COVID-19 is likely to further spur the global trend towards tax digitalisation. David Lyford-Smith from ICAEW’s Tech Faculty considers changes that will help automate processes to make them more efficient and points to ongoing challenges, such as digital exclusion.
The coronavirus pandemic has placed a massive challenge in the path of tax authorities globally. They have had to continue with business as usual during the crisis while managing additional work and support schemes within short timescales, explains David Lyford-Smith, a technical manager with ICAEW’s Tech Faculty.
In some instances, the pandemic has led to process adjustments and deadline extensions. For example, in March 2020, HMRC in the UK allowed businesses participating in Making Tax Digital (MTD) for VAT more time to implement digital links in their recordkeeping.
Last modified on Fri 23 Apr 2021 08.12 EDT
Speculators in Bitcoin have been left nursing heavy losses after reports Joe Biden is planning to raise taxes on the wealthiest Americans to tackle inequality and finance trillions of dollars in higher social spending.
The cryptocurrency price fell more than 6% to below $50,000 (£36,000) a bitcoin, hitting the lowest level since early March, as the White House puts the finishing touches on plans to almost double the rate of capital gains tax for rich individuals.
For those earning $1m or more, the tax on investment income would rise to 39.6%, up from a current rate of 20%, as part of plans expected to be announced next week. A 3.8% tax on investment income used to fund Obamacare would also be kept in place, meaning the new top rate would be as high as 43.4%.
ACA calls for tax changes to be realistic, manageable and proportionate for schemes
The ACA has called for sensible initiatives to simplify the processes of the pensions tax system.
The Association of Consulting Actuaries (ACA) has called for sensible initiatives to simplify the processes of the pensions tax system.
In its response to the Office of Tax Simplification s (OTS) January call for evidence on its third-party data reporting review - published today (15 April) - the ACA said the Treasury arm had to make it easier for pension savers to accumulate wealth for retirement.
The ACA has long called for a fairer overview of pensions tax on behalf of its adviser member body, who provide advice to the providers of workplace schemes and their sponsors.
Tony Wickenden: Making the most of clients’ CGT exemption
Freezing of the annual limit should not prevent advisers from showcasing the many ways they can take advantage of it
By Tony Wickenden 14
th April 2021 10:50 am
Chancellor Rishi Sunak took his first tentative (though predictable) steps to start to “repair public finances” in his Budget last month.
The focus was on two changes not immediate and probably not terribly well understood: freezing the income tax thresholds and allowances until the end of the 2025/26 tax year, and the deferred corporation tax increases from 1 April 2023.
Holding the income tax thresholds and allowances was not all that happened on the personal tax front, though. As well as freezing the inheritance tax nil-rate band and residence nil-rate band, the capital gains tax annual exemption will remain at its current level of £12,300 for individuals and personal representatives until the end of 2025/26.
MPAA freeze to hit low earners, research finds
By Jean-Baptiste Andrieux 12
th April 2021 11:29 am
Freezing the money purchase annual allowance at £4,000, coupled with static personal tax thresholds, will increase the number of basic-rate taxpayers who fall foul of the tax trap, new research from Just shows.
Even employees contributing the minimum 8 per cent of salary to a workplace pension might start to feel the squeeze as pension contributions will exceed the allowance, the group’s calculations suggest.
The 20 per cent marginal income tax threshold for 2021/22 was £50,270, which means that someone earning that amount will have put £4,021 into their pension, just above the £4,000 MPAA limit.