Business tax

Tax / HMRC promotes online work-related expenses claims

HMRC is urging millions of employees such as nurses, hairdressers and construction workers to go online and directly check if they can claim extra cash back for work-related expenses, amid concerns they could be missing out on their full tax relief entitlement by using agencies instead

Tax / McDonald's Luxembourg deal did not break tax rules

A lengthy investigation by the European Commission has concluded that Luxembourg did not offer illegal state aid to McDonald’s with favourable tax treatments, and the reason for the double non-taxation was down to a mismatch between Luxemburg and US tax rules

Tax / Starbucks under fire over 2.8% UK tax rate

Starbucks has come under further fire over its tax policies after analysis showed the US chain’s European business paid just $5.9m (£4.47m) of tax in the UK on profits of $213m (£161m) last year

Tax / Making Tax Digital and rural businesses

With Making Tax Digital on the horizon, rural businesses risk being left behind and labelled as ‘non-compliant’ unless they act quickly, warns Mark Pryce

Tax / Apple pays €14bn outstanding tax bill to Ireland

The Irish government has confirmed receipt of €14.3bn (£12.7bn) from Apple, marking full recovery of the disputed state aid offered to the tech giant, which the EU ruled was an illegal ‘sweetheart’ tax deal more than two years ago

Tax / Supreme Court flexes powers over interest in Prudential case

In Prudential Assurance Company Ltd v R & C Commrs [2018] BTC 31, the taxpayer sought (among other claims) restitution of an amount calculated as compound, and not simple, interest but the Supreme Court, in its judgment delivered in July 2018, rejected this claim. Mark Cawthron LLB CTA examines the judgment

Tax / OECD updates guidance on country-by-country reporting

The OECD’s inclusive framework on base erosion and profit shifting (BEPS) has released additional interpretive guidance to give certainty to tax administrations and multinationals on the implementation of country-by-country reporting (CBCR), which is action 13 in its plan to tackle tax avoidance

Tax / Entrepreneurs’ relief and the equity dilution trap

Entrepreneurs’ relief (ER) can easily be lost due to the dilutive effect of a subsequent share issue – but help is at hand, explains Peter Rayney FCA, CTA (Fellow), TEP

Tax / House of Lords call for evidence on extent of HMRC powers

The House of Lords has issued a two-week call for evidence into the extension of HMRC powers as part of government plans for Making Tax Digital set out in the draft Finance Bill 2018

Tax / Republicans move to pass Tax Bill 2.0 before mid-terms

Republicans in the US House of Representatives have proposed more deficit-expanding tax cuts in a bid to garner votes before the mid-term elections on 6 November 2018

Tax / Apprenticeship levy cuts number of training schemes

The first year since the introduction of the apprenticeship levy has seen the number of apprenticeship starters drop by 137,000, although Chancellor Philip Hammond said this decline was expected with more businesses choosing to use their funds for higher-level training programmes

Tax / Hammond disputes responsibility for RPI issues

As part of its open inquiry into the use of the retail price index (RPI) in assessing government debt repayments and indirect taxes, the economic affairs committee quizzed Chancellor Philip Hammond during a meeting

Tax / Scotch Whisky Association calls for spirit duty freeze

Nearly three-quarters of Scots believe that the tax imposed by HMRC on Scotch Whisky should be at least as competitive as European taxes on flagship food and drink products, according to a poll commissioned by the Scotch Whisky Association

Tax / HMRC posts 6% rise in fraud investigation tax take

HMRC’s elite fraud team, the fraud investigation service (FIS), collected £5.47bn in extra tax last year, an increase of £300m (6%) from the previous year, according to analysis by Pinsent Masons which suggests tax authorities are taking advantage of wider powers to launch civil investigations

Tax / Insurance premium tax delivers 19% more revenue than forecast

The insurance premium tax (IPT) has delivered 19% more in tax revenues than was originally predicted, with revenues now close to £6bn, as businesses are taking out increasing amounts of insurance cover and the tax rate on policies has increased