Weekly tax brief |18 January 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.

“Britcoin” could bolster Treasury tax receipts
Chris Etherington
The House of Lords recently criticised plans for a Bank of England-backed cryptocurrency, ‘Britcoin’, suggesting it’s a solution looking for a problem. Well, if a problem is being sought, how about the small matter of ensuring the Treasury receives the crypto-related tax revenues which are due while also limiting crypto tax avoidance?  

Taxpayers could be missing out on £1m of tax relief
Simon Browning
Does a zero per cent tax rate on a share sale sound too good to be true? In the right circumstances, it can be achieved with HMRC’s blessing via the Enterprise Investment Scheme. However the rules are detailed and complex, so some investments unwittingly fail to qualify. External investors should consider other reliefs that may still achieve significant savings, such as a 10 per cent tax rate from the rarely claimed Investors’ Relief.

Looking out for changes to employment legal regulation and rights in 2022 
Carolyn Brown
There’s been little progress on the development of a single enforcement body to oversee cohesive, state-funded regulatory labour rights enforcement. This was mainly due to the pandemic but, now furlough has ended, two important first steps on the road to the single enforcement body are being taken.  

Corporate criminal offence and supply chain reviews
Paul Marcroft
HMRC is due to publish its update on the corporate criminal offence (CCO) soon. Although details of these active cases have not yet been made public, we know that they involve tax and duty regimes across organisations of all shapes and sizes, spanning ten different business sectors, including recruitment. Ignorance is no defence for recruiters found ‘asleep at the wheel’ if HMRC discovers that they have facilitated tax evasion. 

What impact can the Scottish Framework for Tax have, if any? 
Ross Stupart
The Scottish Government wants to create a sustainable fiscal environment in Scotland that embodies fairness and equality. The recent Scottish Framework for Tax sets out a plan to achieve this; but is it possible within the current economic landscape, limited devolved powers and the latest Scottish productivity data? 

Court ruling adds to doubts about HMRC’s VAT policy on early termination fees
Sarah Halsted
A court ruling in a land and property dispute has highlighted a flaw in HMRC’s controversial view that most early termination fees and compensation payments should be subject to VAT. 

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