A survey carried out by resource management firm Veolia has revealed that 83% of businesses polled were not aware of the Plastic Packaging Tax, which is due to take effect from April 2022. The Plastic Packaging Tax is a new tax that will apply to plastic packaging manufactured in or …
Ireland’s Debt Warehousing Scheme gets an extension
In June, the Irish government as part of their Economic Recovery Plan 2021, announced that there would be an extension of the period during which tax debts could be warehoused under their Debt Warehousing Scheme. Additionally, the scheme would be expanded to cover Employment Wage Subsidy Scheme overpayments. Originally announced …
Over 280,000 families now using Tax-Free Childcare
More than 282,000 working families used a Tax-Free Childcare (TFC) account during March, according to figures from HMRC. HMRC said that it is the highest recorded number of families in any one month since the scheme was launched in April 2017. These families received a share of more than £33 …
800,000 claim tax relief for working from home
Almost 800,000 employees who have been working from home during the pandemic have already claimed tax relief on household related costs, HMRC has confirmed. The saving is worth up to £125 per year for each employee, and eligible workers can claim the full year’s entitlement if they have been told …
OTS considers moving tax year end
The Office of Tax Simplification (OTS) is set to explore the benefits, costs and wider implications of changing the date of the end of the tax year for individuals. The review will focus on the implications of moving the tax year end date from 5 April to 31 March or …
G7 announces global tax agreement
The G7’s finance ministers have announced a historic international agreement on global tax reform. Following years of discussions, finance ministers agreed to reforms, which they say will see multinationals pay their fair share of tax in the countries in which they do business. The ministers also agreed to the principle …
Plastic bag charge doubled in all shops in England
The single-use carrier bag charge rose from 5p to 10p and was extended to all businesses in England on 21 May. The government said all stores, including corner shops, will now have to apply the charge. The 5p levy on plastic bags was introduced in England in 2015. Since then, …
HMRC’s VAT Deferral New Payment Scheme to close in June
Businesses that deferred VAT payments last year have one month left to join online and pay in monthly instalments under the VAT Deferral New Payment Scheme, HMRC has confirmed. The online portal for the new payment scheme will close on 21 June 2021. Over half a million businesses deferred £34 …
CBI calls for overhaul of government policy on environmental taxes
The Confederation of British Industry (CBI) has urged the government to overhaul its policy on environmental taxes to help the UK get back on track to reach net-zero. In a new report, the CBI stated that the scale of climate challenge and the delivery of the government’s plans for a …
Government to invest over £100 million in COVID fraud taskforce
Chancellor Rishi Sunak used the 2021 Budget to announce an investment of more than £100 million into a HMRC taskforce designed to combat coronavirus (COVID-19)-related fraud. The new Taxpayer Protection Taskforce will seek to crack down on criminals who attempt to fraudulently claim money via government COVID-19 financial support schemes. …
Committee calls for Chancellor to outline plans for tax reform
The Treasury Committee has urged Chancellor Rishi Sunak to outline plans for a long-term tax strategy to help the UK economy recover from the coronavirus (COVID-19) pandemic. In a new report, the Committee stated that public finances are ‘on an unsustainable long-term trajectory’ as a result of projections of rising …
Late payment penalties for self assessment waived until 1 April
Self assessment taxpayers will not be charged a 5% late payment penalty if they pay their tax or set up a payment plan by 1 April, HMRC has announced. The payment deadline for self assessment is 31 January and interest is charged from 1 February on any amounts outstanding. Normally, …
HMRC clarifies off-payroll rules
HMRC has published a briefing on its approach to the changes to off-payroll working rules, commonly known as IR35, which will be introduced on 6 April 2021. Reiterating its advice from last year, HMRC has confirmed that it will not issue penalties for inaccuracies in the first 12 months of …
Clarity needed on taxation of COVID test costs, says ICAEW
The Institute of Chartered Accountants in England and Wales (ICAEW) has urged HMRC to confirm whether coronavirus (COVID-19) antigen tests paid for by employers will continue to be exempt from income tax and national insurance after 5 April 2021. Guidance published by HMRC states that employers and employees will not …
HMRC’s customer service levels impacted by COVID-19
Data published by HMRC has revealed that its customer service levels have been adversely affected by the coronavirus (COVID-19) pandemic. HMRC stated that this is a unique financial year as the department continues to operate ‘at the heart of the government’s COVID-19 response’. According to HMRC, the pandemic has ‘reinforced …
Almost a third of house sales fall through as stamp duty deadline nears
Almost a third of house sales fell through in January as the end of the stamp duty holiday drew closer, according to a report from Rightmove. The report said 29% of proposed purchases collapsed across Britain during the month – a figure that has slowly accelerated month-on-month since November last …
1.8 million still to file self assessment returns
The self assessment deadline on 31 January was missed by 1.8 million taxpayers, according to figures from HMRC. However, those with a late tax return will not be charged a late filing penalty provided they submit their return online by 28 February. HMRC’s data showed that over 10.7 million people …
Making the most of R&D
UK companies spent over £25 billion on Research and Development (R&D) during 2018, and HMRC’s statistics show that the volume of R&D relief claimed by small and medium sized companies (SMEs) is increasing. However, many eligible SMEs are still not claiming the relief. This is often due to a lack …
UK tax system ‘discourages employment and investment’, IFS suggests
The Institute for Fiscal Studies (IFS) has suggested that the current UK tax system discourages employment, investment and corporate risk-taking and needs reform. Research carried out by the IFS suggested that employees’ salaries attract thousands of pounds more in tax each year than the incomes of individuals who are self-employed …
HMRC waives self assessment penalties for a month
Self assessment taxpayers will not be fined for late online returns if they file by 28 February, HMRC has said. More than 8.9 million taxpayers have already filed their tax return. HMRC is encouraging anyone who has not yet filed their tax return to do so by 31 January, if …
LITRG calls for rise in High Income Child Benefit Charge threshold
The Low Incomes Tax Reform Group (LITRG) has urged the government to raise the High Income Child Benefit Charge (HICBC) threshold to avoid it affecting basic-rate taxpayers for the first time in April. The LITRG stated that this goes against the original policy intent, and is ‘likely to cause the …
IR35 status check failing to deliver results in a fifth of cases
HMRC’s enhanced version of the check employment status for tax (CEST) tool is failing to make a determination for one in five off-payroll workers, according to HMRC’s statistics. Reforms to off-payroll working regulations, known as IR35, are set to be introduced to the private sector in April next year. The …
CGT rise would adversely affect entrepreneurs, warns IoD
The Institute of Directors (IoD) has warned the government that a rise in capital gains tax (CGT) would affect Britain’s entrepreneurial spirit. The business group believes CGT could be targeted by the Treasury and increased in order to help put public finances back on a stable footing following the coronavirus …
HMRC cracks down on marketing of tax avoidance schemes
HMRC has teamed up with the Advertising Standards Authority (ASA) to act against misleading marketing by promoters of tax avoidance schemes. A joint enforcement notice aims to disrupt the activity of promoters and protect people from being presented with misleading adverts which may tempt them into tax avoidance. It requires …
PAC calls on government to give ‘honest picture’ of UK tax gap
The Public Accounts Committee (PAC) has urged the government to give a ‘more honest’ picture of the likely levels of the UK tax gap. The tax gap is the gap between the tax that should be paid on the UK’s economic activity and the tax that HMRC actually collects. According …
Up to £3.5 billion in furlough payments fraudulent, HMRC finds
HMRC has revealed that almost £3.5 billion in Coronavirus Job Retention Scheme (CJRS) payments have been claimed fraudulently or paid out in error. HMRC told the Public Accounts Committee (PAC) that it estimates that between 5% and 10% of CJRS funds have been provided in error. According to the PAC, …
UK plastic bag tax charge to be doubled and extended to all retailers
The fee for plastic shopping bags in England will be doubled to 10p and extended to all shops from April 2021. Small retailers – those employing 250 people or fewer – will no longer be exempt, the Department for Environment, Food and Rural Affairs (Defra) said. According to Defra, since …
Government further extends Tax-Free Childcare scheme as result of coronavirus
The government has further extended Tax-Free Childcare (TFC) to 31 October 2020 for parents who may have fallen below the minimum income requirement as a result of the coronavirus (COVID-19) pandemic. HMRC confirmed that key workers who may exceed the income threshold for the 2020/21 tax year as a result …
ICAEW warns taxpayers have 90 days to notify HMRC of overclaimed COVID-19 grants
The Institute of Chartered Accountants in England and Wales (ICAEW) has warned taxpayers that they have 90 days to notify HMRC of overclaimed coronavirus (COVID-19) grants. The 90-day period to inform HMRC of any overclaimed amounts is now law: Finance Act 2020 recently received Royal Assent, which confirms the taxability …
HMRC publishes guidance on claiming Job Retention Bonus
HMRC recently published guidance on the eligibility requirements for the Job Retention Bonus. From February 2021, employers will be able to claim the Job Retention Bonus through the gov.uk website. The Job Retention Bonus will be a one-off payment of £1,000 to the employer for every eligible employee that is …