Weekly tax brief | 2 September 2021

Sweeping EU VAT changes result in additional complexity and cost for GB retailers
Peter Williams
On 1 July 2021 the EU announced sweeping changes to the VAT rules applying to cross-border business to consumer (B2C) e-commerce activities. These changes were aimed at removing a perceived commercial advantage that non-EU suppliers had over their EU established competitors.

Multiple fundamental changes are suggested for the income tax system: is the impact being properly reviewed?
Sarah Saunders
Some tax changes seem to be introduced without proper consideration of their impact. This is neither sensible nor helpful. The Government is now proposing multiple major changes to the tax system. How much has the interaction of these been considered? Based on past evidence, not enough. We call on HMRC to report on how the combined total of all these changes will affect taxpayers.

Now the Home Office is in trouble with HMRC over IR35 failings
George Bull
With two government departments now having to pay around £120m to HMRC in tax, interest and penalties because of their failings in applying the off-payroll working (IR35) rules, we ask what hope is there for private sector employers?