Weekly tax brief | 31 January 2023

In this edition of RSM’s weekly round-up of the most important tax news, we cover the latest developments. Please feel free to share this update with any of your colleagues.

How serial entrepreneurs can save on their tax bills
Adam Grannell
With the self-assessment filing and payment deadline upon us, many will be questioning tax bills and asking whether anything can be done about them. In many cases, the answer is simply that it cannot. However, those taxpayers who have realised substantial capital gains and are now facing an associated capital gains tax liability, may still have time to act.

Millions to suffer late payment penalty pain
Chris Etherington
The tax return deadline passes for another year on 31 January 2023 but HMRC appears set to benefit from a windfall in penalties from taxpayers unable to fully settle their tax liabilities. Our calculations suggest that millions of basic rate and higher rate taxpayers will be hit with a penalty for tax that remains unpaid after 2 March 2023.

Could healthy snack bars be about to change the VAT rules for food?
Sarah Halsted
Although the VAT law does not consider the healthiness of food products when determining their VAT position, it is often assumed that healthy food is VAT free while more indulgent snacks are subject to VAT at 20%. Could an appeal brought to the tax tribunals by Morrisons be about to make that assumption a reality?

Counting the cost of cutting taxes
Chris Etherington
Figures published today by HMRC highlight the direct effect of fiscal drag on the public purse and how much it will now cost the Treasury to cut taxes.

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