Tax / Budget 2017: taxing royalties and IP will hit digital giants

The plan to tax royalties posted overseas on the back of UK-based sales from April 2018 sets a clear pointer in terms of the government's general approach to clamping down on aggressive tax planning by the digital multinational giants like Amazon, Apple and Google. Philip Smith asks whether the Budget proposal will work

Tax / Cullinane: Chancellor’s approach to policy must be more consultative

As the Chancellor leans on anti-avoidance and evasion measures to raise revenue, CIOT tax policy director John Cullinane raises concerns over the way some policies in the Budget were formed

Tax / Budget 2017: key corporation tax changes for business

Paul Davies ACA, specialist tax writer at Croner-i, gives a round-up of the key changes to corporate taxes announced in the Budget, from freezing the indexation allowance on chargeable gains to the increase in R&D relief and tightening of the corporate interest restriction rules

Tax / Budget 2017: capital gains tax - key measures

Stephen Relf CTA FCA reviews the Budget announcements affecting capital gains tax and business-related CGT increases, including changes to depreciatory transactions and freezing the capital gains indexation allowance at CPI

Tax / Budget 2017: amendments made to hybrid mismatch regime

Elements of the hybrid mismatch regime are to be amended, it has been confirmed in the Budget, although the changes are not intended to alter the scope of the scheme

Insight / Eight-year bankruptcy restriction on Lincoln accountant

The Insolvency Service has published details of an eight-year restriction on Lincoln accountant Russell Payne for failing to disclose to the Official Receiver that he had disposed of assets in the lead up to his bankruptcy over £4.5m of debt

Tax / Budget 2017: time limit for depreciatory transactions removed

The government has moved to prevent companies waiting for the six year limit for reporting depreciatory transactions to elapse, it has been confirmed in the Budget

Tax / Budget 2017: points-based penalty system for late tax returns

Plans unveiled as part of the Budget papers to move to a points-based penalty system for late or missing tax returns have been criticised by the Association of Taxation Technicians (ATT), over concerns the decision could result in unintended consequences, particularly when the Making Tax Digital regime starts

Tax / Budget 2017: ‘step up’ scheme avoidance using intangible fixed assets curbed

The Budget included a measure clarifying the corporation tax treatment of  the disposal of intangible fixed assets, designed to tackle ‘step up’ tax avoidance schemes by bringing the rules for all non-cash disposals and related party licensing arrangements in line with cash transactions

Tax / Budget 2017: offshore investigation time limits extended

The government has outlined plans in the Budget to increase the time limits for assessing all offshore case of potential tax avoidance to at least 12 years where non-compliant behaviour is involved, with a consultation on this in spring 2018

Tax / Budget 2017: rather more than first meets the eye

Mark Cawthron LLB CTA assesses the first autumn Budget in 20 years, outlining the key measures and stressing that a far from radical Budget actually disguised a number of significant tax measures 

Tax / Budget 2017: employment tax at a glance

Julie Clift CTA reviews the key changes to employment tax in the autumn Budget from company car tax changes to plans to widen the reach of IR35 legislation to the private sector and measures to tackle disguised remuneration

Tax / Budget 2017: what’s new in property taxes

Croner-i tax experts review the key property tax measures announced in the autumn Budget from CGT on non-residents’ gains to ATED rises and stamp duty abolition for first-time buyers purchasing properties valued under £300,000

Tax / Budget 2017: avoidance and evasion priorities for government

Meg Wilson CTA, specialist tax writer at Croner-i, unpicks the key avoidance and evasion measures announced in the Budget including disguised remuneration, abuse of the NICs employment allowance and related party schemes involving intangibles

Tax / Autumn Budget 2017 Insight Report - FREE download

Written by our expert team of tax authors, the Croner-i (formerly CCH) 2017 Autumn Budget Insight Report delivers expert opinion and commentary on the latest major tax changes 

Tax / Dodwell: the iceberg Budget

There was little in the way of substantive announcements in the Budget and many with an arguably small impact on Exchequer but significant changes lurk beneath the surface, warns Bill Dodwell, head of tax policy at Deloitte

Insight / Commission to investigate books charity over financial concerns

The Charity Commission has opened a statutory inquiry into Grove Mountain, and has frozen its bank accounts, over financial concerns at the charity, which provides books to the Caribbean for educational purposes

Tax / Budget 2017: £400m investment to spark electric car uptake

The government has committed to an expansion of electric cars on UK roads by announcing a £400m investment to provide more roadside charging points and has put a further £100m in to the Plug-In Car Grant to help individuals purchase an electric vehicle

Tax / Budget 2017: end to graduates overpaying student loans

University graduates will no longer temporarily overpay hundreds of pounds on their student loans as Chancellor Philip Hammond announces changes to the student loan and HMRC systems

Tax / Budget 2017: £165m investment to develop UK’s maths skills

The government has pledged to invest millions of pounds in to maths development and training programmes to help prepare the next generation of accountants and bankers for the new economy post-Brexit

Tax / Budget 2017: days of single-use plastic numbered

In the Autumn Budget, Chancellor Philip Hammond announced a raft of measures to improve the environment such as investment in electric cars and tax breaks for employers who provide electricity for employees to charge their ultra-low emission vehicles

Tax / Budget 2017: changes to double taxation relief TAAR

The Budget included proposals for two changes to the double taxation relief targeted anti-avoidance rule (TAAR), in a bid to bring it into line with similar anti avoidance measures and to cut down on abusive arrangements

Tax / Budget 2017: stopping abuse of employment allowance

The Budget contained a measure aimed at tackling employers who have a history of misusing the employment allowance (EA) to avoid paying the correct amount of national insurance contributions (NICs), by requiring employers to pay a bond equivalent to the amount of relief

Tax / Budget 2017: close companies gateway to tackle disguised remuneration

As part of the clampdown on abuse of disguised remuneration by company directors, the government plans to introduce further measures in Finance Bill 2018 to tackle existing, and prevent future use of, disguised remuneration tax avoidance schemes 

Tax / Budget 2017: reverse charge to curb construction industry VAT fraud

The Chancellor included an early warning in the Budget of the government’s plans to tackle VAT fraud in the construction industry, by introducing a domestic ‘reverse charge’ VAT scheme for construction services

Technical Alerts

22 Nov 2017

Tax / Budget 2017: additional HMRC funding to net extra £2bn

Additional resources allocated to HMRC to combat tax avoidance and evasion are expected to generate an extra £2bn according to the Budget 2017’s costings, reports Calum Fuller

Tax / Budget 2017: stamp duty sub-£300k purchases abolished for first-time buyers

From 22 November 2017 first time buyers paying £300,000 or less for a residential property will pay no stamp duty land tax (SDLT), saving up to £1,500 on their first home purchase

Tax / Budget 2017: higher rate threshold rises to £46,350

Chancellor Philip Hammond has announced that the income tax personal allowance will rise for the eighth year in a row to £11,850, and the higher rate threshold will increase to £46,350, from April 2018

Tax / Budget 2017: Gift Aid donor benefit thresholds simplified

After a review of the Gift Aid donor benefit rules, the government announced plans in the Budget to simplify the rules for charities using donor tax relief and realign existing thresholds to a simpler two-tier system

Tax / Budget 2017: VAT threshold frozen until 2020

The VAT threshold has been frozen at £85,000 for the next two years to give the government time to review the current system and consider proposals for reform

Tax / Budget 2017: tax breaks to boost oil and gas investment

Oil and gas companies to will be able to transfer tax histories under plans announced included in the Budget by the Chancellor

Tax / Budget 2017: air passenger duty frozen

Short-haul air passenger duty (APD) rates for 2019-20 will remain frozen as they have been since 2012, and there will be no increases in long-haul rates for economy passengers, although there will be an increase in the business class multiplier, the Chancellor announced in the Budget

Tax / Budget 2017: private sector set to face IR35 review

Chancellor Philip Hammond shied away from announcing confirmed action on a number of employment-related tax issues in his Budget speech, but the Treasury has said it will be consulting on how to tackle non-compliance with IR35 intermediaries legislation in the private sector next year

Tax / Budget 2017: business rates to be linked to CPI instead of RPI

Several changes to the business rates regime including shorter intervals between revaluations and a switch from the Retail Price Index (RPI) to the Consumer Price Index (CPI) have been announced by the Chancellor as part of the Budget

Tax / Budget 2017: higher rate SDLT rules clarified for divorce-related sales

The Chancellor has introduced a measure to grant relief from tax due under the higher rates of stamp duty land tax (SDLT) in certain cases, including where a divorce related court order prevents someone from disposing of their interest in a main residence

Tax / Budget 2017: CGT carried interest rules tightened

The Budget includes a measure to remove certain transitional rules that are no longer required for the effective taxation of amounts of carried interest that are charged to capital gains tax (CGT) under the carried interest rules which took effect from 8 July 2015

Tax / Budget 2017: EIS investment limits doubled

The annual allowance for people investing in knowledge-intensive companies through the Enterprise Investment Scheme (EIS) is to double, Chancellor Philip Hammond has confirmed in the Budget

Tax / Budget 2017: R&D tax relief increased to 12%

Tax relief for research and development (R&D) is to be increased from 11% to 12%, Chancellor Philip Hammond has confirmed in the Budget

Tax / Budget 2017: tax break on electricity provided to charge vehicles at work

As an incentive to get more individuals investing in electric vehicles, Chancellor Philip Hammond has announced that there will be no benefit in kind (BiK) charge on the electricity that employers provide to allow employees to charge their electric vehicle

Tax / Budget 2017: digital companies face royalty charge from 2018

Chancellor Philip Hammond said the new digital economy raised wider concerns about the tax system, and indicated in his Budget that the UK intends to take action ahead of reaching agreements at an international level about the way forward

Tax / Budget 2017: ATED rates set to rise in line with inflation

The annual chargeable amounts for the annual tax on enveloped dwellings (ATED) for properties over £500,000 held in companies will be increase by 3% 

Tax / Budget 2017: CGT indexation allowance to be frozen at Dec 2017 RPI

In a surprise move, the Chancellor has announced plans to freeze the capital gains indexation allowance and set it in line with Retail Price Index (RPI) fixed as of December 2017 and it will not be reviewed monthly as the current practice

Tax / Budget 2017: VAT refunds extended to Scotland police and fire

For the first time, the Scottish Police Authority and Scottish Fire and Rescue Service will be able to recover VAT incurred on their purchases, the Chancellor confirmed in the Budget

Tax / Budget 2017: marriage allowance allows claims for deceased

The government is now accepting claims for the marriage allowance in cases where a partner has died before the claim was made, with such claims being able to be backdated by up to four years provided all other conditions for the allowance are met

Tax / Budget 2017: insolvency regime overhaul to curb tax debt

The Budget proposals include a measure designed to tackle the use of insolvency to escape tax debt by expanding the current security deposits legislation, in a bid to recoup some £150m of tax annually, as well as a planned review of airline insolvency

Tax / Budget 2017: corporation tax interest restriction rules

Amendments to the corporate interest restriction rules have been announced as part for the Budget covering derivative contract debits and credits

Tax / Budget 2017: fuel rates frozen for eighth year

In his Autumn budget, Chancellor Philip Hammond announced that the fuel duty rise, which was scheduled for April 2018, has been cancelled and rates have been frozen at 57.95 pence a litre for the eighth year, saving the average driver £160 a year

Tax / Budget 2017: online VAT fraud clampdown extends liability

The government is to extend HMRC’s powers to combat online VAT fraud, with new legislation to be effective from April 2018, the Chancellor announced in the Budget

Tax / Budget 2017: company car tax on diesel cars increases by 1%

From April 2018 the company car tax diesel supplement will increase to 4% from 3% for diesel cars that do not meet emission standards, while cars that do meet the standards will have the diesel supplement scrapped

Tax / Budget 2017: CGT extended to all non-resident gains

The Budget outlines proposals to extend capital gains tax (CGT) to all non-resident gains from April 2019 in a measure set to bring in up to £160m annually

Tax / Budget 2017: first year VED rate increased for new diesel cars

As part of government plans to improve air quality, from April 2018 diesel cars will have their first year rate of Vehicle Excise Duty (VED) increased by one band unless they meet emission standards, as announced by the Chancellor in the Autumn Budget

Tax / Ex-forces pensioners urged to check tax code

Former members of the military who receive an armed forces pension are being advised to check how much tax they are paying amid concerns HMRC may have issued an incorrect code

Tax / UK tax system in second place to Canada in G20 ranking

The UK has the second most effective tax system in the G20, but has dropped down to number 23 in the global rankings, according to a study by PwC and the World Bank Group

Tax / Corporation tax receipts up by 18.3% on the year

Latest statistics show that corporation tax receipts are up by 18.3% compared to a year ago, suggesting progressive cuts in the rate are encouraging greater business activity, according to analysis by Blick Rothenberg

Insight / IFAC seeks volunteers for key board roles

The International Federation of Accountants (IFAC) is calling for nominations for two key roles on its volunteer board and positions on three of its committees, saying it is seeking diverse candidates that reflect the depth and breadth of the global accountancy profession

Audit / Charity auditors urged to adopt proactive reporting

UK charity regulators are urging auditors and independent examiners to adopt a more proactive approach to reporting any concerns they come across in charity finances or governance, beyond the legal minimum, in response to claims from MPs that auditors have been slow to flag up potential problems

Accounting / Companies Act 2006 Part 2: forming a company

This article, the second in our series on the Companies Act 2006, will focus on how to form a company, through to the essential documentation to ensure a new company complies with the legal framework as set out in CA 2006 Part 2

Technical Alerts

21 Nov 2017

Audit / Multimillion pound fines could reduce competition in audit market

Accountancy firms and institutes have raised concerns that if the Financial Reporting Council (FRC) continues to impose growing fines for audit misconduct it could result in a lack of competition, as firms may leave or avoid the listed markets due to a higher level of risk, reports Amy Austin

Audit / Internal audit: roles and responsibilities - part 2

In part two of our three-part internal audit series, Chartered Institute of Internal Auditors chief executive Dr Ian Peters examines what businesses can and should expect from their internal audit function

Tax / Corporation tax instalment payments delayed for largest businesses

Plans to require businesses making profits of £20m or more to pay corporation tax earlier and in instalments have been delayed until April 2019, HMRC has confirmed

Accounting / IFRS Foundation to remain in London

The IFRS Foundation, the governance and oversight body of the International Accounting Standards Board (IASB) is to move office, but remain in London following when the lease expires on its current location at Cannon Street in the City

Tax / Editor's comment: the dilemma of VAT reform

There have been rumours that the Chancellor could lower the £85,000 VAT threshold in tomorrow's Autumn Budget which would come as a blow to small businesses, who currently stall growth and tread water at £84,000 to avoid a VAT charge, explains Sara White, editor of Accountancy

Audit / Big Four could face £10m-plus regulatory fines

Big Four firms should face fines of £10m or more for poor quality audit work, while individual accountants guilty of dishonesty could be given 10-year bans, according to an independent review of the Financial Reporting Council’s (FRC) enforcement sanctions, which also calls for a greater focus on non-financial penalties

Tax / Government publishes Bill for post-Brexit customs regime

The government has published the Taxation (Cross-Border Trade) Bill to allow it to establish a standalone customs regime, and ensure that VAT and excise legislation operates effectively, following the UK’s withdrawal from the EU

Insight / 20-year ban for payday loan directors over lost pension monies

Three directors of a payday loan company who used over £1m from a pension liberation scheme to pay off company debts have banned for a total of 20 years following an investigation by the Insolvency Service

Tax / HMRC updates VAT rules on pension fund management

HMRC has published a brief covering a change in policy concerning the VAT treatment of pension fund management services provided by regulated insurance companies, which means it is delaying implementation of the new rules until 1 April 2019

Insight / Taxi firm director runs up £300K HMRC bill

A former Olympic boxer who moved to the UK from Romania and set up a private transport hire firm has been disqualified as a director for seven years, after an Insolvency Service investigation found it owed HMRC over £300,000 in taxes and had not maintained adequate accounting records

Tax / Warren: simplifying VAT carries reduced yield risk

Independent VAT consultant Neil Warren examines the issues affecting potential simplifications to the VAT system and considers the options available

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