Accountancy Daily

Tax / Budget 2020: large business tax notification requirement

The Chancellor’s first Budget included an announcement that from April 2021 large businesses will be required to notify HMRC when they take a tax position which HMRC is likely to challenge, but few details of the policy have been revealed

Tax / Budget 2020: HMRC automated orders given equal legal status

Automated penalty notices and orders to file self assessment tax returns are going to be given the same legal status as if they had been issued by an HMRC officer, reports Sara White

Tax / Budget 2020: LLPs ‘without view to profit’ face HMRC probes

The government is clamping down on abuse of limited liability partnerships (LLPs) which claim to be operating for profit, but are actually not, clarifying HMRC powers to amend their tax returns, reports Sara White

Insight / Hywel Ball named as EY's new UK chair

EY has appointed Hywel Ball to succeed Steve Varley in the firm’s top role, as EY UK & Ireland regional managing partner and UK chair, taking over on 1 July

Tax / Budget 2020: R&D tax breaks offer limited support for innovation

Breaking the austerity approach of recent years, the Chancellor signalled a multibillion investment in research and development (R&D) and innovation at the Budget. Stuart Weekes, partner, and Caroline Hunt, director, corporate tax at Crowe, consider whether the tax measures go far enough to stimulate growth

Tax / Nunn: Budget lukewarm on climate change measures

Rishi Sunak’s first Budget failed to prioritise climate change with only limited tax breaks to invest in zero emission cars as coronavirus swept other global issues aside. Yvette Nunn, director of Berkeley Associates on a lost opportunity

Tax / Budget 2020: company car taxable benefits

As announced at Budget 2020, company car tax rates temporarily reduce to meet WLTP change, CO2 emission thresholds, and van and car benefit charges. Zak Jakubowski reports

Tax / Budget 2020: employment allowance hiked by £1,000

The Budget saw the maximum employment allowance increase by £1,000 to £4,000 from April 2020, but the government has held firm on plans to restrict the relief to employers with a NICs' bill of under £100,000

Tax / Budget 2020: CPI rise in capital gains tax exempt amount

From April 2020, the annual exemption for capital gains tax (CGT) will increase for individuals and trustees of settlements

Tax / Budget 2020: top slicing relief on life insurance amended

The Budget set out an immediate change to the tax treatment of top slicing relief (TSR) on life insurance policy gains to reinstate the reduced personal allowance and remove the higher rate cliff edge

Tax / Budget 2020: one-year extension to Enterprise Zone enhanced capital allowances

The Chancellor has announced that the 100% first year capital allowance for investments within Enterprise Zones will now remain available until at least 31 March 2021, a year longer than planned

Tax / Budget 2020: IP rules on intangible fixed assets clarified

The Chancellor used his first Budget to make further changes to the corporate intangible fixed assets (IFA) regime, bringing older well-established intellectual property rights within its scope to create a unified approach

Tax / Budget 2020: reduction in carried-forward capital losses

The Chancellor has announced a restriction in the amount that companies making chargeable gains will be able to offset using carried-forward capital losses, which will now be cut to 50%

Tax / Budget 2020: continued rebalance of climate change levy

Chancellor Rishi Sunak announced changes to the climate change levy (CCL) to continue to rebalance the electricity to gas ratio

Tax / Budget 2020: consultation on RPI methodology launched

The Budget included confirmation the government and the UK Statistics Authority (UKSA) are to consult on a proposal to address the shortcomings of the Retail Prices Index (RPI) measure of inflation, which is widely viewed as flawed

Technical Alerts

Direct Tax / ATED guidance updated

11 Mar 2020

Tax / Budget 2020: entrepreneurs’ relief limit cut to £1m

The Chancellor Rishi Sunak will not abolish the hugely controversial entrepreneurs’ relief but will slash the lifetime limit with special provisions for disposals agreed before 11 March but not completed, reports Sara White

Tax / Budget 2020: measures to help business fight coronavirus

In the first Budget since October 2018, new Chancellor Rishi Sunak has set out a comprehensive set of measures to support business and households through the coronavirus crisis with business rate relief, time to pay tax deferrals and underwriting the cost of statutory sick pay for smaller businesses, reports Sara White 

Tax / Budget 2020: motorhome road tax aligned with vans

A major shakeup of vehicle excise duty rates for motorhomes will see a hike in road tax rates which will take immediate effect, reports Zak Jakubowski 

Tax / Budget 2020: corporation tax rate kept at 19%

There will be no changes to the corporation tax rate of 19% with the Red Book confirming the current figure for 2020/21, reports Sara White 

Tax / Budget 2020: pensions tapered annual allowance raised

Chancellor Rishi Sunak has used the Budget to take action on concerns raised about the impact of the pension tax regime on senior NHS medical staff, announcing plans to significantly reduce the number affected by the tapered annual allowance, which is to increase by £90,000

Tax / Budget 2020: coronavirus business interruption loan scheme

Among a package of Budget measures to counteract the potential impact of coronavirus on business activity, Chancellor Rishi Sunak announced the launch a new, temporary coronavirus business interruption loan scheme, reports Pat Sweet

Tax / Budget 2020: HMRC to be preferred creditor in insolvency

Government plans to make HMRC a preferred creditor in any business insolvency have been confirmed, with the change now set to be introduced on 1 December rather than 6 April as originally announced

Tax / Budget 2020: private pleasure crafts must use white diesel

The Chancellor has announced that privately owned boats and yachts will have to use white diesel instead of the cheaper red diesel in their tanks to curb pollution

Tax / Budget 2020: R&D expenditure credit increased to 13%

The Budget sets out plans to raise the rate of research & development expenditure credit (RDEC) for large businesses with a 1% increase in the claimable rate

Tax / Budget 2020: non-UK resident SDLT surcharge introduced

At Budget 2020 Chancellor Rishi Sunak announced a non-UK resident stamp duty land tax (SDLT) surcharge, with the money raised to be used to help address rough sleeping, reports Pat Sweet

Tax / Budget 2020: structures and buildings allowance rate increased

In a Budget focused on supporting businesses through the current coronavirus crisis, the Chancellor announced a 1% increase in capital allowances under the structures and buildings allowance

Tax / Budget 2020: major business rates review

The Budget saw the Chancellor announce the launch of a fundamental review of business rates, due to report in the autumn, as he also revealed a number of short-term initiatives designed to mitigate the impact of coronavirus

Tax / Budget 2020: plastic packaging tax outlined

The Chancellor provided updated details of the proposed plastic packaging tax in the Budget, which have been amended in response to an earlier consultation and will now be subject to a further review

Tax / Budget 2020: zero-emission cars exempt from VED

As an incentive to reduce carbon emissions the Chancellor has announced that zero-emission cars registered from 1 April 2017 with a £40k price tag will be exempt from road tax, but road tax will increase for other vehicles, reports Zak Jakubowski 

Tax / Budget 2020: green tax break for whisky industry

In today’s Budget Chancellor Rishi Sunak said the government is expanding its support for the whisky industry by freezing spirits duty for this year and providing funding for the distillery industry to ‘go green’

Tax / Budget 2020: short haul air passenger duty frozen

Long haul rates of air passenger duty (APD) will increase in line with retail price index (RPI), as short haul rates are frozen pending a review of departure taxes

Tax / Budget 2020: VAT on digital publications abolished

Chancellor Rishi Sunak has used his first Budget to announce the abolition of what he called ‘the reading tax’, stating that there would be no VAT charged on books, magazines or journals regardless of format from 1 December

Tax / Budget 2020: NIC threshold cut confirmed

Chancellor Rishi Sunak confirmed the planned increase in the national insurance contribution (NIC) threshold, which will go up from £8,632 to £9,500 from April, reports Pat Sweet

Tax / Budget 2020: fuel tax accelerator remains in hibernation

The Chancellor confirmed at Budget 2020 that the fuel price accelerator will not be used and fuel tax will not be hiked, maintaining a 10-year freeze

Tax / Budget 2020: Chancellor confirms second autumn Budget

During his first Budget speech, the Chancellor Rishi Sunak confirmed that there would be a second Budget this autumn

Tax / Budget 2020: digital services tax will go ahead

Plans for a digital services tax to hit the largest IT digital giants will go ahead from 1 April

Tax / Budget 2020: personal allowance unchanged

The personal allowance remains at £12,500 for both this tax year and 2020/21 and was left unchanged in the Budget, reports Pat Sweet

Tax / Budget 2020: post-Brexit duty-free limits up for review

The government plans to consult on the duty-free limits of alcohol and cigarettes available to airline and ship passengers in a post-Brexit world 

Tax / Budget 2020: HMRC coronavirus helpline set up

HMRC has a set up a dedicated phone helpline to support businesses and self-employed people concerned about not being able to pay their tax due to covid-19

Tax / Budget 2020: £500m for rapid car charging hubs

Chancellor Rishi Sunak is planning a £1bn investment in green transport including new rapid car charging hubs which will ensure cars are never more than 30 miles away from a charging hub, reports Zak Jakubowski

Tax / Budget 2020: statutory sick pay relief

Chancellor Rishi Sunak identified the government’s response to coronavirus as the ‘key but not the only’ challenge in his first Budget, with opened with a series of ‘temporary, timely and targeted’ measures for individuals who fall ill

Accounting / Lookers postpones results over ‘potential fraud’

National car dealership Lookers has postponed the publication of its 2019 results after identifying potentially fraudulent transactions in one of its operating divisions

Tax / Bank of England cuts base rate to 0.25%

The Bank of England has cut base rate to 0.25% and announced a package of measures to support businesses to deal with the economic shock from Covid-19

Insight / Coronavirus toolkit: FAQs for employers

For the latest information and advice for employers on how to deal with the latest covid-19 strain of coronavirus, find step-by-step guidance in the Croner-i coronavirus toolkit

Tax / Is HMRC getting the upper hand over taxpayers in IR35 cases?

Mark Cawthron LLB CTA examines a series of recent case decisions from celebrity TV presenters to IT contractors to understand the reasoning behind the rulings on use of personal service companies, and HMRC’s one in three success rate

Technical Alerts

Direct Tax / Tax treatment of LLPs

Direct Tax / Plastic packaging tax

10 Mar 2020

Tax / eBay rejects UK plan for digital services tax

Global online marketplace eBay is calling for an international approach to digital taxation rather than countries adopting unilateral policies like the UK digital services tax

Audit / Coronavirus: what internal auditors need to know

At times of crisis internal auditors play a vital role advising on reputational risk and crisis management, explains Richard Chambers, president and CEO, Chartered Institute of Internal Auditors

Insight / Quantuma in Scottish merger with WRI Associates

Business advisory firm Quantuma has completed a merger with Glasgow based independent insolvency provider WRI Associates in its first move into Scotland

Tax / IT contractor loses £75k IR35 appeal

HMRC has won a First Tier Tribunal (FTT) against an IT contractor who contested almost £75,000 in taxes and national insurance contributions (NICs) due under off-payroll rules

Accounting / FCA focuses on climate change disclosures

The Financial Conduct Authority (FCA) is consulting on climate-related disclosure requirements for premium listed issuers

Insight / EY completes British Steel sale to Jingye

The Official Receiver and special managers from EY have sold some of the business and assets of British Steel to Chinese steel giant Jingye Steel

Tax / Q&A: tax and pension drawdown after spouse's death

In our regular Q&A series from Croner Taxwise, tax consultant, David Woolley explains the inheritance tax and income tax considerations when claiming a deceased spouse's pension

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