For many employees with a company car sitting idle outside their homes during lockdown, what was once a valued benefit has become an expensive gadget which has hardly been used over last three months. All is not lost for those who also have their fuel paid for by their employer, as a tax refund could be on the cards.
The extent of planned capital expenditure (capex) cuts by large listed companies in the UK was last week predicted to reach somewhere in the region of £23bn. CFOs seem to favour cash preservation over investment. What can Government do to lure business leaders away from their spending funk? Boosting the level of R&D tax relief available and relaxing the qualifying criteria would be a good starting point.
After a break of several weeks while its officers were busy introducing emergency coronavirus measures, there are signs that HMRC’s routine VAT compliance activity has restarted.
With the Coronavirus Job Retention Scheme, HRMC will now have sight of payroll data and whistleblowing reports to support enquiries into National Minimum Wage compliance.
Reducing VAT rates is an option for Government, or could it be ringfenced and invested for longer term benefits for the businesses most affected?
A rush of buyouts and corporate restructuring is expected once the business world gets back on its feet after coronavirus and prepares to face a changed marketplace. Businesses which find themselves involved in mergers and acquisitions should plan carefully to protect their entitlement to VAT recovery.
Businesses need to adapt premises to reopen to ensure compliance, but this comes at a cost. Implementing a temporary enhanced capital allowance could provide a real cash boost when reserves are depleted.
Are you taxed before you even come into the world? This was a question presented at a recent court hearing - the First-tier Tax Tribunal has confirmed that private ultrasound scans offering complementary services to those provided on the NHS still qualify as a VAT exempt supply of healthcare. Medical clinics offering ‘non-essential’ services should check that their registrations and contracts are up to HMRC scrutiny.
The introduction of the new VAT reverse charge for domestic supplies of construction services has been postponed by HMRC, but will a five-month extension be enough for a sector hard hit by the coronavirus emergency?
The charitable sector is calling for an extension to Social Investment Tax Relief (SITR). But how effective is it, and could there be a better alternative? In these uncertain times, where social enterprises have been hit hard by shortfalls in income, there is a strong argument for reforming this relief rather than losing it altogether. The government is simply adding to the uncertainty by appearing to not tackle the issue in good time.