Weekly tax brief | 16 February 2022

In this edition of RSM’s weekly round-up of the most important tax news, we cover the latest developments. Please feel free to share this update with any of your colleagues and invite them to sign up to our regular briefings here.

Could HMRC action on NFTs deter scammers?
Chris Etherington
HMRC has made its first ever seizure of non-fungible tokens (NFTs) as part of an investigation into VAT fraudsters. With the NFT market growing from just $106 million in 2020 to over $44 billion by the end of 2021, HMRC could end up taking ownership of more NFTs to recover evaded tax, as the market is exploited for scamming and money laundering.

Where’s the justice in the UK tax system?
George Bull
With two new taxes introduced since September 2021 and two more up for debate, we ask how all this fits within the UK’s sense of fair play. Overpriced pandemic procurement contracts and the domestic fuel crisis point towards massive profiteering in some parts of the economy: should the Chancellor now take a stand?

Making Tax Digital for VAT – are UK branches of overseas businesses ready? 
Sarah Halsted
The UK’s smallest businesses cannot fail to have noticed HMRC’s reminders about their new Making Tax Digital VAT obligations, which will be rolled out from April 2022. But has the message got through to the UK branches of overseas organisations, which may face a particularly tough task to comply?

Where is HMRC’s accountability when checking others’ credibility?
Noel Mooney
A review of HMRC’s performance in dealing with credibility checks and their latest activity in this area creates cause for concern and raises the questions; are the checks targeting the right audience, has HMRC overstepped the mark, and where is HMRC’s accountability?