SME Tax News

HMRC have launched a consultation: 'Reforms to the taxation of non-domiciles: further consultation'.  This provides updates on the changes to the non-dom regime which were originally announced last year together with some draft legislation.

HMRC have published their Employer Bulletin for August 2016. We summarise the key content for you, with links to our detailed guidance on the topics covered.

HMRC have launched a consultation 'Strengthening Tax Avoidance Sanctions and Deterrents: A discussion document.'  This proposes new penalties for ‘enablers’ of failed tax avoidance arrangements together with a change in the way penalties are applied to users.

HMRC have launched a technical consultation: ‘Gift Aid and Intermediaries’ which proposes how the extended involvement of intermediaries should be regulated.

In Cyclops Electronics Limited and Graceland Fixing Limited V HMRC [2016] TC05234 tax planning involving an award of loan notes to directors as bonuses failed. The loan instruments were held not to be forfeitable restricted securities and were taxable as if they were cash bonuses.

HMRC have announced that their late payment rate will drop to 2.75% from 23 August 2016 following the Bank of England's decision to reduce the base rate.

As part of its Making Tax Digital (MTD), HMRC have published a consultation, ‘Making Tax Digital: Transforming the system through the better use of information’. This describes how HMRC intend to make more and better use of third party information.

As part of Making Tax Digital (MTD), HMRC has published ‘Making Tax Digital: Voluntary pay as you go’, a consultation outlining the proposed arrangements allowing for wider use of interim voluntary tax payments.

HMRC’s Making Tax Digital (MTD), means a new joined up systems for HMRC and the majority of businesses and landlords will have to use software and apps in order to complete new tax obligations. The Roadmap is the document outlining HMRC’s vision for reform and the end of the Tax Return by 2020.