The marriage allowance and why becoming a higher rate taxpayer could become ‘very expensive’

When I was one of those people who thought Labour might win last year’s general election I suggested that the new income tax ”marriage allowance” might be short-lived. “We think it is a dud of a policy,” Labour’s shadow Treasury minister had said. The government said more than four million married couples and 15,000 civil … Continue reading The marriage allowance and why becoming a higher rate taxpayer could become ‘very expensive’

Why do we have tax relief for losses?

Our tax code provides relief for losses so that the profits earned over the lifetime of a business are taxed once and only once. For example, a business has made trading profits of £550,000 and losses of £200,000 over five years, and has no other income. Its net profits are £350,000 and tax is paid … Continue reading Why do we have tax relief for losses?

UK tax policy and the corporate tax base: a public consultation

I think we can probably expect the Treasury committee's inquiry into UK tax policy and the corporate tax base to be more informative and fruitful than the public accounts committee's inquiry into "corporate tax deals". The Treasury committee has invited submissions by 31 March. In the meantime here is the transcript of the Treasury committee's … Continue reading UK tax policy and the corporate tax base: a public consultation

Childcare support – an update

This note on the importance of clear guidance on the interaction between tax-free childcare and other means of support is extracted from my recent update for Tax Adviser: “The new childcare support landscape will be complex and we have stressed the importance of providing users with guidance that not only explains the rules of each scheme … Continue reading Childcare support – an update

Taxing multinationals: BEPS outputs and the ‘digital economy’

“We aim to solve this problem in the next two years,” OECD tax director Pascal Saint-Amans said in 2013, a month before presenting to G20 ministers an action plan to tackle  “base erosion and profit shifting” (BEPS). Very little has been said in mainstream media about the impact of the BEPS project’s “final reports”, published last … Continue reading Taxing multinationals: BEPS outputs and the ‘digital economy’