Brian McGuire outlines some of the pressing and current issues impacting on corporate and personal allowances
Place of supply
HMRC has issued Revenue & Customs Brief 22/12: The Place of Supply of Services Connected to Land. It contains details of changes to HMRC policy regarding exhibition stands, storage and warehousing, and access to airport lounges.
As the brief states: 'Article 47 of the EU VAT Directive makes the service subject to VAT in the country where the land is situated.'
So, if the land is located in the UK, then UK VAT will be due. VAT may then be recovered by business customers. A number of businesses had suffered double taxation because of different treatment by EU member states. The brief goes on to state that HMRC is changing aspects of its policy on the place of supply of:
- stands at exhibitions;
- storage of goods;
- airport lounges.
The brief then considers what is meant by land and when a service is related to land. It provides examples of services relating to land and examples of services not relating to land. The key points above are also explained in the brief. It then concludes by stating that businesses will have three months to change the treatment and highlights that refunds might be due under restrictive circumstances.
For further information visit: www.hmrc.gov.uk/briefs/vat/brief2212.htm.
HMRC'S Tax Return Campaign
HMRC is reminding people who have not submitted their tax returns for 2009-10 or earlier to come forward and take advantage of the tax return campaign as the deadline is fast approaching - October 2, 2012.
This campaign is focused on higher-rate taxpayers, employed or self-employed, who should have returned other forms of income, such as bank interest or dividends to help them bring their tax affairs up to date.
There are a number of consultations closing in October and November including the consultation on vulnerable beneficiary trusts which closes on November 8, 2012.
It is the suggested solution to the changes for many existing and future trusts brought about by the 2013 benefits change from Disability Living Allowance (DLA) to Personal Independent Payment.
As the consultation states, the DLA criterion has been used to help define vulnerable beneficiary trusts and the impact of the changes will need to be considered. The consultation suggests the way forward as well as considering trusts that may no longer qualify as vulnerable beneficiary trusts and consequently would not receive the current favourable tax treatment.
HMRC has issued updated and new compliance check factsheets to help taxpayers understand HMRC's powers and taxpayer safeguards.
The factsheets provide a useful overview of the key processes of a compliance check which is how HMRC checks that your tax is correct.Updated factsheets can be found at: www.hmrc.gov.uk/compliance/factsheets.htm.
The UK's Transfer Pricing legislation details how transactions between connected parties are handled.
HMRC has rewritten and reordered the transfer pricing manual, creating a structure that is both more intuitive and logical. The changes for users are significant including the old page numbering system which has been replaced by a different scheme. HMRC has provided a derivation and destination table to help readers navigate the new guidance.
For further information visit: www.hmrc.gov.uk/manuals/intmanual/INTM489030.htm.
Brian Maguire is from the Ulster members network of the Association of Chartered Certified Accountants