Weekly tax brief | 22 June 2021

Austerity or uncertainty – UK business taxation without a roadmap
George Bull
By refusing to commit to any form of corporate tax roadmap, the government is creating unnecessary uncertainties for businesses which are looking to invest, so creating jobs and helping restore an economy which has been battered by the coronavirus pandemic. Following recent news of yet more VAT changes which continue to catch out traders, and the surprising revelation that new trade agreements will prohibit companies in English freeports from exporting to 23 countries, we call on the government to get a grip on tax strategy, trade agreements and the tax consequences of Brexit.

The magic money tree: a wealth tax on billionaires
Chris Etherington
As the nation looks beyond the lifting of restrictions, attention turns again to the state of the public finances. With increasing pressure on the Chancellor to find a magic money tree, could he heed similar calls being made across the Atlantic and introduce a wealth tax on UK billionaires?

Could a remote working exodus cost the UK £32.5bn in tax?
Sarah Saunders
Remote working is causing many people to review the location of their home relative to their workplace. For some this may involve a move to another country while maintaining their UK work. If these people manage to structure their affairs in a way that escapes the UK tax net, recent figures suggest this could cost up to £32.5bn in lost taxes.

Will compensation payments for poor pension transfer advice be taxed?
Jackie Hall
The Financial Conduct Authority (FCA) has written to thousands of people encouraging them to submit claims to the Financial Services Compensation Scheme (FSCS) for poor pensions advice. The FCSC can pay up to £85,000 in compensation, but is this taxable?

Should ‘Finfluencers’ face fines for shoddy tax advice?
Chris Etherington
As the government considers the responses to its consultation on how to improve standards for tax advice, one area that appears to be missing from the agenda is how best to tackle the rise of a new form of tax adviser: ‘the Finfluencer’. This gap should be plugged. With tax rules now so complex that most people simply can’t understand them, we also ask whether there is a role for HMRC inspectors to become influencers.