Wilson Wright Partner Blog

Category Archives:Adam Cramer

Companies lose Corporation Tax deductions case

A First Tier Tribunal has this week dismissed an appeal lodged by three companies who had sought to deduct Corporation Tax on contributions to Employee Benefit Trusts (EBTs). Read More

VAT rules need to be updated, Treasury advisor insists

The current VAT system is in sore need of reform, the Office of Tax Simplification (OTS) has argued. Read More

CIOT concerned about the implications of FRS crackdown

The Chartered Institute of Taxation (CIOT) fears that efforts to tackle businesses accused of misusing a VAT simplification scheme could cause harm to many entirely innocent firms. Read More

Lingering concern about firms unaware of MTD

One in five of the UK’s micro-businesses know nothing at all about the Government’s flagship Making Tax Digital (MTD) initiative. Read More

Chancellor’s Budget must be “unashamedly pro-business”

Some of the UK’s most influential business groups are urging the Chancellor to take steps to ease the burden on firms in his upcoming Budget speech.

Philip Hammond is due to step up to the despatch box on March 8th and is under pressure to implement a package which provides sufficient support to firms.

With less than a month to go until the fiscal statement is made, the Confederation of British Industry (CBI) and the Federation of Small Businesses (FSB) have published submissions setting out their priorities.

Rain Newton-Smith, chief economist at the CBI, said: “In a more challenging economic environment, the Government must be careful not to put further pressure on firms.”

The organisation has called for adjustments to business rates, efforts to build on the success of R&D tax credits and assurances about the implementation of the apprenticeship levy – which has caused consternation among some senior business leaders.

In the FSB’s submission, which has also been made public, national chairman Mike Cherry said: “Spring Budget 2017 is a critical moment for the Government to show it is unashamedly pro-business, and that the Chancellor recognises that small businesses are the engines of job creation.

“Spiralling labour costs are now threatening their growth ambitions and hiring intentions.”

CIOT responds to Making Tax Digital plans

The Chartered Institute of Taxation (CIOT) has welcomed the fact that HMRC has rowed back on some aspects of its flagship Making Tax Digital initiative, but has warned that the timetable for implementing the scheme is still “daunting.”

The organisation was responding after the tax authority set out further details for how the new regime will work in practice.

Following a consultation last year, officials have agreed that businesses will be allowed to continue to use spreadsheets for record keeping and confirmed that no penalties will be issued for late submissions in the first year of the initiative.

Despite the concessions, the institute remains convinced that HMRC should push back the start date for the new arrangements.

At present, pilots are intended to start in April and the scheme scheduled to begin in earnest next year.

Bill Dodwell, the CIOT’s president, said: “Businesses and tax professionals across the UK will be poring over today’s announcements to see what they mean for them and their clients and customers. The fact that there were more than 3,000 submissions to these consultations shows the level of concern about the proposals and the impact they will have.

“The promised software isn’t yet available for anyone to see its capabilities, or know how many providers of free software will actually deliver in the envisaged timeframe.  There is also no ability yet for agent access. All of these things make the case for delay even stronger.”

CIOT calls for ministers to improve the standard of tax-making policy

Officials at the Chartered Institute of Taxation (CIOT) have said that the Government should use its upcoming Budget as “a springboard” for a change in direction on tax.  Read More

UK will go on being a great place for business insists Chancellor

Chancellor Philip Hammond this week made clear that the Government would take decisive steps to ensure Britain remained attractive to global businesses, even if it was unable to achieve the trading relationship it wanted following Brexit negotiations. Read More

Britain’s largest businesses make sizeable contribution to tax receipts

New research has revealed that the UK’s biggest firms contributed more than £80billion in tax over the course of 12 months. Read More

Reporting requirements will put extra strain on businesses which are already tax-compliant

Concerns have been raised that additional reporting requirements relating to corporation tax may put an undue burden on many businesses.

Details of a number of new rules have been laid out in the Finance Bill 2017, with the Government arguing that the adjustments are designed to close loopholes and crack down on tax avoidance.

There will be a particular emphasis on scrutinising businesses which have set up tax structures offshore.

Any organisation which fails to comply with the new requirements will face civil sanctions and potentially penalties such as public naming.

Jane Ellison, the Financial Secretary to the Treasury, said: “We are recognised as having one of the world’s most effective tax regimes and this government is acting to ensure it continues to provide certainty for businesses, fairness for workers and a sound tax base.”

But many commentators are concerned that in attempting to crack down on businesses which may be attempting to cheat the system, ministers are also placing an additional administrative burden on the vast majority of firms which already comply with all the relevant tax laws.

A consultation on the new requirements will run until February 1st 2017, with the final details to be confirmed in next year’s Budget.


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