Author Archives

Andrew Goodall

Making tax digital, HMRC guidance and the tax gap

A key aim of the Making Tax Digital service is to ‘close the tax gap due to errors with people making their VAT returns’, according to HMRC. An alternative – and perhaps better – way to deploy technology to improve compliance is set out in an Office of Tax Simplification report. Better HMRC guidance, the OTS says, is likely to lead to more accurate tax reporting and ‘help to close the tax gap, as taxpayers should have a better understanding of HMRC’s view of the law’. Read more:

My article for Accounting and Business January 2019, published (free to view) by ACCA.

Finance bill, VAT threshold and Brexit

Tax Notes published (paywall) the following articles in the week of December 24:

VAT Issues Need to Be Addressed in Brexit Talks, MPs Say
A significant reduction in the VAT registration threshold may be imposed on U.K. businesses if a new EU VAT directive takes effect during the proposed Brexit transitional period, a House of Commons committee said.

MPs Seek Finance Bill Change to Steer Brexit Debate
As the U.K. government ramps up preparations for a no-deal Brexit, members of Parliament hope to use a finance bill amendment to force the government to seek Parliament’s consent to such an outcome.

Digital services tax, business rates, employment status and Brexit

Tax Notes published (paywall) the following articles in the week of December 17:

U.K. DST Not Intended to Resolve Business Rates Issue
There is no formal link between a digital services tax and reductions in business rates, members of Parliament were told two days after they asked Amazon UK to disclose its U.K. sales and tax liabilities.

U.K. Business Groups Urge MPs to Prevent Disorderly Brexit
There is not enough time to prevent “severe dislocation and disruption” in a no-deal Brexit, five U.K. business groups said as they urged members of Parliament to prevent a disorderly exit March 29, 2019.

U.K. Steps Up No-Deal Brexit Plans Amid Anger Over Vote Delay
Cabinet ministers decided to step up preparations for a no-deal Brexit, as U.K. Prime Minister Theresa May’s critics denounced her decision to defer a vote on the EU withdrawal agreement until mid-January.

U.K. Tax and Employment Rights Plan Draws Lukewarm Response
Aligning the existing employment status frameworks for tax and employment rights purposes will be difficult if the government continues to rule out changes to national insurance contributions, U.K. tax professionals said.

Juncker Seeks to Lower Temperature After Fraught Brexit Talks
U.K. Prime Minister Theresa May maintained that she is still seeking “further assurances” about the proposed Northern Ireland backstop, after EU-27 leaders reiterated that the Brexit deal is “not open for renegotiation.”

Theresa May survives Conservative party confidence vote

Prime Minister Theresa May survived an attempted coup by Eurosceptic Conservatives, winning a vote of confidence in her leadership of the Conservative Party amid widespread frustration over the Brexit process.

Conservative members of Parliament voted 200-117 in May’s favour. The secret ballot on December 12 was triggered after Eurosceptic MPs secured the 48 signatures required for a vote. My news story for Tax Notes (paywall), December 13:

Theresa May Survives Conservative Party Confidence Vote

Scottish higher rate threshold frozen amid ‘tax gap’ concerns

The Scottish government’s tax policies will continue to focus on fairness and investment in public services, Derek Mackay, cabinet secretary for finance, economy and fair work, said as he delivered his budget.

But Mackay ignored the pleas of business groups who had expressed concerns over a “growing tax gap” between Scotland and the rest of the United Kingdom, according to Murdo Fraser, Conservative member of the Scottish Parliament and shadow finance secretary. My news story for Tax Notes (paywall), December 13:

Scottish Higher Rate Threshold Frozen Amid ‘Tax Gap’ Concerns

HMRC discretion is key to resolving loan charge dispute, MPs told

HM Revenue & Customs could use its “care and management” powers to reach a compromise with taxpayers facing the 2019 loan charge and avoid resorting to bankruptcy proceedings, a tax expert told members of Parliament.

“My personal viewpoint is that HMRC does have discretion to enter into a settlement arrangement with these individuals,” Chartered Institute of Taxation President Ray McCann told the House of Commons Treasury Subcommittee on December 10, in response to questions about the retroactive charge. My news story for Tax Notes (paywall), December 11, also published in the December 17 edition of Tax Notes International:

HMRC Discretion Is Key to Resolving Loan Charge Dispute, MPs Told