Tax / Tax updates: May 2019

In this month’s tax updates, cases include Loose Women’s star IR35 win while Hustle actor’s Big Bad Wolffe company loses NIC appeal, a taxpayer’s unsolicited tax returns are rejected, HMRC wins £40m Hyrax case, IR35 private sector rules released, Treasury reports on loan charge, HMRC consults on PRR and multinationals face CFC clawback

Tax / VAT receipts up 4.8% to £34.5bn in Q1

HMRC has reported total VAT receipts for the first quarter of the year were £34.5bn, 4.8% higher than the same quarter last year, continuing a long-term upward trend

Tax / Scotland’s air departure tax plans delayed

The Scottish government has announced further delays to its flagship plans to introduce an air departure tax (ADT) in Scotland, which would replace UK wide air passenger duty (APD) and offer a 50% reduction on the UK rate, to the fury of local airport operators

Tax / Young people targeted with phone tax scams

HMRC is warning young adults who may have less experience of the tax system to be especially vigilant about tax refund scams via smartphone, as fraudsters ramp up activity after the self assessment season

Tax / US multinationals owe £4.6bn in unpaid tax

HMRC is chasing US-based multinationals for £4.6bn in underpaid tax last year, up a third since 2017, as the clampdown on companies diverting profits overseas ramps up

Tax / Q&A: deemed domicile and automatic remittance

In our regular Q&A series from Croner Taxwise, tax adviser Amaira Badat considers the tax implications of the deemed domiciled rules for a non-domiciled long-term resident with foreign income below £2,000

Tax / SMEs say tax regime is not a level playing field

Businesses believes that the UK tax system is fundamentally unfair, with a bias in favour of larger companies, and want more support to stay compliant with new requirements such as Making Tax Digital, according to research by the British Chambers of Commerce (BCC)

Tax / Criminal Finances Act 2017: facilitation of tax evasion rules

HMRC is ramping up its action against businesses which fail to prevent facilitation of tax evasion by staff, but compliance levels are low. Businesses should act now given the risk of corporate criminal investigations, explains Ben Jones, tax partner at Eversheds Sutherland

Tax / Loose Women presenter wins IR35 case

Media star Kaye Adams, the presenter of ITV’s Loose Women programme, is the latest celebrity to win an IR35 challenge, with a First Tier Tribunal (FTT) finding the terms of her personal services contract (PSC) for BBC radio shows meant she was not an employee and did not have to pay some £125,000 of PAYE and National Insurance contributions (NICs), reports Pat Sweet

Tax / HMRC’s direct recovery of debt powers bring in £178m tax

HMRC is claiming the new direct recovery of debt (DRD) powers to recover money owed directly from individuals’ bank and building society accounts have raised £178m of tax revenue, against a background of a low volume of complaints, objections or appeals, with the majority settling before direct intervention was needed

Tax / Using post-cessation tax relief post Sinclair ruling

Lindsey Wicks, tax writer at Croner-i, examines the lack of clarity over the operation of rules concerning insurance proceeds received post-cessation in the wake of the Sinclair ruling

Tax / Big Bad Wolff loses £147k NICs appeal

Actor Robert Glenister has lost a NICs appeal over the operations of his personal service company (PSC), Big Bad Wolff, at an Upper Tribunal

Tax / HMRC sets out provisional rules on IR35 for private sector

HMRC has published preliminary guidance on how to prepare for changes to the off-payroll working rules from 6 April 2020, even though the consultation on the extension of the rules to the private sector has yet to close for comment

Tax / VAT Q&A: treatment of retained deposits after policy change

In our regular VAT Q&A series, Croner Taxwise VAT advice consultant Sally Atkins looks at how changes in policy have affected the VAT treatment of a deposit that is retained after an event is cancelled

Tax / Treasury consults on extension of Money Laundering Directive to tax advice

The Treasury has issued a consultation on plans to introduce the EU’s Fifth Money Laundering Directive into UK law, which will bring tax advice into the remit for the first time