Weekly tax brief | 30 November 2021

Another new tax: economic crime levy applies from April 2022
George Bull
From April 2022, around 4000 regulated businesses will have to pay a new economic crime levy. Expected to raise around £100 million per year, the Government believes that the levy will be an important source of funding for its ongoing action to tackle money laundering in all its forms. Others are concerned that too much of the levy will be absorbed by administration costs.

Bankruptcy risk for crypto investors
Chris Etherington
 Crypto investors could face potential bankruptcy at the hands of HMRC due to an inability to offset any losses against their profits. Many individuals are receiving an income in the form of cryptocurrency. However, significant drops in value could mean they are later unable to settle their income tax liabilities.

Last chance for companies to review their CJRS position?
Justin Stevenson
 December is always a busy month for those involved in the preparation of corporation tax returns. With many businesses having a 31 December year end, the deadline for returns to be filed with HMRC is looming. 

New freeports bring investment opportunities and tax breaks, but will they support the Government’s levelling up agenda? 
Jackie Hall
 The first of the Government’s proposed freeports are now opening for business. We look at the tax incentives available and how attractive (or otherwise) they might be. 

VAT repayments: are business owners receiving everything they are entitled to?
Sarah Halsted and Paul Russell
Recently, we have noticed more instances where HMRC has been slow to verify and release repayments claimed on VAT returns, and resistant to paying the five per cent repayment supplement that is legally due to the claimant when refunds are paid late without good reason.