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Sep 5

Corporation tax receipts rocket

Figures from the Office for Budget Responsibility show corporation tax receipts have surged since the rate was cut. The levy raised £57.6bn last year, when firms handed over 19% of profits. That was 44% more than in 2010 when corporation tax was 28%. Corporation tax receipts have also risen 26% since the EU referendum. Sam Dumitriu of the free market Adam Smith Institute think-tank said the figures should prompt ministers to reduce tax on firms which invest. “A competitive corporate tax rate has made Britain a more attractive place to do business,” he said.

Source: Daily Mail (30/08/2018)

 

 

Sep 5

Slow roll-out damages MTD’s benefits

HMRC has admitted that its Making Tax Digital programme will end up costing businesses more than it saves them. Original forecasts said the scheme would save businesses £100m a year from 2021 but its annual report reveals there will be no cost savings and the extra work will end up costing firms £37m a year. HMRC said the change to its forecast was due to the fact that only companies with turnover of more than £85,000 will have to file returns digitally, whereas, initially, it was to include all businesses. Most of the savings from the scheme would have been made by companies below this threshold, HMRC said.

Source: The Mail on Sunday (02/09/2018)

 

Aug 29

SMEs fear further cuts to dividend allowance

Philip Hammond has been urged not to further slash the tax-free dividend allowance for directors and investors in the autumn Budget. The chancellor first cut the dividend allowance from £5,000 to £2,000 a year in the 2017 Budget, but the Federation of Small Businesses is concerned the Treasury may order further cuts to help plug the funding gap for the NHS. Removing the allowance completely would net the Treasury an extra £1.3bn by 2022, the FSB estimates, on top of the £2.6bn it forecast it would gain from the original cut. “We need to back small businesses and their shareholders – not clobber them with a secret tax grab,” said FSB chairman Mike Cherry.

Source:   The Daily Telegraph (28/08/2018)

 

 

 

 

Aug 29

Businesses cautiously welcome no-deal guidance

Adam Marshall, director general of the British Chambers of Commerce, has welcomed the Government’s decision to publish its no-deal strategy documents, although he said preparation should have happened “far earlier”. Allie Renison, Head of Europe and Trade Policy for the Institute of Directors, said the government needs to ensure the no-deal information “trickles down to all businesses in the supply chain, particularly to smaller firms which are typically less resourced, and are less likely to have made preparations so far”. Federation of Small Businesses chair Mike Cherry agreed that smaller firms are most vulnerable, saying: “If you are a small business that trades with the EU or employs someone from the EU, or if you a self-employed EU citizen working in the UK, you need easily accessible information that will explain how a sudden Brexit will impact you and your business while providing practical steps to soften this impact.”

Source:   The Independent (23/08/2018)

 

 

Aug 29

"Grossly unfair" HMRC lifts late payment interest rate

HMRC has raised the rate it charges people and businesses for late tax payments by 0.35 percentage points to 3.25%. The move follows the Bank of England’s latest quarter-point rate rise to 0.75%. The repayment interest rate - the rate HMRC levies on top of sums it owes to taxpayers - has remained at 0.5% since 2009. Tom Selby, a senior analyst at investment platform AJ Bell, said: “It seems grossly unfair for HMRC to increase the late payment rate for those who owe it money without doing the same thing when it owes other people money”.

Source:   The Times (23/08/2018)

 

Aug 3

August 2018 Blog

 Our newsletter this month includes: details of HMRC’s proposed points-based penalty system, an outline of changes to the rent-a-room-relief, a few pointers to when Capital Gains Tax may be payable and a strategy to ask a government department to sell property.

Our next newsletter will be published on Thursday, 6th September 2018.

 

 

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