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TaxationWeb’s Lee Sharpe looks at a tenet, long-cherished by some, that lowering taxes – or lower tax rates – result in higher overall tax receipts. Introduction Advocates for a “low-tax regime” have often justified their position with the argument that lower tax rates encourage enterprise and thereby profits and, ultimately, higher tax receipts – “Laffer-lite”, if you will; laugh-out-loud, if you dare - some people take this proposition very ... Continue Reading

TaxationWeb's Lee Sharpe dismantles the former Chancellor's claims to save NICs for workers and warns that much of any claimed saving will soon evaporate in the years to come.   Introduction The former Chancellor's 2022 Spring Statement on 23 March 2022 included the following claim:   "Our current plan is to increase the NICs threshold this year by £300. I’m not going to do that. I’m going to increase it by the full £3,000. Delivering our promise ... Continue Reading

TaxationWeb’s Lee Sharpe offers some guidance for general employees and director-shareholders hoping to get the best out of motor mileage claims. Introduction This article will take a look at the standard mileage claim for motoring expenses, and outline which is better, for: Standard employees – where the employee is concerned only with his or her own personal financial position; and Director and shareholder of own company – who will be concerned about overall tax-efficiency, ... Continue Reading

TaxationWeb’s Lee Sharpe has concerns about HMRC’s guidance on mileage claims and whether or not they already provide for finance costs. Introduction This article has been written in vexed response to HMRC’s woefully scant advice regarding motoring expenses, and in particular whether or not interest or finance costs for the vehicle may be claimed alongside. HMRC seems to have tried quite hard to convince people that its approved mileage rates already include an adjustment for ... Continue Reading

TaxationWeb’s Lee Sharpe warns that the rising cost of motoring versus outdated tax reliefs are leaving many employees out of pocket, and out of options - which is pretty much how HMRC wants it. Introduction This article will consider the evolution of the tax regime for employees who use their own private vehicles (primarily cars) for business purposes – particularly in light of rapidly rising costs as fuel, parts and manufacturing expenses reach unprecedented heights. And it will consider ... Continue Reading

TaxationWeb’s Lee Sharpe has some points, calculations and guidance on the 2022 Spring Statement. Introduction The Chancellor made his 2022 Spring Statement Speech on Wednesday 23 March. On the whole, it does not appear to have gone down that well. From a tax (NICs) perspective, one might observe that the Chancellor has shown the mark of a true amateur by returning to the scene of his last crime – not once, not twice, but thrice at least. I suspect that professionals and public ... Continue Reading

Danny Baker, of Bradley Chilvers & Co., champions the cause of company pension contributions as part of a tax-efficient remuneration policy. Introduction There are three essential methods to extract profits from a limited company on a recurring basis, being salary, dividends and pension contributions. Do we overlook the pension approach? Advice has continually been to take low salary and dividends, but with the current dividend regime, should we be evaluating that stance? Over the past 5 or ... Continue Reading

Peter Vaines covers a range of topics in his monthly tax case update and highlights a case where HMRC was criticised by the tribunal for asserting the taxpayer had no right of appeal. Remittances and Collateral HMRC have changed their guidance regarding their view of the rules relating to remittances where foreign income and gains are used as collateral for loans. (Whether their views relating to the existence of collateral are correct is a matter yet to be tested.) Previously, HMRC had treated ... Continue Reading

Peter Vaines reviews a basket of important tax cases covering IR35 / the Intermediaries regime and particularly mutuality of obligations and substitution; share for share transactions and the tax avoidance motive; limits on HMRC's Sch 36 Information notice powers, and was the Presumption of Continuity misapplied? IR35 – Personal Service Companies We have yet another decision on IR35 on the intermediaries legislation – this one from the Upper Tribunal: Northern Lights Solutions Ltd v ... Continue Reading

In his latest bulletin extract, Peter Vaines considers the findings of Tooth in the Supreme Court, the validity of Schedule 36 Information Notices and whether a partnership is eligible for Business Asset Disposal Relief on pre-trading activity alone. Discovery Assessments: Staleness Barely a month goes by without some reference to discovery assessments such is the complexity of the subject. Last month I mentioned one aspect which is particular hot – whether a discovery can become “stale” ... Continue Reading