- Half of small businesses in the UK says HMRC tax investigations are too intensive, and a similar proportion do not believe the tax authority imposes penalties fairly, according to analysis from specialist insurer PfP
- Life insurance premiums paid by employers to provide death benefits for their workers will be tax-exempt regardless of the beneficiary of those benefits, under proposed HMRC legislation
- Businesses which provide charging facilities for employees with plug-in hybrid or electric cars will be exempt from income tax and National Insurance contributions on any liability from providing this service, government has explained through draft legislation, effective from 6 April 2018
- Following an earlier consultation, the government is proposing to allow non-corporate entities to join VAT groups, subject to certain conditions, with a measure included in draft Finance Bill 2018/19
- HMRC is warning employers of problems with its online PAYE service, which include failure to supply employers with this year’s P9 tax code notices and instances where PAYE accounts are not showing the latest position. If you are experiencing any problems email Paul on paul.newson@avantigroup.uk.com
- HMRC has issued guidance on disguised remuneration schemes, whereby loans are paid instead of ordinary income to avoid income tax and National Insurance contributions (NICs), with users of such tax avoidance schemes now facing charges if they have not repaid their loan or agreement settlement by 5 April 2019
- Suggestions that the government is planning a new ‘sin tax’ on vaping, in order to raise an additional £40m in tax revenue to help fund its commitment to a £20bn boost in NHS funding, have been strongly opposed by the UK Vaping Industry Association (UKVIA) on the grounds the move risks damaging public health
- The rates of interest charged on late paid tax are generally set at 2.5% above the base rate, which of course increased immediately with the rise in base rate. However, HMRC will pay interest on tax refunds or tax overpayments in certain circumstances, which vary from tax to tax, but the rate paid is consistent for all taxes: 5%. This derisory low rate has not moved since September 2009. The reason for this is that the repayment interest rate is set at 1% below the bank base rate with a minimum rate of 0.5%.