VAT rise likely to hurt hospitality recovery and may cause more permanent closures September 30, 2021 The upcoming 7.5 per cent VAT rise will slow down Covid recovery for the hospitality sector and may lead to a number of additional closures, a SME tax expert told City A.M. today. The Government’s scaling back of its Covid support measure is coming too soon for businesses with little or no cash reserves, according [...]
£265bn in spent by quangos every year not properly accounted for, MPs warn September 24, 2021 MPs warned this morning that a review of arm’s-length bodies which are responsible for spending £265bn a year of taxpayers’ money has not been completed five years after it was promised. The Commons Public Accounts Committee (PAC) said that although the Cabinet Office had promised to review every so-called quango between 2016 and 2020, just [...]
HMRC delays move to make income tax digital by another year September 24, 2021 HMRC has delayed its planned move to make tax digital (MTD) by a further year, now scheduled to come into force in April 2024. The delay means businesses or landlords with a business income of over £10,000 a year will have now have an extra year to prepare for the digitalisation of income tax. General [...]
Exclusive: Record £38bn in tax by self-employed shows HMRC’s ‘peak leniency has passed’ September 23, 2021 The amount of income tax paid by self-assessment taxpayers has jumped 31 per cent to hit a record £38bn in the past year, up from £29bn the previous year, according to an analysis of HMRC tax receipts that was shared exclusively with City A.M. today. The boom in tax revenues from the self-employed is because [...]
Business minister: Income tax rise and 3p on fuel needed to pay for Universal Credit September 23, 2021 A minister has said income tax would need to rise to keep the £20 weekly Universal Credit uplift. Business minister Paul Scully told Sky News this morning: “The Chancellor… will look at the whole aspect of public finances in the Budget and the Spending Review that is coming up.” He went on to say: “But [...]
Exclusive: HMRC disbands ‘secret’ unit that probed family investment companies September 22, 2021 A dedicated unit within HMRC that focused on family investment companies has been disbanded, City A.M. understands. A source within HMRC confirmed this afternoon that the ‘secret’ specialist HMRC unit, which was set up in 2019 to investigate risks associated with family investment companies and tax avoidance risks, has been wound up. The primary reason [...]
Exclusive: Growing group of British landlords that live abroad admit tax evasion September 21, 2021 UK expats who own a buy-to-let property in the UK increasingly approach HMRC to admit they have evaded tax, according to new data shared with City A.M. this morning. 248 overseas investors in UK buy-to-let properties came forward to admit tax evasion in the year up to 31 March, according to data shared by accountancy firm UHY [...]
Legal Q&A: How referees’ pay could be hit by a tax dispute with HMRC and why this could have wide-reaching effects on the gig economy September 21, 2021 Lawyer Kevin Barrow explores the implications of an ongoing case between referees and HMRC. What’s this case about? It’s about whether PGMOL (Professional Game Match Officials Limited) needs to deduct income tax and National Insurance Contributions (NICs) from payments it makes to referees whom it has engaged on a self-employed “gig worker” basis to officiate at [...]
Exclusive: HMRC claw back record £4bn in lost taxes September 21, 2021 HMRC’s investigations and compliance work saved £4bn in taxes from being lost in the last quarter, nearly double the £2.2bn for the same period last year, according to new data shared with City A.M. today. The increase in the amount of taxes saved will be due in part to the winding down of the furlough [...]
City minister pledges ‘competitive tax rates’ for UK financial services sector ahead of Budget September 20, 2021 John Glen has promised that the UK’s financial services sector will benefit from “competitive tax rates,” ahead of the next Budget on 27 October, according to reports. “To be competitive, we have to have competitive tax rates and that’s what’s on the chancellor’s mind at the moment,” the City minister told the Financial Times, which first reported the [...]