Brexit will have a deep and profound effect on UK businesses, but the Government’s plan to remodel the VAT and customs duty system still does not address all its implications. As a result, many will be unhappy with the implication of Michael Gove’s new ‘Time Is Running Out’ campaign that it is businesses who have failed to appreciate the gravity of the situation and have been dragging their feet.
One of the skills of an accomplished Chancellor of the Exchequer is to use a single tax to achieve multiple political objectives. We review the UK’s pre-EEC experience of a purchase tax and ask whether a hard Brexit could see the introduction of a higher rate of VAT on luxury goods.
The Department for Culture, Media and Sport has announced how the first tranche of spending from the £1.57bn emergency recovery fund, launched in July, will be allocated. This relief package is a welcome boost to a sector. However, without further targeted measures we are in danger of retaining the country’s cultural architecture and trophy assets, but without the creative artists to put on the performances to fill them.
Could the government’s latest review of the UK’s alcohol duty system make it cheaper to drink in pubs than at home, and what could this mean for off licences, restaurants and supermarkets?
HMRC recently published a consultation document to explore how the scope of qualifying expenditure for research and development (R&D) tax credits ought to evolve to reflect the modern trends in R&D. This is a welcome step in ensuring that the UK has a tax regime which is internationally competitive and supports future investment in innovation.
A 2 per cent Stamp Duty Land Tax surcharge will apply from 1 April 2021 on purchases by non-residents of residential property in England and Northern Ireland, increasing the maximum SDLT rate for overseas buyers to 17 per cent. Further clarity is however required on the draft legislation to understand the full impact of the proposed test of residence to be used, as anomalies could arise.
Airbnb will be providing HMRC with a list of people who rent out property via their app, along with the income received for 2017/8 and 2018/9. Renters who have not declared their income and are not covered by any letting exemptions should act now, before HMRC catches up with them.
Remote working has become a hot topic in recent months. Those seeking affordable alternatives to cramped properties in congested cities in the south are looking for spacious properties with gardens much further afield. But what are the implications of crossing the border?
HMRC continues to ramp up its compliance activity and make use of the various sources of information in order to target individual taxpayers who may have underpaid tax.
Contracts of employment must state what an employee is paid, when they are paid, what their holiday entitlement is and their notice period. However, what the employee should be paid whilst they are on holiday, during their notice period or if they are made redundant rarely is. It might seem straightforward to calculate these payments, but the reality can be far from easy.