HMRC tax toolkit 2010-11 updates

HMRC has started to roll out 2010-11 updates of its tax toolkits, starting with those covering National Insurance Contributions and Statutory Payments, Property Rental, and Capital v Revenue Expenditure.

The toolkits are designed to highlight common errors and the steps that can be taken to avoid them. The kits usually consist of a checklist, explanatory notes and links to further guidance. The kits do not have any statutory powers behind them, and their use is entirely voluntary. But they can help demonstrate that "reasonable care" has been taken in preparing a tax return. HMRC said.

Following the release of the firsthe following toolkits will be updated and published by the end of June:

  • Capital Allowances for Plant and Machinery
  • Capital Gains Tax for Land and Buildings
  • Capital Gains Tax for Trusts and Estates
  • Directors’ Loan Accounts
  • Private and Personal Expenditure
  • Trusts and Estates
  • VAT Input Tax

The current Expenses and Benefits from Employment Toolkit relates to 2010-11 and will be updated for 2011-12 after the 2010-11 P11D filing date (6 July 2011). The Marginal Small Companies' Relief Toolkit will be updated once royal assent is given for Finance Act 2011 to include the revisions to s27 Corporation Tax Act 2010 that will apply to accounting periods ending on or after 1 April 2011.

Anyone who used 2009-10 toolkits should keep an eye out for the 2010-11 to ensure that any recent legislative changes are taken into account, HMRC said.

A total of 19 toolkits have now been released, and a Business Profits toolkit scheduled for release alongside the 2010-11 updates in late June will bring the total up to 20.