Tag: small business

HM Treasury defends loan charge amid sustained criticism

HM Revenue & Customs is committed to supporting taxpayers affected by the imminent loan charge, but does not accept claims made in some of the testimonies shared by members of Parliament, according to HM Treasury …

The government’s approach has attracted fierce criticism from a cross-party group of MPs, as well as the House of Lords Economic Affairs Committee. Tax barrister Keith Gordon of Temple Tax Chambers called last October for the loan charge to be repealed, arguing that HMRC was using the charge as a way to cover up its own failure to take action “over the last 15 years.”

My news story for Tax Notes (paywall), March 27: U.K. Treasury Defends Loan Charge Amid Sustained Criticism

UK government defies calls to restrict imminent loan charge

Thousands of people pay tax as self-employed workers or through their company without using “highly contrived tax avoidance schemes,” a minister told peers who urged the government to limit the April 2019 loan charge. The finance bill completed its second reading and remaining stages in the House of Lords after a short debate on February 8.

Labour peer Denis Tunnicliffe welcomed the government’s decision to accept a new clause calling for a forthcoming review of extended time limits for offshore income to include a comparison of those time limits with others, including those in the controversial loan charge provisions of Finance (No. 2) Act 2017. Continue reading “UK government defies calls to restrict imminent loan charge”

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

Taxpayers invited to contribute to small business tax review

The Office of Tax Simplification wants to know about the everyday experience of smaller businesses, including the self-employed, and especially those who “struggle with tax”.

In a consultation that closes on December 7, the OTS invites responses to an online survey as well as a more detailed call for evidence. “The inherent complexity and challenges faced by smaller businesses in their everyday affairs means that some find tax and other regulatory requirements difficult to manage,” it said.

The OTS wants to hear from businesses and their advisers about which parts of the system are most complex and “hard to get right”, and invites suggestions for improvement.

HMRC powers and the 2019 loan charge

A tax barrister told a House of Lords committee that the finance bill to be published on November 7 should be used to repeal a controversial tax charge on disguised remuneration.

The legislation “goes for the person who is least able to defend himself or herself, [and is] attacking the worker, not anyone else in the chain”, Keith Gordon of Temple Tax Chambers told the Economic Affairs Finance Bill Subcommittee on October 17.

“I find it extremely worrying that the legislation has been able to get on to the statute book,” he said.

The government has defended the charge and said HMRC “will only go to the employee to settle their income tax liability in cases where it cannot reasonably be collected from the employer – for example, where the employer is no longer in existence”.

My news story for Tax Notes (paywall), published on October 19, is now reproduced in full with permission:

UK tax barrister calls for repeal of controversial loan charge

As I reported on October 29 (paywall) Mel Stride, financial secretary to the Treasury, has declined to appear before the subcommittee, which is examining the loan charge as part of its review of HMRC powers.