Previously we wrote about a controversial proposal by HRMC to make it an automatic criminal offence to hold any undeclared taxable income offshore.
It seems as though HMRC are backing away from this proposal, which many commentators have welcomed, as it has been omitted from the draft Finance bill which was published earlier this month.
The worry by some tax experts was that these potential powers could be used to prosecute taxpayers who had made oversights and mistakes as opposed to fraudulent behaviours, which could have resulted in up to six month in prison.
Whilst this may not be the end for this proposal, it is definitely on HMRC’s back burner.
If you have been paid a bonus and your employer reclaims it through your contractual obligations, rather than a breach of contract then you may be able to claim income tax relief of the amount reclaimed.
There has been a recent tribunal case involving Julian Martin and a signing on bonus, which he had to repay when he left his employment after a year. The sum involved was higher then the amount he received. The tribunal case was found in the tax payers favour.