Weekly tax brief | 6 September 2022

The wider implications of extending the basic rate band
Chris Etherington 
 Following Liz Truss’ success in the Conservative leadership race, fiscal announcements are expected in the coming weeks which may include confirmation of rumoured tax cuts. Recent reports suggest that Liz Truss is attracted to the prospect of increasing the basic rate band to £80,000. What are the implications and how might it work in practice?

NHS England faces increased cost of delivering prisoner care due to recent tribunal decision
Scott Harwood
RSM UK has supported one of its healthcare clients on an appeal concerning the VAT position of prescription drugs and sexual health products distributed in prisons. Unfortunately, the tribunal’s finding - in favour of HMRC - could make it more expensive for the NHS to run a pharmacy dispensing service in prisons, than to operate a pharmacy on the high street.

‘Advanced’ tax avoidance schemes
Lee Knight
Recent warnings of tax avoidance schemes issued by HMRC suggest that many contractors and temporary staff are still getting caught up in contrived arrangements that incorrectly promise they can keep more of their earnings.

How checking your PAYE notices regularly could help you avoid any unwelcome income tax surprises
Adela Cebotari
Many people could be over-paying or under-paying income tax as a result of their PAYE tax code notice. As households look to offset rising energy and food bills to manage the cost-of-living squeeze, it is important individuals review these notices and take the necessary steps to ensure they aren’t in for a big surprise.

HMRC targets non-resident landlords with new ‘nudge’ letter campaign
Adam Jefferies
HMRC is set to send out ‘nudge’ letters to overseas companies that own UK property in an attempt to close in on taxpayers that may not have met their UK tax obligations. Individuals are encouraged to respond to these letters with care.

 

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