Watson Buckle Blog
Mixed bag in Autumn Statement
The Chancellor’s Autumn Statement was a mixed bag for both individuals and businesses.
Be prepared for RTI
Real Time Information (RTI) is on its way, but do businesses know what it means, let alone prepared for it?
Is there a need for a UK GAAR?
Consultation responses to the proposed UK General Anti-Abuse Rule are due this month, but what will the proposals actually achieve?
UK Transfer Pricing – A Guide
In last month’s blog we looked at HMRC’s massive increase in their transfer pricing yield.
HMRC’s significant increase in transfer pricing yield indicates better targeting
HMRC has revealed its transfer pricing enquiries yield for 2011/12 was more than £1 billion - £1,095m to be precise.
UK and Switzerland sign amendment to double taxation convention
The UK and Switzerland have signed an exchange of letters that amends the information exchange provision in the UK/Switzerland double taxation convention covering income tax, capital gains tax and corporation tax
Tax inefficiency gifting Treasury £13.5billion
A new report has revealed that chronic tax inefficiency is resulting in HM Revenue and Customs being gifted £13.5 billion.
Why GAAR will be a bad thing for UK businesses
In June the Government is to start consulting on proposals for a General Anti-Abuse Rule (GAAR).
Intrastat declarations now due on the 21st
Businesses which are required to submit Intrastat declarations for their trade with other EU member states now need to complete their submissions by the 21st day of the month.
France and Germany go it alone in face of opposition to harmonised EU-wide Corporation Tax rate
France and Germany have announced they will “harmonise” their Corporation Tax rates by 2013 – ahead of similar proposals from the European Commission for a single “aligned” business tax rate for all of Europe.
Tax breaks for shareholders of dissolved companies to be capped
From March 1, tax reliefs for shareholders who receive a company’s assets when it is dissolved will be less favourable following Parliamentary approval.
HMRC to continue controversial records checks scheme
The controversial Business Record Checks Scheme has once again reared its head with the news that even accountants themselves are not immune to a visit from inspectors.
Associated companies – the new rules
On April 1, the associated companies rules for corporation tax were amended by the 2011 Finance Act.
Since January, the Government has been examining options to reform the UK’s CFC rules and launched three consultations that have since been carried out.
President Obama raising Social Security on high earners
Back in April, Barack Obama began to endorse one of the proposals made by his Bowles-Simpson fiscal commission - increase the amount of income subject to Social Security taxes.
Complying with the Rules of Transfer Pricing
Transfer pricing relates to the price at which goods and services are sold between divisions of a company, or between companies in the same group.
Trying It On?
Appealing against a late filing penalty on VAT or other tax might be a smart move, given that more than half of such challenges so far have proved successful, according to recent statistics.
Auto-enrolment heralds major changes on pensions
There are now less than two years to go before the first employers begin automatically enrolling their employees into workplace pension schemes under new proposals backed by the government.
Cautious optimism on the UK economy
After two budgets earlier this year, it may have come as a relief to many people that the new government has done away with the autumn Pre-Budget Report, thus ensuring there would not be a third set of tax or spending changes in 2010.
Act now on VAT changes
There are now less than two months to go until the forthcoming rise in VAT comes into effect.
Politicians go on the attack over tax
At a time when the nation’s finances are under unprecedented strain, it is easy for a politician to score a few points by attacking the antics of those wealthy individuals who they claim do not pay their fare share of tax.
IR35 is down but not out
Many self-employed workers who live in fear of being caught by the controversial IR35 legislation could be forgiven for feeling a sudden surge of optimism after HM Revenue and Customs’ defeat in the ‘Novasoft’ case earlier this year – but they should not crack open the champagne just yet.
'Tough but fair' measures unveiled by Chancellor
This month’s Emergency Budget, the first under the Conservative-Liberal Democrat coalition just six weeks after the General Election, was described as ‘tough but fair’ by its author, Chancellor George Osborne, as he unveiled the biggest package of spending cuts and tax increases in a generation.
The Emergency Budget - what's it likely to bring?
It seemed barely five minutes since the previous Chancellor, Alistair Darling, had announced his Budget for 2010 when his Tory successor, George Osborne, stepped in to say he was holding another one on June 22nd – exactly six weeks after the new coalition government took office.
Buying a 'distressed' business
While there is some evidence out there to suggest the worst of the recession may be over, the outlook is still uncertain for many firms and, unfortunately, we are likely to continue to see business failures.
Prepare for budget overload
With the government set to deliver its 2010 budget on 24 March, ahead of an expected May general election, businesses and individuals alike may find it more difficult than usual to analyse what any changes will mean for them.
HMRC targets medical professionals - others may follow
We have all become accustomed to HM Revenue and Customs’ never-ending round of crackdowns and amnesties, designed to catch people it believes may be avoiding paying tax.
The 'cash or car' dilemma
Changes to the tax laws over recent years have lessened the appeal of company cars, which were previously a standard perk for most executives and middle managers, and as the next tax year approaches, many companies and individuals may again be looking at whether continuing with such schemes are the best way forward.
The benefits of salary exchange
As businesses battle through the current economic downturn, ‘win-win’ situations are increasingly hard to find. But salary exchange could fall into such a category, allowing firms to increase the benefits they pay to staff, while at the same time reducing costs.
Transfer pricing issues
Transfer pricing - the pricing of assets, services and funds transferred within an organisation - is a constant source of worry for the financial authorities who fear the prices set may not reflect the true costs within the company, and may instead be used to minimise tax, for example by using artificially high transfer prices to shift profits from a high-tax to a lower-tax country.
Conservative Inheritance Tax Policy
With a general election possible at any time, and certainly due within less than a year, one area where a change of government could make a difference is in the field of inheritance tax (IHT).
Filing tax returns online to be made compulsory
Over the next few years, the government will be changing the way business owners have to manage and pay some taxes, and making it compulsory to file certain returns and forms online.
Tax intermediaries' role recognised
Bring out the flags and bunting! Last year's OECD report on tax intermediaries gave us a very welcome thumbs up, concluding - no surprise to us - that we play a vital role in helping taxpayers to understand and meet their tax obligations.
Loan rules are to change for connected companies
John Kinsella, tax partner talks about how HMRC is introducing new corporate tax legislation that alters the loan relationships rules affecting connected companies.
Basic-rate bailout is botched
In an effort to appease disquiet among basic-rate taxpayers, the Chancellor launched a new super income tax that could see some of the UK’s wealthiest individuals forfeit up to 60p in the pound. Essentially, it is a re-hash of the 60 per cent levy.
HMRC gets tough on tax returns
In an apparent push to reward those who complete their tax returns correctly and discourage those whose errors put them at an unfair advantage, HMRC is upping its enforcement of existing rules and introducing new ones.
John Smith, C H Wood Security (Bradford) Ltd