Information Snippets
- Nestlé’s has lost its appeal to the Upper Tribunal over the VAT rating of its milkshake powders which leaves it facing a huge tax bill for the strawberry and banana flavours, which are standard rated, but not the chocolate version which is zero rated for VAT
- The AAT has called for the hugely complex individual savings account (ISA) regime to be overhauled to create a streamlined savings system
- HMRC is consulting on plans to implement a new minimum time limit of 12 years for making tax assessments or notices of determination in cases involving offshore income, gains or chargeable transfers
- Local councils have had their government funding almost halved and are now under immense financial pressure, according to a report by the National Audit Office (NAO) which warns that one in 10 councils with social care obligations are at risk of exhausting their reserves in the next three years
- Women’s exercise leggings and action cameras such as GoPros have been added to the basket of goods and services used to calculate inflation, while prepared mash potato returns to the list for the first time in 30 years, according to information from the Office for National Statistics (ONS)
Chancellors Spring Statement
- The Treasury has launched a consultation to assess how the VAT registration threshold can incentivise small businesses to grow after it was reported that many opt to stay below the £85,000 turnover mark to avoid paying VAT
- The next business rates revaluation is to be brought forward by one year to 2021, four years after the last revaluation, so that ratepayers can benefit from three-year revaluations announced at Autumn Budget 2017
- To encourage an innovative business environment, which includes the launch of a consultation on changes to entrepreneurs’ relief (ER) designed to ensure that it does not discourage entrepreneurs from seeking external finance for their companies
- There will be a consultation on plans to extend the existing tax relief available for self-funded work-related training by employees and the self-employed, as part of the government’s focus on creating an environment for individuals to develop their skills to boost productivity in the UK
- New legislation making online marketplaces more accountable for VAT fraud committed by online sellers on their platforms have come into force this week, as part of a package of measures in Finance Act 2018 which the Treasury says are set to raise an additional £1.2bn in tax