t: 0141 556 5348
e: mail@ngmaccountants.com

Latest news

Size is not everything

One of the penalties of being an accountant is having to keep up to date with the latest in taxation and in case you maybe hadn't heard, the UK's tax laws are among the most extensive and complex in the world.

That means of course that far from making it easy to get a simple answer to a simple question, it is sometimes difficult in figuring out what the question is. Even if you know what the question is the HMRC website (which must rank alongside bbc.co.uk in terms of its size) the chances of the search engine taking you to anything close to the answer are remote in the least.

So while I'm puzzling this one out why don't you have a go? Wouldn't it be interesting to see what your view of natural justice would be?

So here's the story:

A professional model became involved with a high profile individual and news of their affair eventually leaked to the press. The gentleman paid a very large sum of money (£250,000) to the lady for her silence as regards the press interest in the story.

To make it easy, I'll give you just two options to consider...

  1. Is it a gift and so not taxable?
  2. Has a service been provided - even if that is to do nothing?
  3. As the model is VAT registered, should VAT have been charged on the payment?

Leave a comment to let me know what you think the answers are to the questions. I'll publish the right answer in a week or so and there could be a wee something in it if your view of natural justice matches with the tax law!

Tags: HMRC

Comments: 1 (Add)

Your name:
Message:
Enter : [?]
 
Connie on December 30, 2011

Well done article that. I'll make sure to use it weisly.