Weekly tax brief | 30 June 2020

Tax increases and the 8 July fiscal statement: the mood music changes
George Bull
A recent change in government messaging suggests that the autumn budget will combine targeted tax reliefs and incentives with tax increases. However, final decisions will not be made until the financial impact of the forthcoming lockdown easing has been assessed. What happens next?

Will we see a bold new progressive tax policy from the Conservative Government?
Rachel de Souza
With Rishi Sunak due to deliver a fiscal statement on 8 July, will it be ‘all change’ in tax policy for the Conservative party?

With the claim deadline looming, we urge the Government to urgently review the Self-Employed Income Support Scheme (SEISS)
Gary Heynes
With the deadline for the first grant claim for SEISS in less than two weeks, the Government needs to urgently review the scheme to ensure that self-employed individuals receive support equivalent to that available for the employed.

Where does a student really live and does it matter for VAT?
Sarah Halsted
The First-tier Tax Tribunal has ruled that careers-coaching services provided to international students are not subject to VAT as the individuals are ‘usually resident’ outside the UK. Although the provider won the argument in principle, it had not kept sufficient records to prove that residence was normally outside the UK and has to account for VAT on some contracts.

Warning to advisers on deferring tax payments and VAT payments which are now due
Tim Parr, Chris Etherington and Sarah Halsted
Tax accountants and advisers could face serious disciplinary action if they incorrectly encourage individuals to defer their tax payments due on 31 July 2020 and are urged to take care when advising their clients on what to pay.