Tax planning

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 u-turn on Welsh language tax office

HMRC has reversed its decision to axe its only office team offering tax services for customers in Welsh, and has announced that the staff are to relocate to Porthmadog

Tax / Creative sector sees 27% increase in tax relief payments

The UK creative sector has benefitted from a 27% increase in tax relief payments from £519m in 2015/16 to £661m in 2016/17, with an added £51m from new theatre and children’s television tax relief bringing this year’s record total to £712m

Tax / Making Tax Digital IT project flagged as a major risk

The delivery of HMRC’s flagship Making Tax Digital for business and its office relocation plans have been flagged up as displaying major risks in the latest annual report on the government major projects portfolio (GMPP) from the Infrastructure and Projects Authority (IPA)

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 / HMRC urged to change approach to complaints

HMRC needs to change its approach to customer complaints and view them as an opportunity to improve service, rather than as a challenge to operation efficiency, according to the latest annual report from the Adjudicator’s Office, which reveals the department paid out some £1.3m in redress last year

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 / NAO critical of HMRC’s failure to reduce tax credit fraud

The National Audit Office (NAO) has criticised HMRC’s failure to reduce ‘material’ levels of error and fraud in tax credit payments, and has qualified its opinion of the department’s accounts on that basis, as it has done every year since tax credits were introduced in 2003/04

Tax / Finance Bill (No.2) 2017 documents released

The Treasury has confirmed the details for the second, post-election, 2017 Finance Bill, which includes provisions for new non dom rules and restrictions on the amount of interest deductible for corporation tax, and purposes, among other updates

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 / 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 / VAT repayment notice updated to reflect cheque withdrawal

HMRC has updated VAT Notice 700/58: treatment of VAT repayment returns to confirm when a repayment return is recorded as being received, as HMRC plans to phase out government cheques for VAT refunds

Tax / HMRC forces trusts and estates to register online by 5 October

All trusts and estates with a tax liability must register online via the HMRC trusts and estates online service by 5 October following the withdrawal of paper form 41G (Trusts)