Newsletter 18th March 2024
Where do the weeks go? it only feels like I was just finalising the last few tax returns and now I am preparing for the start of the new tax year, which is only a few weeks away (6th April). I was hoping for a few weeks of calm and some catching up on those administrative pieces of work, although you would think that I would know better after 25 years in tax that this was never going to happen.
It's not just the average taxpayer who finds themselves in hot water with HMRC, as a few celebrities have found themselves with the spotlight firmly on them over the last week.
Do you know It's not just tax advisors who are busy in March, it's also the financial advisors with their tax advice.
Grab that coffee and let's begin.
Under the spotlight
The week started with the actor that we have all grown up with William Roach (Ken Barlow) of Coronation Street fame in trouble with HMRC once again. Ken aged 91 owes approximately £540K after admitting the liability back in 2018, he has to date managed to settle £40K of the initial debt. HMRC have allowed him three months to settle the debt, which reportedly will be settled through a house sale.
Ken got into issues with the tax man after making a £1.75 million investment into a tax planning scheme in the Cayman Islands which the HMRC called a “tax dodge” and the Treasury referred to as “abusive and artificial”.
The case is back in court on 10th June.
MP Angela Raynor is also in dispute with HMRC regarding a Capital Gains Tax Bill arising from the disposal of her council house which she bought in January 2007 for £79,000 and subsequently sold for £127,500. The dispute revolves around her main residence and exemption from tax. The team at Tax Matters have come up with a solution, so make sure you keep an eye on my LinkedIn feed this week to find out more.
Professional footballer Oumar Niasse has lost his appeal for unpaid taxes and late submission penalties. HMRC issued notices for 2015/2016 and 2016/17 for £76,410 and £76,463 respectively, in addition, a penalty notice was issued in the sum of £5,262 for late filing of a tax return in 2015/2016.
With a total liability due to HMRC of £158,135. Niasse argued that the was paid under PAYE and that a tax return was not required, however, the First Tier Tribunal did not agree.
In addition, Oumar attempted to claim expenses from his income normally only available to those in the entertainment industry and again the FTT found that he was not an entertainer and those expenses were not allowable.
Throughout the case, it was argued, that he may not have received initial correspondence from HMRC as he had split with his wife and moved from Everton to Cardiff and then Hull.
Judge Greenbank summed up by saying: ‘Mr Niasse is a professional footballer. He was supported by professional advisers He had not inconsiderable income and yet failed to obtain relevant advice and file his returns despite these promptings”
I wonder who will fall under the spotlight this week?
Time is running out
I know you have heard me say this before, well the truth is it quite often is when it comes to planning for your taxes. This week I have been speaking with numerous financial advisors and their clients to establish if there is any scope to make additional payments to their pension pot.
As you can imagine with tax it's not as straightforward as you might imagine as there can be obstacles on the journey. Although it is commonly known that you can pay £60,000 into your private pensions, there is a threshold limit where the maximum contribution is not available.
Although there may be unused allowances from earlier years that can help.
In my recent article Tax Relief on Pension Contributions, I discuss all you need to know.
I hope you have enjoyed this edition of my newsletter, and found it both enjoyable and informative, if you have any suggestions or comments then please let me know it is always good to hear from you. In addition to the newsletter, I am also updating the website, so please take a look from time to time to see what is happening.
If I or the Tax Matters team can be of any assistance to you, your family or your friends then please do not hesitate to contact me at 01442 828006 or jreeves@taxmatters.tax