumstances before rushing to incorporate. Unfortunately in tax if something sounds too good to be true, it usually is.
'Software glitches' doesn't bode well for Making Tax Digital
We commented recently on problems with HMRC’s tax return software for 2016-17 and the fact that tax was wrongly calculated for certain combinations of income. The issue has come up again following a recent tax tribunal, but what does this mean for the digital future for tax?
Why does tax on reward current accounts have to be so taxing?
Those with a reward current account will probably have received a tax deduction certificate showing that the reward payment has had basic rate tax deducted at source. Such payments are not considered as interest and therefore do not benefit from the Personal Savings Allowance (PSA). If you are a non-taxpayer, you can recover the basic rate tax deducted but for those within the higher and additional rate bands, the reward payment and the tax paid should be included on your tax return. Does the UK tax system really need to be this complicated?