The latest report from the Office of Tax Simplification review into capital gains tax makes recommendations in areas such as the UK residential property return, moving home, divorce and separation. It also highlights the low level of public awareness and where improved guidance is needed.
The Office of Tax Simplification (OTS) review into capital gains tax (CGT) was requested by the Chancellor in July 2020. The first report, published in November 2020, focused on policy and design considerations.
The second report, published on 20 May 2021, considers practical, technical and administrative improvements that could be made. Many of recommendations reflect the need to modernise rules and guidance so that they align with the way people live today rather than when CGT was introduced in 1965.
Companies are being urged to get a better handle on their supply chain following guidance issued by HMRC on mini-umbrella company fraud, however market participants have criticised the body’s approach.
“HMRC is pushing out the moral imperative saying big companies have a moral obligation to make sure that everything that sits below is fair and transparent,” says Matthew Sharp, tax disputes director at Fieldfisher.
“It’s very interesting the way that HMRC’s press team have positioned this as a problem with umbrella companies,” he says. “There are a lot of very reputable umbrella companies out there, who are doing exactly what they mean to be doing. The problem isn’t with umbrella companies, it’s with the rogue operators who are abusing things like employment allowance for national insurance purposes.”
Need to know
ICAEW urges members to be aware of mini-umbrella companies: HMRC has issued new guidance on the fraudulent activities of so-called ‘mini-umbrella companies’ sometimes created to avoid paying tax and national insurance. ICAEW’s Tax Faculty calls on members to ensure they are informed.
Bounce Back Loans - getting ready to repay: Businesses are being contacted by their banks about repayment of Bounce Back Loans. If repayments are not affordable, businesses should consider their options and take action.
CJRS - is an employee receiving fixed or variable pay? Whether an employee has fixed or variable pay is a key concept for calculating amounts that can be claimed under the Coronavirus Job Retention Scheme. The Tax Faculty explain that the classification of some employees is essentially the employer’s choice.
IR35: MPs urged to back ‘curb or kill’ umbrella company-focused Finance Bill amendments
Two amendments to the incoming Finance Bill that have the potential to ban the use of umbrella companies are being voted on by MPs in the House of Commons today
Share this item with your network: By Published: 24 May 2021 10:57
MPs are being urged to vote in favour of two proposed amendments to the incoming Finance Bill that are intended to stamp out malpractice among unregulated umbrella company operators.
The amendments – tabled by David Davis MP with the support of Sir Iain Duncan Smith MP and Andrew Rosindell MP – call on chancellor Rishi Sunak to carry out an impact review of clause 21 of the Finance Act, which concerns workers that provide services through intermediaries.
Good morning and welcome to your Morning Briefing for Friday 21 May, 2021. To get this in your inbox every morning click here. CGT overhaul on hold for now The Covid-19 pandemic has cost the UK a fortune but the taxpayers don't know it yet. Therein lies chancellor Rishi Sunak's dilemma: the politics and economics are