For years it’s been common practice for directors of owner-manged businesses to reward themselves through dividend payments rather than through the payroll, largely because of the more attractive taxation treatment. Dividend payments pre-suppose the company has sufficient distributable reserves to do so, but the impact of coronavirus means some may struggle to make these payments.
Since Making Tax Digital was first introduced for some VAT registered businesses in 2019, the digital links aspect of the new rules was misunderstood and regarded as the hardest to implement. The same remains true today, but for many taxpayers 1 April marks the first day of the first VAT return period that must comply with these new rules.
Most people are unaware they have the right to view privately held inheritance tax-exempt, heritage items. Viewings of such artefacts are currently suspended, but you can now check the register for the hidden historical gems you are entitled to see.
A recent tribunal case demonstrates how gig economy workers can end up in tax trouble because they are in structures they do not understand. Is HMRC doing enough to protect the vulnerable?
Recent court and tribunal decisions in relation to Uber drivers and television presenter Kaye Adams have shone fresh light on the misalignment of the employment, legal and tax treatment of people in work. Government promises to address this with an Employment Bill in December 2019 came to nothing.
As the current Grenfell Tower hearings draw to a close this week, the Treasury has announced it will publish a consultation for a new tax on large residential property developers. This new tax will be introduced in 2022 to help pay for the costs of cladding remediation but should it go further?
There has to be a first time for everything. Nobody knew quite what to expect of Tax Day. The overriding impression from the 30-odd updates, consultations and documents is that the Government is putting a lot of effort into collecting established taxes rather than raising new ones. New laws will outweigh tax simplification. Climate change issues hardly gain a mention. And the question of the all-important tax roadmap for businesses remains unanswered.
Two new calls for evidence on modernising tax administration and bringing forward tax payments could profoundly impact the way businesses and other taxpayers experience the UK tax system in the long term.
Many fantasise about not having to pay tax. It is possible, but be careful what you wish for, as you may not get the result you wanted.