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21 July 2015
Put your client admin into motion.
- Note that HMRC will require all new time to pay contracts to be met by direct debit. Remember to make clients who wish or need to set up such an arrangement aware of this so they can ensure their account will permit direct debit.
- The decision for the taxpayer in Mahendran (TC4470) demonstrates the value of clients maintaining comprehensive records of communications with their adviser (and HMRC). It might be worth reminding clients of this in general.
- From April 2017, the proposed digital account should enable construction industry subcontractors to see how much tax has been deducted from payments to them by contractors.
- Ensure that a permanent file note is made of clients who have been a member of the armed forces or emergency services, or a paid or volunteer aid worker in case they qualify for the IHTA 1984, s 153A, s 154 or s 155A exemption.
- If HMRC issue a Sch 36 notice for a client, make sure that the documents required are appropriate and, if they contain personal information, consider lodging an appeal bearing in mind the First-tier Tribunal’s decision in Smith (TC4392).
- Advisers should note that if a liability on an estate is not repaid after probate has been obtained, HMRC will expect personal representatives to amend the inheritance tax return accordingly.
- If a property is let out and the rent charged is below the market rate, any expenses are restricted to deduction from rent on that property and for that year only.
