Taxation: Expenses and self-assessment Travel Expenses The Inland Revenue says
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the Finance Bill 1998 will simplify tax relief provisions for employees' travel expenses. The change will allow relief for the costs an employee has to incur in travelling in the performance of his duties, or to and from a temporary place of work, without the need to offset any savings made by avoiding ordinary commuting (as was required by the Finance Act 1997 provisions).
This will take effect from 6 April 1998 (the date for implementation of the original changes made in the Finance Act 1997).
Advance Corporation Tax It has been reported that the Government is to scrap Advance Corporation Tax (ACT). Instead, corporation tax will be payable on a quarterly basis, rather than nine months after the end of the company's financial year. This will be an advantage to large companies, especially those which pay large dividends, with most of their profit being earned overseas. However, small companies that do not pay dividends could be worse off because of the requirement to make payments quarterly.
Self Assessment The Inland Revenue has published two new self-assessment booklets detailing: • The deadlines for sending back tax returns and paying tax; • The consequences of failing to meet these dates, giving examples of what would, and would not, be taken as a reasonable excuse for failing to do so; • The system of appeal against penalties and surcharges.
Copies of SAIBK6: Self-Assessment: Penalties for Late Tax Returns and SAII3K7: Self-Assessment: Surcharges for Late Payment of Tax are available free from tax offices and income tax enquiry centres. Guidance The Institute of Chartered Accountants in England & Wales (ICAEW) has just published Part II of a question-and-answer guidance on self-assessment.
The guidance note follows a previous edition from the ICAEW which was issued in November 1996.
TAX 10/97 can be obtained (on receipt of a C4-size SAE marked with the reference "TAX 10/9T) from Accountancy Enterprises Dispatch, ICAEW, 21 Erica Road, Stacey Bushes, Milton Keynes MK12 6HS.