A very recent First Tier Tribunal decision was held in favour of a taxpayer, Mr Noor.

Mr Noor called HMRC’s National VAT helpline to take advice about construction costs.

He followed the advice given, but on his claim for a repayment of input tax HMRC denied a chunk of money under the rules about time limits for claims.

Mr Noor claimed that after taking the advice over the phone his expectation was that he would be able to claim all the VAT back if he followed the guidance suggested, which he did.

 In a very interesting decision HMRC believed Mr Noor in relation to the phone conversation, even though no written confirmation of the advice line’s comments was obtained.  They also held that he would have taken a different course of action if he hadn’t received the comments on the phone.

It was found that HMRC were due to pay the full amount of VAT back to Mr Noor.

Perhaps the life of the Advice Line is limited!

With the end of the tax year 2010/11 fast approaching there are several opportunities that will be gone come 2011/12.
Here are some of these opportunities:

  • Pension Contributions: As of 6 April 2011 the annual allowance for pension contributions will be reduced to £50,000 as opposed to the £255,000 in 2010/11. If you are considering making lum sump contributions to a scheme then it is important to take advice as soon as possible because other factors may affect your planning
  • Trusts & Estates: There is still a possibility for Capital Gains taxable on the settlor to be charged at the old rate of old rate of 18% even if the gains are realised after the 23 June 2010.
  • National Insurance Contributions: With an increase of 1% due in 2011/12, a bonus paid before the end of the tax year will make an effective saving, compared to the bonus being later.

If you require any help with your tax planning, please contact Eaves & Co at either our Leeds or Southport offices for an initial consultation.