Spring 2009 Newsletter Content Oh for a little hindsight Can't pay, won't pay? Shock in Essex Car tax You signed it Don't be late Age before beauty? IHT and falling prices More paper Shopping around Less paper PAYE or not PAYE... Flat rate scheme A change of heart There are limits Do your duty Free lunch VAT a mess Dissatisfaction guaranteed Don't believe it! Too late Tax on tick £100 note Temp reminder

There are limits The Pre-Budget Report included the welcome announcement that the Government has decided to put its attack on husband-and-wife businesses on the back burner. After HMRC lost a dispute involving Arctic Systems Ltd, they promised that they would bring in changes to the law enabling them to tax the main earner on income that a jointly-owned business paid to someone who was "not really earning the money". Apart from stopping some useful tax planning, these rules promised to be a nightmare to operate. We may not see them again for some years. Several recent cases are a reminder that the existing rules are enough to stop a complete free-for-all. A man claimed that his grandchildren were partners in his business - there was no evidence to support this, which is not surprising as they were between 7 and 10 years old. Costs of the appeal were awarded against him. In another case, parents arranged for dividends to be paid to their young children, and the settlements rules - which failed to bite on Arctic Systems - meant that they remained taxable on the income. In a third, a man waived his entitlement to a company dividend so that a bigger amount could be paid to his wife. Again, that was caught by the rules as they stand. Husband and wife tax planning can provide routine and legitimate savings, but you need to know what works and what doesn't. We can draw the borderline for you.