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Tax return errors by individuals are not uncommon but unfortunately can have serious consequences.
For example, HM Revenue and Customs (HMRC) can impose penalties for inaccuracies in tax returns. The level of penalty broadly depends on whether the inaccuracy was ‘careless’ or ‘deliberate but not concealed’ or ‘deliberate and concealed’, subject to reductions based on the degree to which the person discloses the inaccuracy to HMRC. 

Mark McLaughlin highlights an important case which indicates a limitation in the scope of certain HMRC powers.

For the young, talk of pensions may seem a low priority given the competing financial demands of housing, student loans and living costs. Retirement planning can feel distant and complicated, and tax changes, rumoured and real, such as potential inheritance tax liabilities and possible reductions in tax-free lump sums, may cast further doubt on future returns. 
 
Richard Curtis considers whether saving in a lifetime individual savings account is a viable alternative to a pension.

If a business is run from home or has an office at home, it is entitled to claim back the VAT on any legitimate business expenses. This means that if the business incurs extra costs in running the business from home, it can reclaim the VAT on those costs, as well as a proportion of the running costs of the house.

For example, if a company’s business operates from a director’s home and the office takes up 20% of the floor space of the house; HMRC will allow it to reclaim 20% of the VAT on the utility bills such as gas and electricity.

Andrew Needham looks at the VAT consequences of working from home and what a business can and cannot recover VAT on.

Many people have excess yearly income, which can usefully be classed as gifts of income and as such can form excess ‘normal expenditure’ out of income within IHTA 1984, s 21(1). 
In effect, if it can be shown as an excess of income surplus to requirements for the usual standard of living and gifted, it is exempt from inheritance tax. 

Jon Golding looks at the exempting of IHT gifts made out of excess normal income claims to reduce an inheritance tax liability.

Investment bonds are a tax-efficient way to hold investments, similar to other ‘wrappers’ (individual savings accounts, pensions, etc). With increasing capital gains tax (CGT) rates, they are worth considering – particularly for higher earners planning for retirement. 

Investment bonds are established with an insurance company and funded with a lump sum or regular cash contributions. The contributions are usually invested into funds (unit trusts, exchange-traded funds, etc.), which can be accessed at any time through full or partial surrenders. 

Tristan Noyes looks at investment bonds, an often-overlooked investment wrapper. 

For married couples and civil partners, one of the simplest and most effective tax planning tools is the ability to transfer assets between each other without triggering an immediate tax charge. Whichever tax is being considered, inter-spouse transfers can lower a household's overall tax bill. 

However, some important conditions apply (NB in this article, spouses also refers to civil partners.

Jennifer Adams considers how inter-spouse transfers can help married couples and civil partners reduce their tax bills and highlights the key rules and conditions that apply.

Within a death estate and an IHT400 account, the value of liabilities can generally be deducted when calculating the IHT liability (under IHTA 1984, s 5(5)). 
Debts which are allowable for inheritance tax (IHT) purposes have to be either debts imposed by law (tax being the most common, but also local taxes such as council tax, and fines), or debts which the deceased purchased for money or money’s worth. One criterion is that the debts must be legally enforceable (unless statute-barred, including student loans) – they cannot be loans which might only be morally enforceable or if there is no written evidence. Another criterion is that the debt was actually to be repaid by the estate unless there was a good commercial reason and the main purposes (or one of them) for leaving the loan unpaid was not to secure a tax advantage.

Chris Thorpe outlines some of the issues surrounding deducting loans for inheritance tax purposes.

The employment-related securities legislation deals with arrangements involving shares and securities provided by reason of employment where the full value of the employment reward provided to the employee is not included in the salary package and is charged to tax.  

Jennifer Adams considers the tax implications of shares in a family company being awarded or gifted to family members of employees. 

A sole trader looking to expand their business might be weighing up the ‘pros’ and ‘cons’ of a partnership or a limited company. They are very different, with not only very different tax consequences, but functions as well. 

Chris Thorpe looks at partnerships and companies and considers which business model might be best.  

Under the loan relationships rules for companies, debits on loan arrangements are not deductible for corporation tax purposes in some circumstances.

Kevin Read highlights a recent case concerning the loan relationship rules for companies. 

When HM Revenue and Customs (HMRC) opens a tax return enquiry, the natural reaction of most taxpayers is to speculate about the reason why their tax return has been selected. In fact, HMRC does not need an excuse to open a tax return enquiry; a small proportion of tax returns are simply selected at random. . 

Mark McLaughlin looks at whether a taxpayer can find out if an HMRC enquiry has been opened as the result of an accusation made by a third party. 

When considering the tricky matter of remuneration planning, there are two things to consider; the amount of remuneration, and what form it takes. 

Chris Thorpe looks at what to watch out for with regard to paying employees and directors.

Despite the reduction in National Insurance contributions (NICs) in Spring Budget 2024, more employees are paying tax at higher rates on their earnings due to the freezing of tax thresholds. Some may find that any pay rise or bonus attracts additional tax and NICs such that the net pay increase is minimal.  

Jennifer Adams looks at some alternatives to rewarding an employee with a pay rise or a bonus. 

Mark McLaughlin looks at company purchases of own shares and warns not to become too focused on the more difficult rules for capital treatment. 

A company purchase of its own shares from a shareholder is a popular ‘exit’ strategy when an individual shareholder is retiring, or a dissenting shareholder is departing.