Year End Tax Review 2010/2011


Lead articles

Looking forward

This year, next year

Rate of change

Pension merry-go-round


Too much NIC

NIC and pensions

Company cars

Tax-free benefits

Childcare vouchers

Business - General

Time to incorporate?

Associated or not?

His and hers

Family bonus

Profit and loss

Show me the money

Can't pay, won't pay?

Turning back the clock

Business - VAT

Standard VAT or flat VAT?

VAT's up again

All Europeans now

A good start for VAT

Happy returns?


Top-up savings

Rainy day money

Capital Gains

Gains favoured

Splitting gains

A place in the country

Holiday lets reprieved


Family fortunes

Where there's a Will

Credits and debits

Benefit going

Piggy banks

Still trustworthy?


Penalty shoot-out

Going online

Paperwork, paperwork

Pay tax later

Opportunity knocks again


Give and save

Non-Domiciled People

Home and away


Interesting times

Can't pay, won't pay?

HMRC have in the past been criticised for being too ready to close a business down if it could not pay its tax: since late 2008, it has been official policy to be flexible and to try to keep the business going. Delaying a payment to HMRC is likely to be easier and cheaper than extending a bank overdraft.

There are conditions: the taxpayer must be in genuine financial difficulty, and it must be likely to be able to pay if given more time. It is worth having detailed financial information to make a case to HMRC. If the business has no prospect of ever paying the liability, they are likely to take the usual enforcement action and cut their losses.

There are some major concessions: if you agree a "time to pay" arrangement before VAT falls due, there are no default surcharges to pay. A construction industry business can defer tax without losing entitlement to be paid gross.

The important thing is to be prepared. The business is supposed to put a proposal to HMRC before the due date - not wait until HMRC are sending red letters for overdue tax.

Action Point!
Could you make a case to HMRC for easy terms on business tax payments?