united kingdom


UK To Require Digital VAT Filing

Posted on January 14th, by Global Tax Weekly in Sales Tax. No Comments

In the UK, HM Revenue and Customs has called on UK VAT-registered businesses to sign up for Making Tax Digital (MTD) for VAT before April 1, 2022.

Since April 2019, businesses with a taxable turnover above GBP85,000 have already been required to follow Making Tax Digital, including keeping digital records and filing VAT returns using MTD-compatible software.

All VAT-registered businesses, including those who have voluntarily registered, must follow MTD rules from April 2022.

For more information on this, and other topical international tax matters, please visit: https://www.cchgroup.com/roles/corporations/international-solutions/research/global-tax-weekly-a-closer-look


UK Warns Against Scams

Posted on November 30th, by Global Tax Weekly in Compliance. No Comments

The UK’s HM Revenue & Customs has urged self-assessment taxpayers to be wary of falling foul of scams as the filing deadline approaches.

In a November 16 statement, HMRC warned that such scams were on the rise, with nearly 800,000 reported in the last year, as fraudsters use Self Assessment season to try and steal money or personal information from unsuspecting individuals, ahead of the January 31, 2022, deadline.

For more information on this, and other topical international tax matters, please visit: https://www.cchgroup.com/roles/corporations/international-solutions/research/global-tax-weekly-a-closer-look


UK Launches Digital Platforms Consultation

Posted on August 6th, by Global Tax Weekly in Base Erosion and Profit Shifting (BEPS). No Comments

In the UK, the tax authorities have been trying to get a handle on the taxation of the so-called “gig economy”, with HMRC having launched a new consultation on the implementation of the Organisation for Economic Co-operation and Development (OECD) Model Reporting Rules for Digital Platforms, which will require digital platforms to newly report a wide array of transaction data relevant for tax purposes.

The Model Rules for Reporting by Platform Operators with respect to Sellers in the Sharing and Gig Economy (MRDP) would require digital platforms to collect information on the income realized by those offering accommodation, transport, and personal services through platforms and to report that information to tax authorities. The platforms will also be required to provide a copy of the information to the seller, which will help the seller declare the correct amounts for tax purposes.

Countries are … Read More »


UK Announces Tax Changes

Posted on March 11th, by Global Tax Weekly in Budgets. No Comments

Following the UK’s exit from the European Union earlier this year, and with the economy in the COVID doldrums, the UK Chancellor, Rishi Sunak, made a number of attention-grabbing announcements in his March 3 speech, including a hike to the headline corporate tax rate, new value-added tax and property tax relief measures for businesses, and the creation of a number of new freeports.

The Chancellor revealed that the corporate tax rate will be hiked to 25 percent from April 2023. Businesses with profits of GBP50,000 (USD69,800) or less will continue to benefit from the 19 percent rate, while a tapered rate will be introduced for profits above this ceiling such that only businesses with profits of GBP250,000 or more will be fully subject to the new 25 percent rate.

The Government has also announced that the rate of VAT for the tourism and hospitality … Read More »


EU Reports On Brexit Impact

Posted on February 19th, by Global Tax Weekly in Trade. No Comments

The EU has been mulling over the anticipated economic impact of the Brexit split. Releasing its Winter 2021 Economic Forecast, the EU suggested that Brexit will dent UK economic growth considerably, more than for the European Union, despite the new free trade deal between the two parties.

The free trade deal between the UK and the EU provides for zero tariffs and zero quotas on all goods trade that complies with the appropriate rules of origin. However, the report highlights that non-tariff barriers have increased substantially for both imports and exports from and to the UK.

“…[W]hile the FTA improves the situation as compared to an outcome with no trade agreement between the EU and the UK, it cannot come close to matching the benefits of the trading relations provided by EU membership,” the report observed.

It estimated that, for the EU, on … Read More »


UK VAT Report Begins

Posted on December 23rd, by Global Tax Weekly in Sales Tax. No Comments

The UK authorities have launched a consultation on VAT as it relates to the sharing economy in the UK.

In a new call for evidence on the need for reform of the UK’s VAT rules, the Government noted that the sharing economy (covering services such as ride-sharing and temporary accommodation) creates huge opportunities for the UK economy but also potentially presents certain challenges to the VAT tax base.

Specifically, the call for evidence noted the potential for long-term erosion of the VAT base due to consumers shifting their consumption to the sharing economy. Without reform, this erosion will take place, for instance, because individual suppliers are typically not required to charge and remit VAT because their turnover falls under the VAT registration threshold, the paper said. In addition, as they are not required to register for VAT, their payments of commission fees … Read More »


UK Clarifies VAT Rules

Posted on October 9th, by Global Tax Weekly in Sales Tax. No Comments

In the UK, while things are gearing up to get more complicated on pretty much all fronts, the tax authority sought to provide clarity certain aspects of the VAT rules, including with regard to the new reverse charge regime for the building and construction industry, now set to come into force in March 2021. (Originally due to be in place from October 2019, the measure had been postponed to October 2020. But now here we are, so…)

HM Revenue and Customs released three publications offering in-depth guidance on the introduction of the VAT reverse charge mechanism on the supply of building or construction services.

Under the new regime, in order to remove the possibility of “missing trader” fraud, a VAT-registered business which supplies certain construction services to another VAT-registered business for onward sale will be not be required to account for VAT, … Read More »


UK Tackles Tax Avoidance Schemes

Posted on July 31st, by Global Tax Weekly in Tax Avoidance. No Comments

In the UK, new proposals were recently released designed to address the promotion and enabling of tax avoidance schemes.

The Government unveiled a number of planned legislative changes to existing anti-avoidance regimes to strengthen HMRC powers to further clamp down on the market for tax avoidance.

These included changes under the Disclosure of Tax Avoidance Schemes (DOTAS) regime to ensure that the UK tax authority can act quickly and decisively where promoters fail to provide information on their avoidance schemes and clients.

Changes have also been proposed to enable HMRC to more effectively issue “stop notices” to promoters under Promoters of Tax Avoidance Scheme (POTAS) rules, to make it harder to promote schemes that do not work, and to prevent promoters from abusing corporate entity structures to avoid their obligations these rules.

The proposed legislative amendments would also ensure that HMRC can obtain information … Read More »


European Countries Propose Digital Tax Compromise

Posted on July 10th, by Global Tax Weekly in E-commerce. No Comments

The finance ministers of France, Italy, Spain, and the United Kingdom have reportedly sent a letter to the US Treasury Secretary, Steven Mnuchin, proposing that new international tax rules for digital companies could be gradually phased in.

The ministers suggest in the letter, seen by Bloomberg News, that tax rules for providers of digital services could initially be restricted to those companies providing “automated” digital services and later could be applied more widely.

By offering such a compromise, the European countries are hoping to persuade the US to re-join negotiations towards the creation of an internationally-agreed framework of tax rules for digital companies. They reportedly suggested that an agreement that includes the US could be reached by the end of 2020 if a phased approach to the introduction of these rules was on the table.

For more information on this, and other topical … Read More »


UK Announces Budget

Posted on March 19th, by Global Tax Weekly in Budgets. No Comments

The new UK Chancellor, Rishi Sunak, revealed his maiden budget on March 11. In it, Sunak pledged to waive business rates on small retailers, to introduce a new tax on plastics, and to remove value-added tax on electronic publications.

The Chancellor announced that any eligible retail, leisure, or hospitality business with a rateable value below GBP51,000 (USD65,670) would, over the coming financial year, pay no business rates, the UK’s commercial property tax. Further, he revealed that the government will provide support for businesses struggling with paying their tax dues, by “scaling up” the Time to Pay service.

It also emerged in the budget that the UK Government had decided to reduce the lifetime limit for Entrepreneurs’ Relief to GBP1m (USD1.25m) from GBP10m, affecting qualifying disposals on or after March 11, 2020. Entrepreneurs’ Relief reduces the amount of capital gains tax paid on … Read More »





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