Making Tax Digital – it's getting nearer.
In exactly two years time the most fundamental change to the administration of the UK tax system for at least 20 years will have commenced. Making Tax Digital for income Tax (MTD for ITSA) will apply to all self employed businesses and landlords with business and/or property income of at least £10,000 as from April 2024. The first quarterly updates will be due for filing by 5 August 2024, covering either the quarter ended 5 July 2024, or 30 June 2024 (where a calendar quarter election is in place allowing quarterly updates to the end of the previous month).
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With tax revenues down and a significant budget deficit arising from the Covid-19 pandemic, it will not come as a surprise to learn that HMRC are looking to undertake more enquiries into taxpayer's affairs than ever before. For example, HMRC has a specialist 'Offshore Co-Ordination Unit' department staffed with analysts, technical tax experts and experienced investigators.
However, not only persons with offshore interests can attract HMRC's unwanted attention. The ability of HMRC's Connect database to identify links between businesses,
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On 15 December 2021 the government passed an Act which at the time was effectively 'under the radar' for many company directors but could have far reaching implications should their company be dissolved with outstanding tax liabilities.

The Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Act 2021 was enacted to enable the Insolvency Service to apply for a court order requiring a former director of a dissolved company, who has been disqualified,
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A chargeable gain may arise on the sale, disposal or transfer of a residential property if that property has not been the seller's only or main home throughout the period of ownership. Here we are looking at investment property, such as a buy-to-let, a holiday let, or a second home. Any UK resident, trust or estate who sells or gifts UK residential property at a gain is required to calculate, report and pay any capital gains tax (CGT) due within 60 days of completion of the sale. Companies are not subject to these rules.
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Q. I have prepared my 2022 tax return for submission but on reviewing previous returns I found that I made an error when completing the 2018/19 tax return, resulting in an overpayment of tax. Can I get my money back? Answer

Q. I am the director of my company and one of my employees is getting married next month. I want to pay for the cost of the honeymoon night and taxi that they will use to travel to the airport. The company has an account with a local taxi business. Are there any tax implications for the employee and can the company claim tax relief? Answer

Q. A couple of years ago I self-built a bungalow in my back garden intending to sell on the open market but since then my son and daughter in law have split up so I am now looking to sell the property to him but at a lower than market value. The bungalow cost overall £280,000 and is now valued at £520,000. My son can only afford to pay me £375,000. What are the capital gains tax (CGT) implications? Answer