Indirect Taxes

 


This was a fairly quiet conference on the tax front for the Conservatives, new announcements limited to a stamp duty increase for foreign buyers, edging a little closer to a Digital Services Tax, tweaks to the apprenticeship levy and another year of a fuel duty freeze. Various outriders would like to see more radical changes though – especially corporation tax cuts – and there are hints these might be considered depending on the outcome of the Brexit process.

The Chartered Institute of Taxation held a roundtable on Customs and Brexit, in Parliament, earlier this month. Glyn Fullelove, Deputy President, Chartered Institute of Taxation (CIOT), chaired the meeting and the parliamentary sponsor of the event was Kirsty Blackman MP.

The CIOT comments sent to HMRC on Draft legislation: VAT reverse charge for construction services.

MPs have approved the Trade Bill - the companion bill to the Taxation (Cross Border Trade) Bill – which covers non-tariff barriers in relation to ‘transitioning’ the EU’s trade agreements to UK agreements.

Two new clauses and 50 amendments were passed to the Taxation (Cross Border Trade) Bill (also known as the customs bill) at its report stage this week (Monday 16 July). The most significant of these were amendments tabled by the European Research Group (ERG) of ‘Brexiteer’ Conservative backbenchers designed for the most part to prevent the government agreeing too close a relationship with the EU. These were accepted by the government, though two were opposed by the opposition and some Conservative MPs, and passed by just three votes in each case.

The CIOT comments on the Charity Tax Commission call for evidence Review of Charitable Tax Reliefs.

The Treasury Committee has held its first evidence session as part of its inquiry into VAT as part of its wider work on Securing the Tax Base. Discussion covered VAT after Brexit, regulation of online marketplaces such as Amazon, the Uber business model, VAT planning by NHS trusts, the scale of the tax gap, Making Tax Digital and VAT, tackling VAT errors, VAT support for small businesses and VAT boundary issues.

The CIOT comments on the HMRC consultation Alternative method of VAT collection – split payment.

The CIOT response the Treasury Committee VAT Inquiry. 

The CIOT response to the HMRC call for evidence on VAT registration threshold.