ICAEW criticises proposed contractors’ loan charge

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The Finance Bill 2017 contains proposals to introduce new charges for any outstanding loans from disguised remuneration (DR) schemes. The charges will apply to all DR loans made to traders and employees after 5th April 1999 and those that will be outstanding on 5th April 2019. Anyone who is affected by this proposal will be charged tax at their marginal… Read more »

Avoiders not responsible for most of tax gap

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A chartered body has said that only 5% of the tax gap, the difference between the tax owed and the tax received, is attributable to individuals avoiding their tax obligations. Of the £34bn that HMRC believes it is owed, only £1.7bn arises from tax avoidance, according to the Chartered Institute of Taxation (CIOT). The tax gap is now at its… Read more »

British citizens with offshore interests risk 200% tax penalties

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Anyone with undeclared UK tax liabilities from offshore interests must settle their affairs before 30th September 2018 or they could face large penalties. The warning comes from a professional tax body. Under the “Requirement To Correct” (RTC), anyone who does not have a perfect UK tax position as a result of offshore assets from April 2017 has around 17 months… Read more »

Transportation projects affected by IR35 rule changes

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Evidence is emerging that the changes that were made to IR35 rules for those working in the public sector are having an adverse effect on projects due to contractor shortages. Many commentators predicted that contractors would leave the public sector due to the changes in the IR35 rules, which could result in contractors facing contradictory and draconian measures. Prior to… Read more »

Call for changes to universal credit for self-employed

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The Low Incomes Tax Reform Group (LITRG) has called for universal credit to be changed for self-employed claimants. The group warns that if these changes are not made, then people will be dissuaded from becoming self-employed and claimants might have no choice but to give up work. LITRG wants to see the following changes: flexible workers often have a fluctuating… Read more »

Interest rates rise

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Interest rates have been raised by the Bank of England for the first time since 2007. Seven of the Monetary Policy Committee members voted for a rate increase, and the official bank rate was raised from 0.25 per cent to 0.50 per cent. CBI Chief Economist Rain Newton-Smith said: “While it’s the first rate rise in over a decade, it… Read more »

Wealth Advisor’s misleading tax scheme advertising

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The Advertising Standards Authority (ASA) has criticised Knight Wolffe, a wealth advisor for misleading income trust advertising. The advertising material even used HMRC’s logo. The criticism was contained in a recently reported Spotlight 40 entitled “Income trust schemes: misleading advertising”. In the report HMRC criticise the Knight Wolffe income trust calling it a tax avoidance scheme. This is because the… Read more »

HMRC urged to scale up digital tax reporting pilots

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HMRC has been urged to scale up its pilots of Making Tax Digital (MTD). It has also been asked to invest in a major publicity campaign for the project. The call came from the Association of Taxation Technicians. Its President Graham Batty said “Pleased as we are about the relaxation in the timetable for quarterly reporting and digital record keeping… Read more »

Construction payroll company boss jailed

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A businessman who set up his own payroll company for construction workers who were self-employed has been jailed for fraud. Paul Marsh was the director of the company. In court Mr. Marsh admitted to making three fraudulent VAT declarations. The declarations that Mr. Marsh made to HMRC had the effect of reducing the amount of tax his company, Draco Consulting… Read more »

Hammond urged not to extend off-payroll rules

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The Chancellor Phillip Hammond has been urged not to extend the off-payroll rules that currently apply to the public sector in to the private sector in the Autumn Budget 2017. The call has come from PRISM who have called on the chancellor to “stop and analyse” the evidence both for and against any extension rather than simply announcing it as… Read more »