Following discussions at the Personal Taxes Sub-committee meeting in June this year the CIOT raised with HMRC the matter of the withdrawal of Board and Lodging Adjustments for Hotel/Guest House Proprietors in Working Together Bulletin 25. We were particularly concerned about the retrospective nature of the withdrawal. We are therefore pleased to see the following announcement on the HMRC website, posted on 26 July 2006 under "What's New".
"Board and lodgings adjustments
"Local agreements with hoteliers, tourist associations and tax practitioners
"Working Together issue 25 included an article explaining that we would withdraw from local board and lodgings adjustment agreements for hotels and guesthouses. We said that this would apply from 2004-05 (Returns with a filing date of 31 January 2006).
"Since withdrawing these agreements, we have received many representations. In view of these concerns, a consultation process is underway to review the impact of withdrawing these agreements within the Department and on our customers.
"As a temporary measure the agreements maybe extended to include the 2005/06 Returns by contacting the Area with whom you had the original agreement.
"We intend to publish the results of our review on our website shortly. We will let you know when it is available."
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We will continue to monitor developments in this area and welcome feedback from members on this issue. Please send this to: technical@tax.org.uk with ‘Board and Lodging Adjustments ’ in the subject line of your message.
Technical Department
020 7235 9381
