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Archive for the ‘Tax’ Category

Top 1.5 per cent of earners to pay £20bn more in income tax

Sunday, January 15th, 2017

The Chancellor

Half of all additional income tax collected by the Government by 2021 will be paid by the top 1.5 per cent of earners as hundreds of thousands of people are dragged into paying the top rate, figures have shown. Just 469,000 people earning more than £150,000 a year will account for almost £20 billion of additional income tax paid to the Treasury, a record high according to the Office for Budget Responsibility (OBR).

Senior Conservative MPs on the Treasury select committee called on Philip Hammond, the Chancellor, to look again at the tax system in the wake of the figures and warned that the burden should be spread more widely. The number of people paying the additional 45 percent rate has increased from 0.75 percent in 2010 to 1.1 percent today and will rise further to 1.5 per cent in 2021 as a result of the threshold being frozen by successive Chancellors. More people will pay no tax at all on their income in 2021 than those who pay the top rate, OBR analysis has shown. But there are fears that additional rate taxpayers may choose to move their money into incorporated companies instead, in order to avoid higher tax bills.The OBR estimates the Government may lose more than £3 billion in tax it expects to bring in from those earning more than £150,000 a year because of such a  shift.

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“Not enough time” to implement MTD by 2018, says Tyrie

Thursday, January 12th, 2017

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ANDREW TYRIE has suggested there will not be enough time to implement Making Tax Digital (MTD) by April 2018.

In correspondence between Andrew Tyrie, chairman of the Treasury committee and Jane Ellison, financial secretary to the treasury, the government’s response for MTD consultations were discussed, with Tyrie outlining a lack of time to implement the controversial tax reporting regime by the planned date. Mr Tyrie said of the correspondence: “It is welcome that the government has decided not to rush its response to HMRC’s consultation. But this may mean that there is insufficient time for adequate consultation to take place on the draft clauses, once published.”

Page 41 of the Autumn Statement document states: “In January 2017, the government will publish its response to the Making Tax Digital consultations and provisions to implement the previously announced changes.”

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Hard Brexit could cost the UK £10bn in lost taxes

Tuesday, October 4th, 2016

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UK banks fear they may lose passporting, or the ability to do business with the whole of the EU in the event of a ‘hard Brexit’ Chancellor Philip Hammond is to present his first budget statement in November, setting out how the government will use tax and spending plans to shore up the UK economy after the vote to leave the EU Getty. A so called “hard Brexit” deal, which would see the UK drifting away from cooperation with the rest of the EU, could cost the UK billions in lost taxes, treasury officials have privately warned. The hardline approach to UK’s vote to leave the EU – favoured by some leading Conservative Eurosceptic ministers – includes leaving the European single market and ending free movement.

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The deadline to register for Self-Assessment Tax Returns is looming – here’s what you need to know

Tuesday, October 4th, 2016

Looking to file a Self-Assessment Tax Return for the first time? You’ve only got a few weeks left to register

If you’ve recently become self-employed, or you received any additional income during the previous tax year, you’ll be expected to file a self-assessment tax return.

In order to do this, you’ll need to register for self-assessment with HMRC – and the deadline for this is looming.

Here’s all you need to know about registering for self-assessment tax returns.

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What Brexit means for accounting, employment and taxation law

Friday, August 19th, 2016

eu flag  brexit

WITH new UK prime minister Theresa May apparently determined to fulfill the wishes of the Brexit referendum result backing Britain leaving the European Union, what EU accounting and taxation laws will ultimately remain on the British statute? The PM has made it clear she recognises that a key force behind the ‘leave’ vote was a dislike of unrestricted EU immigration into Britain, and should she satisfy that demand, the prospect of the UK becoming a non-EU member of the European Economic Area (EEA) will become most unlikely.

Non-EU EEA states such as Norway and Iceland have to accept EU immigration (with some recourse to emergency controls in cases of social unrest) in return for admission to the EU single market for industrial goods and services, which of course includes accountancy. No such admission to the EU single market for services exists for Switzerland, which retains strong links with the EU, but which is also mulling EU immigration controls. So single market laws laying down rules on accounting, bookkeeping and company formation may not apply in Britain, assuming it will quit the EU, which could well happen within 2019 under the EU’s article 50 schedule for departing member states.

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Jane Ellison takes over from Gauke as ‘tax minister’

Thursday, August 18th, 2016

HMRC banknotes

A new ‘minister for tax’ has been appointed following the government reshuffle by new prime minister Theresa May. Jane Ellison, Conservative  MP for Battersea, has been named financial secretary to the Treasury – under which tax policy is likely to come under her remit. Ellison has served as public health minister for the past three years. She takes on the Treasury-based remit from David Gauke, following a successful term in which he has been well-received by the tax profession for his efforts. He steps up to chief secretary to the Treasury, a role that will see him support new chancellor Philip Hammond.

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Cut stamp duty in half, axe buy-to-let hike, and relax rules so developers can build ‘taller and denser’, campaign group urges

Thursday, August 18th, 2016

Time for cuts: Stamp duty should be immediately cut in half and eventually abolished, The Taxpayers' Alliance Claims

Stamp duty rates should be cut by 50% now and later abolished, group say

April’s 3% stamp duty hike will hurt tenants facing rent rises, group claim

Declassify green belt land and build ‘taller, denser’ homes, report suggests 

Stamp duty on homes should be slashed in half and eventually abolished, a campaign group is urging. Blasting stamp duty as a ‘badly-designed tax which gums up property markets’, The Taxpayers’ Alliance suggested that it should gradually be phased out. It added that the extra three per cent stamp duty surcharge for buy-to-let and additional homes in particular should be abolished, warning that it will drive up rents for tenants as investors pass on costs. Declassifying some green belt land, while allowing ‘taller, denser construction’ in urban areas will also be necessary to resolve Britain’s housing shortage, a report by the campaign group claims. Describing stamp duty as a ‘disastrous, unfair and unnecessary tax’, the report suggests the additional stamp duty hike will exacerbate supply shortages and drive up rents for tenants. Jonathan Isaby, chief executive of the TaxPayers’ Alliance, said: ‘For decades politicians have failed to tackle the root causes of the housing crisis: a chronic lack of supply.  ‘What’s more, stamp duty is still punitively high and gimmicky tweaks to the tax system will ultimately end up penalising tenants and increasing rents.

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