News and events from TaxCalc
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The key announcements in Chancellor Kwasi Kwarteng's Mini-Budget.
Press leaks, tax cuts, rumours, anticipation… All the hallmarks of a budget are present bar one – any requirement for the proposals to be scrutinised by the Office for Budgetary Responsibility. This is not, of course, unusual in recent times. The Coronavirus Job Retention Scheme, the energy bills package and the health and social care levy were all announced outside of the normal budgetary cycle. Yet, making major decisions without a full economic and fiscal forecast is seen by many as a gamble and perhaps a last roll of the dice by Prime Minister Truss to save the Conservatives at the next General Election.Read more
HMRC recently released the much-anticipated MTD for ITSA Notices, a document that TaxCalc has long been campaigning for and were promised early sight of six months ago – a promise that never quite came to fruition.
When first published back in July 2018, the clarity provided by the equivalent MTD for VAT Notice 700/22 was a welcome breath of fresh air, clarifying many outstanding points in relation to functional compatible software, digital links and the use of spreadsheets. It contained examples, diagrams and clear explanations of what was legislative, and hence came with the force of law, and what was HMRC guidance or recommendation.Read more
In 2015, then Chancellor of the Exchequer, George Osborne, announced the biggest change to the UK tax system since the introduction of Self Assessment, as he declared “the death of the annual tax return” accompanied by “a revolutionary simplification of tax”. Neither has yet to be delivered but, if you look past the headlines and rhetoric, HMRC’s Making Tax Digital programme is less about making tax digital and more about making bookkeeping digital.Read more
HM Revenue & Customs (HMRC) has confirmed that their new points-based penalty regime will come into effect from 1 January 2023 and will apply to both Making Tax Digital (MTD) for VAT as well as MTD for Income Tax Self Assessment (ITSA). Their stated aim is to make penalties simple, fair and effective but, as the arguably illustrious ageing rocker, Meat Loaf, might say, “Two Out of Three Ain’t Bad”.
The Chancellor of the Exchequer, Rishi Sunak, presents his Autumn Budget and Spending Review to Parliament today, Wednesday 27 October 2021 and the tax experts at TaxCalc are on hand to analyse and disseminate the finer details of any announcements. Keep checking back here for live updates and commentary.
The full MTD regulations have been made public for the first time today. Until now, we have only had an early draft of the regulations to work with and it is fair to say that there were some glaring holes in that draft document – particularly in relation to partnerships, basis periods and when taxpayers could enter or leave the MTD regime.
We have been waiting a long time for those draft regulations to be updated and our tax experts are now pouring over the contents to disseminate the fine detail.
HMRC has opened a consultation on basis period reform which asks for views on how best to implement a proposal to simplify the rules under which profits of an unincorporated trading business are allocated to tax years using basis periods.