Weekly tax brief 25 April 2017

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

US tax reform promises little for individuals but much for companies

25 April 2017

While individual income taxes are the biggest single component in US government funding, most attention is focused on the likely scale of cuts in US corporate income taxes. Will a reformed US tax system spark the biggest cash movement in the history of the world?

Which parts of the Finance Bill have survived?

25 April 2017

We now know that whole swathes of the Finance Bill 2017 have been dropped in the pre-election ‘wash-up’. The main principle seems to have been that clauses which will apply to 2017-18 have been retained while clauses relating to future years have been dropped. Making Tax Digital is one election casualty, but the sugar tax has been retained in its entirety. If there is a return of a Conservative government we would expect that clauses left out of this bill will be reinstated in a summer finance bill but if there is a change of government all bets are off.

Zero hours contracts on election agenda

25 April 2017

We have yet to see the election manifestos but Jeremy Corbyn has pledged that his party will ban zero hours contracts in the event of a Labour victory. However, a question mark remains over how such a ban could be implemented.

VAT windfall on government phone lines

25 April 2017

The last scheduled debate of this Parliament will be an ‘adjournment debate’ on Thursday 27 April to discuss the cost of telephone calls to the Department of Work and Pensions and other advice lines by Government Departments. The likelihood is that Parliament may prorogue before the debate – no doubt as a result of time constraints and nothing to do with any VAT windfall the Government receives from these numbers.