Tax compliance

Tax / HMRC issues guidance on tax treatment for FRS 105 accounts

HMRC has issued guidance on the tax implications of transition to the new accounting rules for small business under the FRS 105 Micro-entities Regime, as the first year of reporting under the FRSSE replacement comes into effect, setting out recommended tax treatment

Tax / Consumers to pay VAT on roaming services outside the EU

From 1 November 2017, VAT will be charged on roaming services used by UK consumers outside the EU due to the government removing the ‘use and enjoyment’ rule on telecommunication services provided to consumers, as announced in Spring Budget 2017

Tax / HMRC wins £29m tax avoidance case

HMRC has won an Upper Tribunal appeal against a tax avoidance scheme which sought to claim £122m was spent on research into brain disorders, when only £7m of it reached a genuine research company

Tax / HMRC’s NMW/NLW enforcement budget to increase by £5.3m

HMRC’s budget to ensure businesses are paying employees the national minimum wage (NMW) and national living wage (NLW) is to increase by £5.3m in 2017/18 after it grew significantly in April 2016 to £20m, according to government’s Labour Market Enforcement Strategy report

Tax / HMRC failing to match promise on tax fairness

HMRC is struggling to convince individuals, agents and small businesses that it applies penalties and sanctions equally although it has become more approachable and faster at responding to queries in the past year, according to a survey of performance against the key elements of the department’s Your Charter of customer rights

Tax / Update to BEPS guidance on country-by-country reporting

The OECD’s base erosion and profit shifting (BEPS) project has released additional guidance on the implementation of country-by-country reporting (CBCR), with the aim of providing further clarification to tax administrations and multinational companies

Tax / Transfer pricing: re-evaluating profit splits

Robert Verzi, partner and Philip Brudney, international tax manager at Aprio, outline the implications of the profit split method in transfer pricing as part of the OECD’s Base Erosion and Profit Shifting (BEPS) project and highlight issues for multinationals as they examine global transfer pricing policies 

Tax / Recovering VAT on company car purchases

Stanley Dencher, specialist tax writer at Wolters Kluwer, considers two recent cases which HMRC has lost regarding whether input VAT is recoverable on company car purchases when private use is prohibited

Tax / HMRC collects over £4bn from APNs

More than £4bn has been collected through accelerated payment notices (APNs) under the ‘pay now, dispute later’ rules for people who have used a tax avoidance scheme, according to HMRC

Tax / Deadline looms for client notification letters about offshore tax compliance

Anyone with offshore bank accounts, overseas income and assets needs to get up to speed with the new rules on international tax compliance, which will see accountants and tax advisers liable to notify clients about automatic exchange of financial information and disclosure rules by 31 August, says Meg Wilson CTA

Tax / EU tax burden steady in 2015 at 38% of GDP

The European Commission has published its annual taxation trends report showing that tax revenues across the EU’s member states stabilised in 2015 at 38.7% of GDP with the EU having one of the highest tax levels compared to other advanced economies

Tax / Sham contracts in construction industry: tips and advice

Sham contracts in the construction industry are increasingly being used to avoid tax legislation. Ian Anfield, managing director of Hudson Contract, provides tips on how to spot sham contracts and explains the risks associated with them

Tax / Second Finance Act pushed into autumn but measures effective April 2017

All measures dropped from the Finance Act including loss relief and non dom changes in the run-up to the election will be reinstated in a Second Finance Bill which will be introduced as soon as possible after the summer recess when MPs return to parliament 

Tax / Making Tax Digital delayed until 'at least' 2020 except for VAT

The government has caved into pressure over Making Tax Digital and has delayed rollout by 'at least' two years until 2020 with the deferral confirmed by the Treasury, although quarterly VAT reporting using the system will be mandatory from 2019, reports Sara White

Tax / How Rangers lost employment benefit trust (EBT) case at Supreme Court

When the Supreme Court rejected the Rangers employee benefit trust argument, HMRC appeared to have been vindicated. Ray McCann CTA, partner at Joseph Hage Aaronson examines the implications of the ruling, the implications for companies who used EBTs and did not settle with HMRC when an amnesty was offered, and the use of abusive tax avoidance schemes