UK: Tax Gap Statistics Published
A press release by the UK government on 15 June 2018 confirmed that the tax gap for 2016/17 was an estimated GBP 33 billion or 5.7%. The tax gap is the difference between the tax that the government considers should have been paid and the actual
See MoreUK published draft order to bring BEPS MLI into Effect
UK HM Treasury has laid before the House of Commons the draft Double Taxation Relief (Base Erosion and Profit Shifting) Order 2018. After the order is approved, the UK must then deposit its ratification instrument to enter into force in the
See MoreUK: Consultation discusses the use of cash in tax evasion and financial crime
On 13 March 2018 the government issued a call for evidence entitled “Cash and digital payments in the new economy”. HMRC notes that the use of cash can present problems with tax compliance because people dealing in cash may have problems
See MoreUK: Use of taxation or other charges to reduce plastic waste
The UK has set a goal to eradicate all avoidable plastic waste by 2042 and is examining how economic incentives can be used to encourage sustainable behaviour. A number of measures have already been taken to reduce waste such as the Landfill Tax;
See MoreUK: update on corporate taxation and the digital economy
In March 2018 the UK has issued an updated position paper on corporate taxation and the digital economy, following an earlier consultation on the issue. The UK government considers that the engagement and participation of users is important for
See MoreUK: Chancellor delivers 2018 Spring Statement
The Chancellor delivered the Spring Statement on 13 March 2018. As the main budget announcements have now been moved to autumn, the spring statement gave a summary of the economic position and indicated areas on which the government is consulting
See MoreIMF Report Calls for More Efficient UK Economy
An IMF assessment of the UK economy published on 14 February 2018 concludes that the UK economy must become more efficient. The UK economy is being held back by uncertainty following the decision to exit the EU. The weaker pound has caused higher
See MoreUK: Review of the corporate intangible fixed assets regime
At the Autumn Budget in November 2017 the UK government announced a review of the corporate intangible assets regime. This regime introduced in April 2002 allows companies tax relief for the cost of acquisition of intangible fixed assets and
See MoreUK: HMRC wins case on employment status
HMRC has won a case concerning employment status and the IR35 rules. The IR35 legislation aims to ensure that in defined circumstances individuals working for an intermediary such as a personal service companies pay the same tax as an employee
See MoreUK: Research on knowledge and use of VAT partial exemption
HMRC commissioned a telephone survey of almost two thousand VAT registered businesses representing 17 different industry sectors. The aim was to explore their knowledge and use of VAT partial exemption and to gain information on rates of VAT
See MoreUK: Research on small producers and importers of soft drinks
The introduction of an industrial levy on the production and import of sugary drinks was announced in the 2016 Budget and is to come into force in April 2018. In connection with the planned levy on sugary drinks HMRC commissioned research on small
See MoreUK: Increase in average length of tax investigations of large companies
It was reported on 15 January 2018 that recent figures from HMRC indicated an increase in the length of time taken to conduct tax investigations of large companies in the UK. In the year to 31 March 2017 the average length of time for investigations
See MoreUK: Making Tax Digital – survey of small businesses and landlords
On 11 December 2017 HMRC published a survey of the attitudes of small businesses and landlords towards the requirements of the Making Tax Digital (MTD) changes to be introduced in the UK. This research commissioned by HMRC involved a survey of 2,900
See MoreUK: Statistics on venture capital trusts
On 14 December 2017 the UK published statistics relating to venture capital trusts (VCTs) for tax years up to 2015/16. The data was collected from self-assessment tax returns and does not therefore cover investors claiming income tax relief through
See MoreUK: Draft VAT Notice and Legislation on Making Tax Digital
On 18 December 2017 HMRC published draft VAT regulations, a draft explanatory memorandum and draft VAT Notice, for consultation. The regulations relate to the introduction of Making Tax Digital (MTD). Comments from interested parties are invited by
See MoreIMF report looks at the UK economy
On 20 December 2017 the International Monetary Fund (IMF) published on its website a report following consultations with the UK under Article IV of the IMF’s articles of agreement. The IMF report notes that owing to the aging population in the UK
See MoreUK: Withholding tax on payments for intellectual property used in the UK
On 1 December 2017 the UK published a consultation paper on extending royalty withholding tax in relation to connected persons not resident in the UK. Comments are invited from interested parties with a submission deadline of 23 February 2018. It
See MoreUK: Scotland introduces changes to income tax rates
On 14 December 2017 Scotland’s Finance Secretary announced the draft Scottish budget for 2018-19. The main points relating to taxation are as follows: The basic rate of income tax has been frozen at 20%, but a new intermediate rate of 21% will
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