Media and politics

The football season may be suspended but the Low Incomes Tax Reform Group (LITRG) scored its own hat trick at the Tolley’s Taxation Awards 2020.

 

Guest blog by Tarlochan Lall, Barrister, CTA (Fellow), Monckton Chambers

• The conditions for eligibility appear to be more stringent in comparison to the job retention scheme.  The latest revisions expose anomalies in the provisions.
• The framework for SEISS and its structure cast doubts over what entitlement it gives.  HMRC’s message appears to be we’ll contact you, don’t contact us.
• The lack of a dispute resolution mechanism creates issues for operators and HMRC alike.
• HMRC’s guidance needs to be further refined as issues remain.

 

The government is to introduce a new micro-loan scheme for small businesses amid fears that many have been unable to access other government-backed Coronavirus loan schemes.

The Coronavirus ‘Bounce Back’ loan scheme was announced by chancellor Rishi Sunak in a statement to MPs in the House of Commons on Monday.

A report by a House of Lords committee has called on the government to address the ‘inherent flaws and unfairnesses’ in the IR35 regime and has recommended it reviews its entire approach to its plans to extend off-payroll working to the private sector from next year.

MPs on the Treasury Committee questioned a minister and two of the Treasury’s most senior civil servants in the latest session of its inquiry into the economic impact of coronavirus, held on Wednesday 29 April.

The Finance Bill had its second reading in the House of Commons on Monday 27 April.  The Bill includes measures such as a Digital Services Tax, changes to the controversial Loan Charge and retaining corporation tax at 19 per cent (rather than implementing a previously legislated cut to 17 per cent). It makes some business reliefs more generous to encourage investment but introduces restrictions on the availability of two capital gains tax reliefs - entrepreneurs’ relief and private residence relief.

The Treasury Select Committee held an evidence session on Tuesday 21 April on the economic impact of Coronavirus. Two evidence sessions were conducted over a two-hour period:

By Alan Powell, a member of the CIOT's Indirect Taxes Committee

After HM Customs and Excise's (HMCE) gentlemen’s agreement with the British wine industry in 1996 and some tumultuous events since, the curtain was quietly brought down earlier this month on the UK practice of dilution of wine or made-wine after the duty point (post duty point dilution – “PDPD”). 

Guest blog by Gemma Tetlow, chief economist at the Institute for Government

When Chancellor Rishi Sunak announced a generous package of support to help the self-employed weather the storm of coronavirus, he hinted there would eventually be a quid pro quo: higher taxes. This reform has long been needed – the self-employed have always paid lower taxes than employed people generating the same income but this tax advantage is no longer matched by lower entitlement to state benefits, as once it was. Philip Hammond tried and failed to implement a similar reform three years ago.

The UK is set to face a significant economic shock, regardless of how long the Coronavirus lockdown lasts, with higher taxes and the tax treatment of different forms of work likely to dominate post-outbreak discussions on how to rebuild the economy.