Weekly tax brief | 14 September 2021

Turned eighteen in the past year? If so, you may be missing out on free money
Sarah Saunders
Children’s Trust Funds (CTFs) started maturing on 1 September 2020. As the first recipients turn 18, HMRC has announced that many beneficiaries have failed to claim their funds, which contain a minimum of £250, but could contain much more.

How can HMRC collect more tax debt?
Sarah Saunders
How can HMRC improve engagement with its most reluctant debtors to speed settlement and make things better for all concerned? New research examines how ‘disengaged’ debtors view HMRC.

When is a business not a business? When it no longer qualifies for VAT registration
Sarah Halsted
The Upper Tribunal has found that a farming business whose income had dwindled away over the years to a very low level is no longer ‘in business’ for VAT purposes, and therefore no longer entitled to VAT recovery. The findings suggest businesses should check whether their VAT registration is still valid under HMRC’s latest interpretation.

Will UK corporation tax policy stifle economic growth?
James Morris
The corporation tax rate increase is a bold move underpinned by a need to increase tax revenues, avoid significant tax burdens on individuals and a belief that the UK will remain an attractive place to do business. Only time will tell if this measure helps manage the public purse or is a factor in limiting economic growth over the coming years.

Harsh impact of Health and Social Care Levy shows MPs must be told what they’re voting for
George Bull
How often do we hear criticisms the tax law is in a mess, that it is too complicated and that it doesn't work as expected? Three days in the life of the new Health and Social Care Levy suggest that may be because MPs do not know what they're voting for. Parliamentary officers must get a grip on this.