In case you didn’t know 6 April is the start of the new tax year and in traditional New Year style, non-doms across the UK could take this opportunity to implement some resolutions.
The new tax year normally arrives without a bang, but for Scottish taxpayers this Friday (6 April 2018) will mark a historic moment as the income tax rates and bands applicable in Scotland will diverge from those applying elsewhere in the UK. Will this be a cause for celebration by putting more money in the pockets of some Scottish earners and delivering an increase in tax receipts to boost investment in Scotland?
Given the recent developments involving BBC presenters, it would be easy to conclude that all personal service company arrangements are bound to end in tears. However, a recent tribunal judgment shows this isn’t always the case.
Companies that hold UK residential properties worth over £500,000 have until 30 April to file and pay ATED – the Annual Tax on Enveloped Dwellings – but due to recent property price inflation, many may be unaware that they are caught by the charge.
The question of BBC pay, and more generally the role of personal service companies remains a controversial topic. After the widely reported IR35 case involving BBC presenter Christa Ackroyd, attention moved to the House of Commons where a number of BBC presenters gave evidence before the Digital Culture Media and Sport select committee.
With growing recognition that the UK tax base has shrunk to an unhealthy degree, and that the system of taxation in the UK must be updated to reflect contemporary ways of living and doing business, we were interested to see three new approaches to UK taxation announced over the last few days. Driven by ideology, fiscal necessity or pragmatism, history suggests that none will find its way onto the Statute Book in the form anticipated by its advocates. Nevertheless, each is instructive for what it says, and for what it does not say.
The government has now introduced the Making Tax Digital for VAT legislation. But this is apparently without taking heed of the concerns of professional bodies, advisers or impacted businesses and before lessons can be learned from the pilot programme.
With around £8bn of tax relief claimed annually in respect of pension contributions, you would hope that your pension scheme is claiming the correct amount of relief in relation to your pension pot. However, it seems that HMRC has discovered this is not always the case and is on the warpath to reclaim tax relief where it has been overpaid.
The Ministry of Defence is reported to be looking at compensating soldiers for the additional income tax which they will pay as a result of moving to Scotland. But aren’t differential tax rates just an inevitable consequence of tax devolution?