March - 2021

Archives

US threatens tariffs over UK digital services tax

Inchmead

Mar 31, 2021
1 min

US threatens tariffs over UK digital services tax

The United States Trade Representative (USTR) has announced a series of hearings in the next steps in its Section 301 investigations of digital service taxes (DSTs) adopted or under consideration by 10 US trading partners. It is also threatening to levy tariffs of up to 25% on certain British imports in retaliation. In January, USTR found that the DSTs adopted by Austria, India, Italy, Spain, Turkey, and the UK were subject to action under Section 301 because they discriminat

Business rate payers cannot claim 'material change of circumstance'

Inchmead

Mar 29, 2021
2 min

Business rate payers cannot claim 'material change of circumstance'

Many of those that did not qualify for reliefs under the government’s covid-19 rates relief for businesses in retail, hospitality and leisure, for example, have been appealing for discounts on their rates bills, arguing the pandemic represented a ‘material change of circumstance’ (MCC). The government will not accept this argument and plans to legislate against the use of the material change of circumstance arguments used by businesses stating that market-wide economic change

Small businesses spend up to £3,500 for MTD migration

Inchmead

Mar 26, 2021
2 min

Small businesses spend up to £3,500 for MTD migration

The HMRC research report found that ‘costs were more keenly felt at the point of transition, but less so as time progressed. Benefits were felt less tangibly than costs, and tended to emerge with regular use of MTD for VAT compatible software’. At the point of engaging with MTD for VAT, businesses started to incur tangible costs, for example, time spent familiarising themselves with the requirements and investigating software options. Previous record-keeping was a factor in h

Plans to introduce a tax on multinational tech giants

Inchmead

Mar 22, 2021
1 min

Plans to introduce a tax on multinational tech giants

A multinational tax would capture IT giants like Amazon and Google, a move which would be welcomed by bricks and mortar retailers in the UK who have long criticised the current tax system, which fails to capture the global multinationals. There have been early talks with the US head of the Federal Bank Janet Yellen to discuss how a tax on multinationals could be rolled out. Rishi Sunak, the Chancellor, has said that the multinational tax will be a priority on the agenda for t

FCA starts criminal proceedings against NatWest

Inchmead

Mar 19, 2021
1 min

FCA starts criminal proceedings against NatWest

The Financial Conduct Authority (FCA) has today announced that it has commenced criminal proceedings against National Westminster Bank Plc (NatWest) in respect of offences under the Money Laundering Regulations 2007 (MLR 2007). The FCA alleges that NatWest failed to adhere to the requirements of regulations 8(1), 8(3) and 14(1) of MLR 2007 between 11 November 2011 and 19 October 2016. These regulations require the firm to determine, conduct and demonstrate risk sensitive due

Inchmead

Mar 17, 2021
2 min

HMRC loses high profile IR35 appeal case

The initial ruling by the FTT with regard to contracts with the BBC during the tax years 2015/16 and 2016/17, was that the IR35 rules did not apply to Atholl House Productions. This was despite the fact that there was mutuality of obligation between Atholl House Productions and the BBC, a requirement for personal service and a degree of control over the work, all of which are key pointers towards employment, as set out in case law. HMRC subsequently appealed against this dete

Inchmead

Mar 15, 2021
1 min

Super-deduction capital allowance

Chancellor Rishi Sunak said: ‘With the lowest corporation tax in the G7, we need to do even more to encourage businesses to invest – for decades we have lagged behind our international peers. We need to unlock cash reserves so today I can announce the super-deduction. For the next two years when companies invest, they can reduce their tax bill with super deduction by 130% of the cost. ‘We’ve never tried this before in our country – the Office for Budget Responsibility (OBR) s

One in five small business owners struggling with mental health issues

Inchmead

Mar 12, 2021
1 min

One in five small business owners struggling with mental health issues

The SME Tracker for March revealed that one in seven bosses (13.6%) were feeling unable to cope with work pressures, with another one in 13 (7.5%) reported having intrusive negative thoughts or suicidal feelings. Both figures were a substantial jump from the summer, when only one in 200 reported having suicidal or negative thoughts. Generally, 24% said their mental health was worsening, due to the stress and challenges of keeping their businesses afloat amid the global pandem

FRC calls for more transparency when reporting against Corporate Governance Code

Inchmead

Mar 11, 2021
2 min

FRC calls for more transparency when reporting against Corporate Governance Code

The Code sets high standards for corporate governance but the FRC recognises that companies have differing circumstances and so the Code offers flexibility through its ‘comply or explain’ approach to reporting. The FRC encourages companies to embrace the flexibility offered by the Code so that investors and wider stakeholders benefit from reporting that clearly demonstrates a commitment to good governance, and sets out a company’s circumstances. The FRC guidance stated: ‘Some

FCA confirms contactless payment threshold increase

Inchmead

Mar 8, 2021
1 min

FCA confirms contactless payment threshold increase

These changes will allow the industry to increase the limit for contactless payments at the point of sale to securely improve convenience for consumers and merchants. In the future we could see more consumers using contactless card payments for higher value transactions such as purchasing fuel and weekly groceries without needing to use Chip and PIN. Sheldon Mills, Executive Director, Consumers and Competition said: ‘During the pandemic, more people have been using contactle

HMRC offers further help with self-assessment tax bills

Inchmead

Mar 4, 2021
1 min

HMRC offers further help with self-assessment tax bills

HMRC announced that self-assessment taxpayers won’t be charged the automatic 5% late payment penalty if they pay what they owe for 2019/20 or set up a payment plan by 1 April 2021. Normally, a 5% late payment penalty is charged on any unpaid tax that is still outstanding on 3 March following the end of the tax year. But this year, because of the impact of the pandemic, HMRC is giving taxpayers more time to pay or set up a payment plan. Note that HMRC will stick to the normal

Capital allowances for 'green' cars is extended by HMRC

Inchmead

Mar 2, 2021
2 min

Capital allowances for 'green' cars is extended by HMRC

100% first year allowances are currently available on brand new cars where emissions do not exceed 50g/km. This 100% allowance is being extended to April 2021. From April 2021, the 100% first year allowance will only apply to zero emission cars. Currently, vehicles emitting between 50-110g/km are eligible for 18% writing down allowances, with so called “high emission” vehicles emitting over 110g/km only eligible for 6% writing down allowance. These rates will remain in plac

Archives

Subscribe Form