The Finance Act 2008 introduced a number of changes to the taxation of individuals with residence or domicile issues. From 6 April 2009 tax payers affected by these changes should note the following recent announcements by HM Revenue & Customs: (If you would like more details please call.)
1. New HMRC Guidance
A number of new guidance manuals will be available from this date, or shortly after this date, covering residence and domicile issues.
2. Change of forms
A number of the past standard forms have been withdrawn or changed.
3. Enquiries into domicile status
For 2008-09 and later years enquiries will be started by an enquiry into the taxpayers self assessment tax return.
4. Remittance basis
An individual, who is entitled to claim the remittance basis of taxation but whose total unremitted foreign income and gains is less than £2,000 in any tax year, can use the remittance basis without having to make a formal claim.
5. £30,000 Remittance basis charge
Most individuals who pay the £30,000, or have paid it in the past, will have their tax affairs dealt with by a specialist CAR Residency office, Nottingham from 2009-10.
6. PAYE and ‘not ordinarily resident’ employees
Employers can still seek clearance to not apply PAYE to certain employees who fall into this category.