Media and politics

A live blog of the first public bill committee sitting of Finance Bill 2020 (also known as Finance Bill 2019-21), which took place on Thursday 4 June 2020 at 11.30am. Topics covered included income tax and corporation tax rates, and tax treatment of social security benefits. MPs approved clauses 1-12 of the Bill.

MPs passed a resolution on Tuesday (19) allowing Finance Bill 2020 to be amended to introduce changes requiring large and medium private sector entities to assess the IR35 employment status of contractors and, where the rules apply, deduct income tax at source.

The Scottish Government has introduced legislation to the Scottish Parliament that will extend the period for eligible property buyers to claim a refund of the Additional Dwelling Supplement (ADS) of Land and Buildings Transaction Tax (LBTT).

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: