VAT (Amendment) Regulations 2017: Flat Rate Scheme - CIOT comments

6 Jul 2017

While we think that the legislation will, largely, achieve its policy objectives (albeit that the drafting is complex and difficult to follow in places) we are concerned that the formula in new section 402D(1), ITEPA 2003 may result in an anomaly where a terminal bonus is received at the same time as a PILON is made. We are also concerned about the interaction of the new FSR on termination awards and the rules normally applied to attribute general earnings between UK and non-UK duties. We think some clarification is required to ensure that there is no mis-match arising from application of the different sets of rules.

Technical Team