Under current rules, where a VAT-registered business buys in services from outside the UK, it must charge itself UK VAT under the reverse charge procedure. Conversely, those who don’t undertake any economic activities are not liable.
The Bitcoin bull run shows no signs of slowing down, with its value soaring to an all-time high of $60,322 per coin earlier this month. Just one year ago, Bitcoin was trading at around $6,000. The perceived easy gains have attracted many new investors to the cryptocurrency scene. However, fresh money in the market means fresh opportunities for fraudsters, and investors face the prospect of limited sympathy from HMRC if things go awry.
For many individuals and businesses 2020 was a terrible year, both emotionally and financially. Those in the tax self-assessment system should prepare their 2020/21 tax returns as soon as possible to avoid any further financial burden, such as paying too much tax on their 31 July 2021 payment on account.
The life of a social media influencer may seem glamorous, with some seemingly living the life of luxury in sunny, far-flung resorts. Indeed, a number of influencers may have chosen to stay outside the UK throughout the pandemic, fearing the difficulties of keeping up appearances whilst under the constraints of lockdown. However, such year-long holidays could cause severe turbulence on the trip home as HMRC eagerly await their arrival to present a tax bill.
Some disruption to trade arising from the UK's departure from the EU was inevitable. However, as time goes by UK businesses trading with the EU will incur increased costs over a broad category of areas including EU VAT charged on services that were previously received free of local VAT.
People thinking they may be offered an honour need to make sure their tax position is clean, but how far back should checks go?
The overriding need to meet the net-zero target will not go away, but the damage done to the UK economy by Covid-19 makes it crucially important that business is provided with the right policy framework for the longest period possible in order to support the delivery of net-zero. The CBI has set a challenge that all and any tax system changes must be carefully considered against the Government’s net-zero objectives. Will the Treasury rise to the challenge on Tax Day?
The Chancellor’s Budget announcement of a super-deduction of 130 per cent was a necessary step given the announcement of the increase in the main rate of corporation tax to 25 per cent from April 2023.
The Budget contains measures to give more funds to help HMRC improve its technology and fight fraud. Predictions suggest the investment should more than pay for itself.