TAX NEWS: HMRC to standardise tax treatment of add-backs. By Nichola Ross Martin
In a move to standardise the tax treatment of some add-backs for disallowed items, HMRC have announced that the informal practice by local offices of allowing agreed fixed scale add backs for private use of accommodation, facilities and food for hotel and guest house owners will now be stopped.
Many practitioners may not even realise that there was a practice by some local offices of allowing a fixed scale rate of add backs for proprietors in the any trade. The practice grew up out of common sense and necessity.