Tax compliance

Tax / HMRC races to update IT system to handle dividend tax change

HMRC’s own computer systems have been unable to deal with the slew of changes to dividends and interest income introduced for the year ended 5 April 2017 so it is having to take swift action to address the problems, warn RSM head of tax risk and investigation Mike Down and tax manager Sarah Saunders

Tax / HMRC urged to act on online VAT fraud by overseas sellers

HMRC has been too slow to address the problems of online VAT fraud by overseas sellers and its estimates of the tax loss are ‘out of date and flawed’ according to a report from the public accounts committee (PAC), which says the current uncertainty over the terms of the UK’s withdrawal from the EU risks making the problems worse

Tax / OECD reports action taken to amend preferential tax regimes

Governments have dismantled, or are in the process of amending, nearly 100 preferential tax regimes as a result of the introduction of the base erosion and profit shifting (BEPS) standards to improve the international tax framework, according to a progress report from the OECD

Tax / Partnership taxation: chargeable tax and profit allocations

The imminent overhaul of tax rules for all types of partnerships will have a wide-reaching impact, particularly on the bare trust/beneficiary approach. Mark Cawthron LLB CTA outines the key changes and sets out potential pitfalls for partners to consider

Tax / Corporate tax evasion offences - what you need to know

Sophie Brookes, partner and professional support lawyer at Gateley plc, outlines the two new corporate tax evasion offences forming part of the Criminal Finances Act 2017, which make organisations liable for failing to prevent employees or agents from facilitating tax evasion

Tax / HMRC consults on simplification of group relief for carried-forward losses

HMRC has published draft regulations and a draft explanatory memorandum setting out how companies can enter into simplified arrangements in respect of claims and surrenders of group relief for carried-forward losses, which are designed to reduce the administrative burden

Tax / HMRC wins on non-notification of £110m tax avoidance scheme

HMRC has won a landmark Alchemy case against a tax avoidance scheme promoter who failed to meet the Disclosure of Tax Avoidance Scheme (DOTAS) rules in a tribunal ruling that could lead to the recovery of £110m

Tax / HMRC launches technical consultation on soft drinks levy

HMRC has announced a technical consultation on two draft statutory instruments regarding the soft drinks industry levy which is being introduced from April 2018

Tax / FTT ruling shines spotlight on actor’s NICs via intermediary company

A First Tier Tribunal (FTT) has found that well-known actor Robert Glenister was within the National Insurance Contribution (NIC) intermediary rules when he was paid via a personal services company (PSC), in a ruling which may have implications for a number of other self-employed entertainers

Tax / HMRC to research views of UK’s wealthiest on tax compliance

HMRC is planning a research project looking at tax compliance behaviours amongst the very wealthiest individuals, which it concedes are a ‘hard to reach group’, with a view to investigating ways to improve it

Tax / Ebay pays £1.6m UK tax while revenues hit $1.3bn

Online platform eBay has found itself facing scrutiny over its tax policies, after its UK business paid £1.6m in tax last year, even though its US parent reported total revenues from its UK operations of $1.32bn (£1bn)

Tax / Buy-to-let landlords warned over CGT liability in downsizing

Recent tax changes and other government moves designed to cool the buy-to-let market are starting to have an effect, with an increase in the number of landlords with significant property portfolios wishing to downsize, but concerns around potential capital gains tax (CGT) liabilities are increasing, law firm Irwin Mitchell Private Wealth reports

Tax / HMRC simple assessments: what you need to know

As the first HMRC simple assessments are sent out, Meg Wilson CTA explains how they work for affected taxpayers including new pensioners and anyone who has underpaid PAYE and what action they need to take as they are pulled into the first wave of implementation, effectively seeing the abolition of their annual tax return

Tax / HMRC stops use of personal credit card to pay employer PAYE penalties

Employers will not be able to use personal credit cards to settle outstanding PAYE late payment penalties, PAYE settlement agreements or Construction Industry Scheme (CIS) late filing penalties from January 2018

Tax / HMRC issues guidance on VAT electronic payments

HMRC has issued guidance about paying VAT to HMRC electronically, and receiving repayments by Bacs, as well as updates to the land and property, education, and construction VAT manuals