Weekly Tax Brief - 28 October 2015

In this edition of our weekly round-up of the most important tax news, our regular team of tax specialists cover the latest developments…

Has the tax credits defeat left the tax system vulnerable?

28 October 2015

The Chancellor has been dealt a hefty blow this week after his proposal to make major changes to the tax credits system was quashed. But with just a few weeks to go before the Autumn Statement, might raiding the tax system be the easy way to prevent his austerity plans derailing?

Another review of the income tax and national insurance system?

28 October 2015

The OTS has launched a new consultation looking at the ‘closer alignment of income tax and national insurance’. But the idea of merging income tax and NI has been doing the rounds for nearly a decade – so what’s changed? Well now the government is asking a slightly different question - alignment not merging. So could there be a whiff of change in the air at last?

OTS puts small companies tax under the microscope

28 October 2015

The OTS is to look at the way in which small companies are taxed. But we’ve been here before haven’t we? Well yes, but this is the newly beefed up OTS, and it looks like the government is now prepared to sit up and consider significant reform in this area.

Parcels delivering EU VAT registration problems

28 October 2015

Suppliers of e-services in the EU have had a real headache with VAT this year, and now it seems that businesses selling and delivering goods to consumers in the EU are coming under the spotlight. New guidance from the EU VAT Committee means these businesses could soon have to register and account for VAT in the member state of their customers. Not only that, but there’s also the potential of double taxation too. Time to reach for the paracetamol?