Weekly Tax Brief | 3 September 2019

If governments fail to respect the rule of law, might taxpayers do the same?
George Bull
With a Cabinet Minister refusing to confirm that the Government will abide by the law, and HMRC accused by a Tribunal of abusing its powers in order to deliberately frighten a taxpayer, it’s not been a good month for the rule of law. What would happen if taxpayers similarly chose which tax demands to pay and which to ignore?

Could HMRC's latest IR35 'nudge' campaign herald a wider amnesty? 
Susan Ball
HMRC is sending out 'nudge' letters to contractors in sectors where it believes there is a high risk of non-compliance with the current IR35 rules. This includes the pharmaceuticals industry as GSK contractors found out last week. Could this latest activity be a prelude to a new disclosure facility or amnesty? 

Construction sector faces perfect storm of VAT issues
Philip Munn
Unless HMRC responds to calls from the construction industry and RSM, on 1 October the industry faces a perfect storm of VAT issues. The domestic reverse charge for the Construction Industry Scheme will be introduced along with the kick-off of Making Tax Digital for some organisations. The most recent announcement looks set to increase the cost of energy-saving measures.