The Government has announced a number of temporary measures to help people and businesses through the period of disruption caused by coronavirus. But how are these incentives treated for tax purposes and will any have a sting in their tail?
Whilst the Chancellor Rishi Sunak has announced unprecedented financial support for employees and the self-employed, there remains a noticeable gap in the coronavirus support measures. Is it a deliberate omission or the product of problem solving in an overly complex tax system?
Businesses and individuals are struggling to cope with the coronavirus crisis, but for HMRC’s schedule of consultations on tax law it’s ‘business as usual’. We urge HMRC to concentrate only on the consultations which are both urgent and important, leaving the rest until after the crisis has passed.
In a bid to ease the pressure on the self-employed during the coronavirus pandemic, the Chancellor has announced that the July self-assessment payments will be deferred until 31 January 2021.
UK companies whose staff are stranded overseas as a result of coronavirus travel restrictions may also unintentionally find themselves hit with an overseas tax liability.
Tax residence in most countries is based on the number of days spent there, together with connecting factors, such as having dependent family in the country or a home there. So what happens if you’re a UK resident caught in another tax jurisdiction?
The current restrictions on international travel could mean that people inadvertently fall foul of residency rules for tax and find themselves caught in the UK tax net.
There will always be those who try to turn a profit in times of panic and crisis, but a 1929 tax case concerning one million toilet rolls means any upselling should be taxable as trading income and not capital gain.
HMRC considers reinstating ‘duty-free’ limits for travellers carrying alcohol, tobacco and other goods between the UK and the EU.