Tax Update - The human rights
Changes in VAT rules to staff costs, heritage assets and personal portfolio bonds.
Customs & Excise
‘Business Brief’ 20/98 (28 Sept) explains the new rules governing the conduct of employment bureaux. Customs is allowing a temporary extension of the staff hire concession allowing employment businesses not to charge VAT on the salary costs of staff if their client pays staff direct. More information is due in Spring 1999. Full release on Customs Web page
Chartered Institute of Taxation Submission sent on restriction of VAT groups to fully taxable corporate bodies on 30 September 1998 in response to Customs’ consultation document. Submission also sent on guidance notes changes to tax reliefs for heritage assets on 29 September 1998 in response to the Finance Act 1998. More details are available by calling 0171 235 9381 or visiting the CIOT Web page
English ICA Tax Faculty Two technical notes cover the faculty’s response to the Revenue’s proposed regulations on Personal Portfolio Bonds (TAX 24/98) and the response to the proposals on VAT grouping (TAX 25/98). For more details call 0171 920 8646 or visit the ICAEW Web page
Other news The charity TaxAid is running a one-day conference on Tax and Human Rights on 16 November. This will consider the forthcoming Human Rights Act and how it will affect clients. Telephone 0171 624 5216 for more details. The latest deadline for self-assessment is 5 October, by which date charge-ability to tax for 1997/1998 has to be notified to the Revenue if no tax return has been received, under section 7 of the Taxes Management Act of 1970.