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 and invite them to sign up to our regular briefings here.
High Income Child Benefit Charge may cost you your state pension
The High Income Child Benefit Charge (HICBC) was introduced in 2013 and yet many taxpayers remain ignorant either of their responsibilities or of the consequences if they misinterpret the rules, including potential loss of state pension entitlement.
HMRC’s nudge letters could prove costly for business owners
HMRC has confirmed they will be sending ‘nudge letters’ to certain taxpayers who have made capital gains in the year to 5 April 2020. The nudge letters will likely be sent to those who claimed Entrepreneurs’ Relief during that tax year. It could lead to painful and potentially costly investigations into transactions by business owners.
Lessons from implementing IR35 reforms – addressing the gaps in the system
The House of Commons has recently released ‘Lessons from implementing the IR35 reforms’, a report outlining how successfully the reforms have been implemented. However, the report highlights that many structural problems remain, with HMRC still needing to demonstrate that the system can operate effectively and fairly.
Does simplification spell higher taxes?
The Office of Tax Simplification’s latest area of review is property taxation, however some recommendations could result in higher taxes if adopted by the UK government.
Trust the process?
Trusts have a reputation as being a vehicle for the rich and famous, but they have wider application than many would think. HMRC has rolled out a Trust Registration Service (TRS) update which has brought more trusts into the remit of reporting. Certain trustees are now obliged to register under the TRS system with a deadline of 1 September 2022. Penalties apply where they are not registered on time.