New guidance on the controversial issue of tax rules for ‘non-domiciled’
residents in the UK is confusing and could result in people paying too much tax,
PKF has warned.
HM Revenue & Customs’ 400-page guidance, published last month, outlines
tax rules for self-assessment taxpayers who classed as non-domiciled in the UK.
The rules came into force on 6 April.
PKF, the top 10 firm, said some of the guidance appeared to introduce rules
or take a harder line on non-doms.
Matt Coward, director of personal tax services at PKF said: ‘As far as
individual taxpayers are concerned this guidance is too much and too late – as
well as being potentially misleading.
‘Some paragraphs of the guidance seem to introduce new elements to the rules
established through case law – at the very least this could lead unrepresented
taxpayers down the wrong path.’
The non-dom tax, introduced last year, charges a £30,000 levy for people who
have lived in the UK for more than seven years but do not pay UK tax on their
income and gains because of non-dom status.
Previously, individuals submitted a form to HMRC, which then decided if they
would be classed as non-doms for tax purposes.
Under the rules taxpayers will have to decide whether they are domiciled in
the UK for tax purposes when submitting the self-assessment returns to HMRC,
which can challenge this decision.
HMRC was unavailable for comment as Accountancy Age went
Making Tax Digital will impose significant additional tax compliance costs on small businesses for little or no medium term benefit, tax and small business experts told MPs
The drive towards a fully digital tax regime is an admirable one, but mandation is simply wrong, according to one of the UK's most senior tax technology practitioners - Paul Aplin
Crowe Clark Whitehill , the top 20 accountancy firm, has announced the promotion of Chris Mould to partner
HMRC has won its tenth successive case against tax avoidance schemes promoted by NT Advisors. The Court of Appeal has ruled that NT ... read more