Tech companies may try to dodge digital tax if OECD reforms are delayed, UK spending watchdog warns April 5, 2023 Tech firms may try to dodge a UK government tax levied on digital companies if international tax reforms on the sector are delayed, parliament’s spending watchdog warned. The public accounts committee said this week that it had raised £358m from the digital services tax in its first year, 30 per cent more than expected, but [...]
No firms charged with ‘failure to prevent’ tax evasion in 6 years – here’s why April 3, 2023 The UK taxman has not charged any British firm with the ‘failure to prevent tax evasion’ offence since it was introduced six years ago, HMRC has confirmed. Under the offence, introduced in 2017, a British company can be criminally prosecuted if it was found to have not put adequate checks and systems to prevent its [...]
Pensions, Isas, child benefit limits and inheritance tax: Your ten point end of tax year checklist March 29, 2023 In five year’s time the annual income of another 2.1 million taxpayers will fall into the higher rate tax threshold, a rise of 47 per cent, according to the Office for Budget Responsibility (OBR). The threshold has been frozen since April 2021 – and is expected to stay frozen until April 2028 while the threshold [...]
Lump sum or regular saving, investing for children and how to go green: Your Isa guide to making the most of this year’s tax-free allowance March 24, 2023 With just under three weeks left until the end of the tax year, savers may still be considering how to use their annual tax-free Isa allowance. You can use your allowance whether you are looking at setting up a regular savings plan, or investing a lump sum, or even considering putting some cash aside for [...]
Inheritance tax take beats all records as property price hikes boost HMRC’s coffers by whopping £6.4bn March 21, 2023 The amount of inheritance tax (IHT) paid in February totalled £531m, bringing the total for the 2022/23 tax year to a record £6.4bn. With just one month to go the amount already surpassed the £6.1bn received by the Treasury throughout the entire 2021-22 financial year. The record-breaking inheritance tax take follows last week’s revision by [...]
Pension pain: Savers who bought lifetime allowance ‘protection’ warned they may still find their tax-free lump sum capped March 17, 2023 Chancellor Jeremy Hunt’s decision to scrap the pension lifetime allowance (LTA) in Wednesday’s Spring Budget, was heralded as an incentive for wealthier employees over 50 to stay in the workforce. But some pensions experts say for those who took out a form of LTA protection may still have to watch they do not go over [...]
HMRC delays are hindering UK growth, accounting body warns February 8, 2023 Major hold ups at HMRC are “acting as a drag on the UK’s economic growth,” the head of one of Britain’s top accounting bodies has said. The “unacceptable” delays, caused by backlogs at the UK’s tax authority, “need to be addressed promptly,” ICAEW chief executive Michael Izza said, as he called for the launch of [...]
EY says it does not owe ‘duty of care’ to taxman in fight over property magnate’s tax affairs February 6, 2023 EY has said it is under no obligation to help HMRC collect more taxes in defending itself against a High Court lawsuit over a British property magnate’s tax affairs. The Big Four accounting firm said it owed no “duty of care” to HMRC to have given it information that could have helped it collect more [...]
‘No penalties for innocent tax errors’: Head of HMRC piles more pressure on Zahawi January 26, 2023 The boss of HM Revenue & Customs (HMRC) has told MPs there are “no penalties for innocent errors”, as he was quizzed on the tax furore surrounding Nadhim Zahawi. HMRC chief executive Jim Harra, appearing before the Public Accounts Committee where he was due to discuss tax compliance and the pandemic, was pressed on some [...]
UK’s ‘science superpower’ dreams at risk due to HMRC crackdown on R&D tax relief fraud January 24, 2023 The UK’s goal to become a ‘science superpower’ is at risk as an increasing number of British firms move their R&D activity abroad, due in part to HMRC’s crackdown on fraudulent tax relief claims, a new report says. More than two-thirds (69 per cent) of UK businesses moved R&D activity abroad last year, figures from [...]