Weekly tax brief - 22 March 2017

In this edition of RSM’s weekly round-up of the most important tax news, we cover the latest developments.

The results are out: how much income tax do you think top earners should pay?

22 March 2017

Many of those who had tweeted cogently about tax fairness after the Budget fell strangely silent when I asked them what they regard as a fair share of income tax to be paid by the highest earners. My MP would not be drawn on the point. But I wanted to know what people think. So I asked readers of Tax Brief. The results are now in and analysed below.

Up to £38,300 tax free – no questions asked

22 March 2017

If you add up all the many tax-free allowances for different types of profits, and organised your finances to use them all, you could enjoy as much as £38,300 of income and gains without paying any tax at all. Now that’s a valuable prompt ahead of the start of the new 2017/18 tax year.

Short-term reprieve for self-employed, but how long will this last?

22 March 2017

The self-employed may have breathed a sigh of relief with the Chancellor’s U-turn on national insurance contributions (NIC), but there may still be a sting in the tail to come.

Has the primary focus for Making Tax Digital shifted?

22 March 2017

MTD ought to be seen as a way of delivering a much more efficient tax administration regime for taxpayers and HMRC alike. Tucked away in the middle of the monster Finance Bill published this week are a few modest pages relating to Making Tax Digital (MTD). Frankly they don’t say very much, but they do signal a significant shift in the main purpose of the plans.

Double VAT blow to City financiers

22 March 2017

As the City finance sector lobbies for post-Brexit tax breaks, a recent VAT tribunal confirms that it will have to carry on paying VAT, in full, on the engagement of temporary staff. This is not the only VAT blow hitting the industry.

VAT reduction for Northern Ireland tourism: is a one-size-fits-all VAT policy still appropriate?

22 March 2017

In a post-Brexit United Kingdom, is a one-size-fits-all VAT policy still appropriate? That is the question posed by the Parliamentary Northern Ireland Affairs Committee as it suggests a reduction in tourism VAT in Northern Ireland, and the devolution and ultimate scrapping of Air Passenger Duty to boost the sector, but what about the knock-on effect to other UK members?