Weekly tax brief | 6 October 2020

Employers using the CJRS at risk of underpaying holiday, notice and redundancy pay
Charlie Barnes
Contracts of employment must state what an employee is paid, when they are paid, what their holiday entitlement is and their notice period. However, what the employee should be paid whilst they are on holiday, during their notice period or if they are made redundant rarely is. It might seem straightforward to calculate these payments, but the reality can be far from easy.  

HMRC to launch two new targeted nudge letter campaigns
Justin Stevenson
HMRC continues to ramp up its compliance activity and make use of the various sources of information in order to target individual taxpayers who may have underpaid tax.

Airbnb to provide information on renters’ income to HMRC
Sarah Saunders
Airbnb will be providing HMRC with a list of people who rent out property via their app, along with the income received for 2017/8 and 2018/9. Renters who have not declared their income and are not covered by any letting exemptions should act now, before HMRC catches up with them.

Thinking of moving to Scotland?
Shirley McIntosh
Remote working has become a hot topic in recent months. Those seeking affordable alternatives to cramped properties in congested cities in the south are looking for spacious properties with gardens much further afield. But what are the implications of crossing the border?

Are aphrodisiacs ‘food’ for tax purposes?
Sarah Halsted
A European court ruling means that sexual stimulants might qualify for a reduced rate of VAT in the Netherlands, alongside vitamin pills and food supplements, while UK customers continue to pay 20 per cent VAT on both.  

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