News

New personal savings allowance starts 6 April 2016. 

Simplification is required.

Government considering implications of recent European decision.

RPI; Basic PAYE; CIS; Gambling tax; Tax credits online; DRD.

Consultation on termination.

Justice was free, but will there be a fee?

HMRC has launched a consultation Tackling the hidden economy: Extension of data-gathering powers. The government intends to extend HMRC’s powers to gather data from third parties. These would directly affect businesses that act as intermediaries or provide electronic payment services.

Building on the principles established in the January 2015 consultation, HMRC have published Strengthening sanctions for tax avoidance - a consultation on detailed proposals outlining the detail of these measures to ensure that the changes are appropriately designed.

For serial avoiders, it includes:

The simplification of the tax and NIC treatment of termination payments is currently under consideration following an HMRC consultation document Simplification of the tax and National Insurance treatment of termination payments published on 24 July. It comes in response to the Office of Tax Simplification’s Review of employee benefits and expenses: final report published last July 2014.

Views are now sought on:

Revenue and Customs Brief 12/2015 covers the VAT liability of verandas sold with caravans in light of the Upper Tribunal’s decision in Colaingrove v HMRC that the sale of a static caravan with a veranda is a single supply for VAT purposes.

Revenue and Customs Brief 13 (2015): reduced rate of VAT for the installation of energy saving materials confirms that the government is considering the implications of the Court of Justice of the EU’s decision that the UK has applied the reduced rate on for the installation of energy saving materials too widely.

If there are to be any legislative changes, they will not be implemented before FA 2016. Until then, supplies of the installation of energy savings materials will continue to be reduced rated. 

Employers in the hairdressing and beauty sectors who pay their employees less than the national minimum wage are being targeted in a new campaign.

HMRC and the Department for Business, Innovation and Skills, supported by the National Hairdressers’ Federation and the Hair and Beauty Industry Authority, will work with hair and beauty businesses to help them understand their pay obligations to their employees. According to HMRC, analysis shows that 42% of businesses in that industry do not pay apprentices the correct minimum wage and is the focus of the campaign.