Law and regulation

Tax / Reversal on care worker ‘sleep-in’ back pay causes HMRC concern

A Court of Appeal ruling on payments to care workers on ‘sleep-in shifts’, which says they should receive a flat rate per night and not the national minimum wage (NMW), is set to save social care providers £400m in back pay, but looks likely to raise a number of issues regarding HMRC’s enforcement approach

Tax / Inheritance tax accounts IHT400: clarifying the timeline

HMRC has succumbed to pressure from practitioners and estate administrators to provide a timeline for when replies to submitted inheritance tax accounts IHT400 will be received. Rebecca Goldring, manager at Blick Rothenberg explains 

Tax / Centralised EU VAT system: moving towards single one-stop shop

Is a definitive EU VAT system closer to being realised with Germany’s acceptance of a one-stop shop (OSS) for VAT on distance sales, asks Nicholas Hallam, CEO of Accordance

Tax / FB 2018-19: rent-a-room relief clampdown will target gig economy

The government is clamping down on abuse of rent-a-room relief with new rules on shared occupancy to ensure the tax relief is used for lodgers, not as a boost for gig economy renters, from April 2019

Tax / FB 2018-19: two-tier Making Tax Digital penalty regime confirmed

The penalty system for Making Tax Digital will kick in within 15 days of an overdue payment and will be a two-tier system, the government has confirmed in the draft Finance Bill 2018-19, although there will be an initial grace period for late filers

Tax / Government releases draft legislation for Finance Bill 2018-19

The government has issued draft Finance Bill 2018-19, including draft legislation for at least 33 significant measures affecting employment tax, simplification of Gift Aid, company car tax liability, Making Tax Digital penalty regime and new rules for tax under IFRS 16 Leases, reports Sara White

Tax / CIOT warns of HMRC’s failure to mediate disputes

CIOT is calling for HMRC to stick to its policies for handling and resolving disputes with taxpayers, after the institute’s analysis suggested HMRC is continuing to litigate when there is a less than 50% chance of success, contrary to its own framework, which is resulting in an increasing number of tribunal cases

Tax / Profit extraction: how flexible are directors’ loans in terms of tax liability?

Stephen Relf CTA ACA examines potential tax pitfalls for owner managed businesses when they use directors’ loans instead of conventional salary structures, from outstanding loans to repayment terms

Tax / Trusts and non doms: toughening the inheritance tax rules

The use of excluded property trusts by non-doms for tax planning purposes under Inheritance Tax Act 1984, s48(3) (IHTA 1984) is a well-accepted route, but now the old established rules have been overturned with tougher inheritance tax rules introduced in Finance Act (No. 2) 2017. Stephanie Webber CTA, tax writer at Croner-i explains

Tax / EU mandatory tax disclosure rules in force

HMRC is flagging up changes to the EU mandatory disclosure rules which mean there are new requirements starting this month with intermediaries having to report certain cross border, tax-planning arrangements to tax authorities, in a bid to tackle aggressive tax avoidance

Tax / EU sets out draft rules to amend VAT Directive to cut €50bn fraud

The European Commission has issued the detailed technical amendments to overhaul the EU rules on VAT to cut down on fraud across the 28 member states, effective from 2021, which will affect business to business VAT compliance

Tax / EU go-ahead for enterprise management incentive (EMI) tax break

The EU has breathed new life into a £380m scheme designed to broaden SME employee ownership in the UK by renewing EU state aid approval for the enterprise management incentive (EMI) scheme, which lapsed last month

Tax / Warning on VAT when disposing of assets from historic houses

HMRC has updated the rules on disposals of assets from historic houses within the scope of VAT, with guidance which cancels and replaces the previous notice from January 2002

Tax / National minimum wage back payments hit £15.6m

The number of national minimum wage (NMW) underpayments has hit a record 200,000 workers in the past year, more than double the previous year’s total

Tax / HMRC ramps up tax yield from big business investigations by 17%

HMRC is raking up its biggest successes and highest yields from investigations into tax compliance by large businesses, which produced £77 for every £1 spent last year, with an estimated £24.8bn recovered

Technical Alerts