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TAX NEWS

Tax news in brief

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Published: 29 Sep 2021 Update History

Highlights from the broader tax news week ending 29 September, which includes: HMRC figures confirm 20% of cases put though CEST are 'undetermined', date confirmed for the Scottish 2022/23 Budget and draft legislation published for the new residential property developer tax.

Fifth of CEST outcomes ‘undetermined’

In its latest quarterly update on the use of its CEST (Check Employment Status for Tax) service, HMRC has confirmed that in more than 20% of cases put through the tool it wasn’t able to determine whether the worker fell within the off-payroll working (OPW) rules. According to HMRC the tool has been used to try and identify whether the OPW working rules apply in more than 1.8m cases between 25 November 2019 and 31 August 2021. HMRC figures reveal that in cases were the worker was using an intermediary 49% were determined as outside OPW rules, 30% inside the rules and 21% of cases were undetermined. For those not using an intermediary 55% were self employed for tax reasons, 25% were employed and 20% were undetermined. Read more.

Date confirmed for Scottish Budget

The Scottish Finance Secretary, Kate Forbes, has confirmed that the devolved government’s 2022/23 Budget will be announced on 9 December 2021, alongside the publication of its medium-term financial strategy. The announcement also confirmed that the Budget would focus on delivery of the Scottish Parliament’s new programme for government dealing with the impacts of the coronavirus pandemic. Forbes took the opportunity to welcome the UK government’s decision to revert to an Autumn Budget. Read more.

Draft legislation for new residential property developer tax

HM Treasury is seeking feedback on draft legislation to enact the new residential property developer tax (RPDT). The new tax has been created to raise revenues to pay for the removal and remediation of unsafe cladding from high-rise buildings following the Grenfell Tower fire. The RPDT will apply to accounting periods starting on or after 1 April 2022 and will be charged on the profits of companies carrying out residential property development. The consultation period will close on 15 October 2021, and the final design of the tax will be confirmed in the Budget on 27 October. Find out more.

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