Personal tax

Tax / Tax gap of £31bn shows downwards trend

The tax gap, which is the difference between tax that should be paid and what is actually paid, has fallen to 4.7%, its lowest recorded rate, according to HMRC estimates

Tax / Chancellor urged to go further with Covid-19 support

Early reaction to the Chancellor’s summer update of measures to combat the economic challenges posed by Covid-19 has been largely positive, although there has been surprise at the lack of support for some badly affected sectors such as retail and aviation

Tax / Summer update: Chancellor offers job funding, VAT cuts and eat out discounts

Just four months after his first Budget, Chancellor Rishi Sunak has unveiled a summer economic update designed to mitigate the impact of the Covid-19 pandemic, with a commitment to encouraging job creation through a government ‘plan for jobs’ and stimulus for consumer spending

Tax / HMRC drops benefit in kind charge on Covid-19 tests

HMRC has been forced into a rapid U-turn after publishing guidance indicating that employees would face a taxable benefit in kind when their employer pays for coronavirus testing, following an outcry from MPs

Tax / Chancellor’s plans to reset economy post-Covid

Chancellor Rishi Sunak is to deliver a ‘summer economic update’ tomorrow, 8 July, outlining the government’s plans to support the economy through the first phase of recovery from the coronavirus crisis, with likely options including temporary tax cuts, funding for green projects, and job creation schemes

Tax / HMRC shifts guidance on public access to national treasures

Covid-19 has prevented access to land and property of significant national value, but HMRC is granting owners leeway over its tax incentive scheme, say Withers’ Charlie Tee and Louise Williamson

Tax / Hidden tax risks of raiding the pension pot

Extracting cash from your pension might seem an obvious source of income during the Covid-19 crisis, but complex tax rules mean it should only be a last resort, says LEBC Group’s Kay Ingram

Tax / HMRC tax credits renewal ‘glitch’ warning

Tax credit claimants urged to check their renewal figures and tell HMRC if any changes need to be made by 31 July, or risk receiving too much or too little credits which will be clawed back through possible penalties

Tax / IHT and CGT in spotlight as deficit leaps

The growing budget deficit is concentrating minds on radical reforms to inheritance tax, which now appear more attractive in the current climate, say Judith Millar and Alastair Collett of BDB Pitmans

Tax / Call for carbon taxes to offset Covid-19 costs

The Treasury should make more use of carbon taxes and consider other changes in tax policy in order to support efforts to reduce greenhouse gas emissions and bolster public finances, according to the Committee on Climate Change (CCC)

Tax / Home office workers risk expense claims tax trap

RSM tax partner Chris Etherington highlights the tax allowances for working from home, but warns against designating a room solely as an office

Tax / Call for ‘alternative minimum tax’ on UK’s richest

The government is missing out on up to £20bn a year in tax from the UK’s richest individuals, because of the failure to tax all income and capital gains at the same rate as earnings, according to academic research

Tax / 75% of workers support Covid tax hike

Over threequarters of UK workers are willing to pay additional income tax to fund the government’s £300bn of borrowing to fund the Covid-19 response, with many labelling the move ‘a necessary evil’, a survey by AJ Bell has found

Tax / UK’s richest in line for £23bn coronavirus savings

The richest 20% of UK households are set to save £23bn by mid-June as a result of reduced spending during lockdown, more than six times as much as the savings made by the poorest 20% of households, according to calculations from the New Policy Institute (NPI)

/ Covid-19: mental health concerns for accountants and SMEs

Wellbeing amongst finance professionals and the small businesses they advise has taken a dive since lockdown restrictions were enforced in March, according to separate surveys by recruiting experts Hays and ACCA released during Mental Health Awareness Week