CONSULTATIONS ISSUED ON TAX DAY BY TREASURY

The Treasury typically issue a bundle of tax consultation documents on budget day. This year, however, they chose to delay the publication until three weeks after the budget. We were expecting the consultation documents to include significant CGT and IHT changes, but these have yet again been delayed. The Treasury has accepted several recommendations by[…]

NEW PERSONAL SERVICE COMPANY RULES START THIS MONTH

The off-payroll working rules that apply to certain workers supplying their services to clients via their personal service companies start from the 6th of April 2021. Under this new regime, end-user businesses will be required to determine whether that individual would have been treated as an employee or not if directly engaged. This will be[…]

VAT RULES FOR CONSTRUCTION SECTOR STARTED

The new ‘reverse charge’ system of VAT accounting affects sub-contractors supplying their services to main contractors in the construction sector. Under the new rules, supplies of standard or reduced-rated building services between VAT-registered businesses in the supply chain are no longer invoiced in the usual way. Under the new reverse charge system, the sub-contractor does[…]

GET READY FOR THE ‘OFF-PAYROLL’ WORKING RULES

Where large or medium-sized organisations are paying workers via personal service companies (PSC) or agencies, they will need to operate new procedures from the 6th of April 2021. The new rules will apply to partnerships, LLPs and larger charities as well as limited companies. Only those organisations that would be classed as ‘small’ under the Companies[…]

GET READY FOR NEW OFF-PAYROLL WORKING RULES (IR35)

This time last year businesses were preparing for important changes to the rules where workers supply their services via their personal service companies. The start date was then deferred from 6 April 2020 to 6 April 2021. The new rules are scheduled to apply to large and medium-sized businesses as defined by the Companies Act.[…]

POSSIBLE INHERITANCE TAX CHANGES

The OTS has suggested simplifying IHT on lifetime gifts including reducing the period of potential exemption from seven to five years. Such a change would mean that the donor would be required to survive for five years following a gift for the transfer to be exempt from IHT. The OTS also suggested that the conditions[…]

WILL CGT RATES GO UP?

The OTS report highlighted the mismatch between CGT and income tax rates which currently encourages taxpayers to prefer to take profits as capital rather than income. This potential opportunity has been addressed recently in the case of company liquidations where there is now a targeted anti-avoidance rule. There has also been increased scrutiny of share[…]