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A separate business
An appeal came before the VAT tribunal where Customs and Excise were submitting that two businesses should be combined for VAT purposes. In this instance an assessment of £12,674 together with interest of £1,543.60 was at stake.
The appeal was made by the freehold owner and sole licensee of the King's Head public house at East Hoathly, near Lewes, East Sussex. The accompanying agreed bundle of documents and correspondence ran to over 200 pages.
A valid separation
One of the issues which raises the ire of Customs and Excise is the idea that two linked businesses are operating separately in order to avoid VAT registration. The most well known scenario is, of course, the hairdressing salon and the self employment of the various stylists into separate businesses.
THE ACTIVITIES OF the Low Income Tax Reform Group have, quite rightly, earned many plaudits, and recently earned one of Butterworths Tolley's tax awards. TaxAid should also be commended for its ongoing campaign to obtain bereavement allowance for widowers.
Despite reports of the vast incomes earned by professional footballers, city traders and others, there are still many people surviving on modest earned incomes. Others earn modest amounts from part-time self-employed activities.
Record Problems
JOHN T NEWTH FCA, FTII, FIIT, ATT investigates the minefield of small business accounts and records.
One of the phrases which the Inland Revenue uses in its literature, and of which it is very fond, is 'the correct amount of tax'.
The writer has no problem with this concept when it is applied to 'absolutes' such as pensions, dividends and interest received. These sources of income can be exactly defined, and verified from documentary evidence.
Company Confirmed Guilty
The case of McNicholas Construction Co Ltd v Commissioners of Customs and Excise is considered.
Special Commissioners Cases
John T Newth FCA, FTII, FIIT, ATT summarises two recent cases heard by the Special Commissioners.
Expensive 'Freebie'
The former owner of the Freebie magazine appealed against two assessments to capital gains tax for the years 1988-89 and 1989-90, each in the sum of £284,468.
After the October 1987 stock market crash, the magazine got into financial difficulties. The appellant also needed money to complete the purchase of a property and to refurbish another property.
Non-Residence A Beginner's Guide
John T Newth FCA, FTII, FIIT, ATT investigates law and practice regarding non-residence for tax purposes.
As United Kingdom tax legislation continues to proliferate, it is strange that certain subjects are not dealt with in detail, or indeed not at all, in the Taxes Acts. A typical example is self-employment. Another important example is non-residence for individuals.
