Another tax avoidance scheme has been declared ineffective by the tax tribunal. An accrued income scheme tried to save income tax by exploiting a mismatch between the provisions on taxed interest and those on manufactured dividends. Barnes v HMRC. TC 972 [2011]Read More

The retail prices index for March 2011 is 232.5, where January 1987 = 100. HMRC has published indexation factors for disposals in March 2011 for acquisitions for every month from March 1982. These indices are still needed for corporation tax. For an asset acquired in March 1982, the index is 1.927.Read More

The government is consulting on whether to allow fathers another month of paternity leave from 2015. The additional month could be taken at the same time as the mother’s maternity leave. It is also proposed that maternity and paternity leave could be taken in chunks and not in one absence as now. Currently, a mother...Read More

Britons have spent more than £1 bn downloading music since 2004. About one third of this was in 2010. Downloads now account for about one sixth of all albums, and 99% of “singles”.Read More

A poor person on benefits pays more tax on additional income than a millionaire. If someone on tax credits earns an extra £1, they are likely to pay another 20p income tax and another 12p national insurance from April 2011. That leaves them with 68p. However their tax credit is reduced by 41% of this...Read More

From April 2011, the availability of crisis loans is reduced. These loans are part of the safety net of the social security system. From April, such loans will no longer be available for cookers, beds and some other items, with a few exceptions for people recovering from a disaster. The rate paid for living expenses...Read More

From 2012, social security will no longer be paid by cheque. Already many claimants are paid by direct credit transfer into a bank or Post Office account. Claimants who do not have such an account may use a PayPoint outlet to receive money over the counter. These outlets are widely found in newsgents and community...Read More

HMRC has announced plans for new task forces to tackle tax evasion. The task forces will concentrate on areas which are seen as vulnerable to tax evasion. The first target will be restaurants based in London. It then plans to investigate restaurants in North West England and in Scotland. The task force combines existing compliance...Read More

A miscarriage of justice occurs when a new fact so undermines the evidence against a defendant that no conviction could possibly be based on it. This ruling was given by the Supreme Court on 12 May 2011 in the case re MacDermott’s and McCartney’s Application. The definition is used in determining claims for compensation under...Read More

The US national debt stands at $14 trillion, close to its legal limit above which parts of the government start shutting down. President Obama gained a very high 52% approval rating for his handling of the US economy. There is cross-party consent to reduce the debt by $4 trillion over ten years, but the main...Read More