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The latest news about the UK's tax system, policy changes and legislative updates brought to you by ICAEW's Tax Faculty.
Governments around the world have announced tax measures to support businesses and individuals in response to the COVID-19 pandemic. This page brings together guidance and news from ICAEW, as well as externally-produced resources that provide practical information on emerging tax issues.
ICAEW’s Tax Faculty works to support its members and financial professionals on the latest developments in tax policy and practice. Here you can see list of the faculty’s latest activities, publications and webinars.
TAXbites provide a brief reminder of the basics on popular topics. Each recording lasts around 10 minutes and is freely available for all to view
HMRC has revised its policy on meaning of ‘entire interest’ for the purposes of the construction self-supply charge following the Supreme Court’s judgement in the Balhousie Holdings case.
Highlights from the broader tax news week ending 13 October, which includes: new HMRC guidance on joint and several liability notices and on avoiding non-compliant umbrella companies. HMRC extends access for employer client data, is to cease benefit payments to post office accounts and confirms that DIY housebuilders can reclaim VAT on blinds and shutters.
The forms required for businesses to operate special customs procedures within a designated freeport have been published, along with further guidance on procedures for declaring goods moving into and out of sites.
The OECD’s two-pillar approach to tackling the taxation of large multinationals has gained further traction with new signatories, as further details are revealed. ICAEW’s Tax Faculty explains the key changes from those unveiled in July.
In this issue, Anita Monteith considers how the government might bring forward tax payment dates, Neil Warren considers the VAT treatment of a range of business expenses and staff perks and Dean Needham explains how the timing of investment expenditure can affect the level of tax relief available.
In this issue Rebecca Benneyworth examines growing complexity in the tax system, Marc Levitt provides an update on family investment companies and Karen Eckstein outlines risks and opportunities when buying or selling a professional services firm.
In this issue, Steve Wade explains why there are difficult decisions ahead on the route to a straightforward tax system, Stephen Yates reviews a new income tax annual published by Claritax Books and Mark McLaughlin looks at the cautionary tale of Mr Khan, where a company purchase of own shares had unexpected and expensive tax consequences.
In this issue, Kate Upcraft shares her advice for the remaining few months of the Coronavirus Job Retention Scheme, Andy Tall examines the changes to the penalty regime for late VAT and ITSA returns and Jonathan Schwarz reviews Automatic Exchange of Information Handbook by John Hiddleston.
Off-payroll working: guidance on clients’ off-payroll working obligations when a contractor works through an intermediary such as a personal service company across borders and/or some of the parties (client, contractor, contractor’s personal service company) are non-UK resident and/or the work is not wholly carried out in the UK, how the ‘host employer’ rules in s689 ITEPA 2003 interact, and the impact of double tax treaties.
Questions and HMRC’s answers on how to determine whether a trust that uses the services of a contractor provided through an intermediary such as a personal service company is ‘small’ or has a UK connection under the off-payroll working rules.
Off-payroll working: how to determine the size of a private sector client that uses the services of a contractor provided through an intermediary such as a personal service company.
Finance Act 2021 introduces a new loss relief allowing trading losses incurred in 2020/21 and 2021/22 to be carried back for relief against trading profits in the preceding three tax years. In this TAXguide Rebecca Benneyworth explains the measure in detail and examines some of the complexities that arise when considering the practical implications of the loss carry back.
Webinars, videos and podcasts
This webinar from the Tax Faculty will cover the regulations in detail and explain where we are with the development of the policy and the pilot and what taxpayers and agents can do to prepare.
In this year's Hardman Lecture, former ICAEW President Paul Aplin will explore the opportunities and threats technology presents to the tax profession: what familiar tasks will disappear or change?
The Tax Faculty's essential Autumn Budget 2021 webinar
Are you prepared for the future of patent box relief? Find out about the changes for claims made from 1 July 2021.
A response dated 13 October 2021 to a consultation published by HMT on 20 September 2021.
A response dated 5 October 2021 to a consultation published by HMT on 30 September 2021, including ICAEW’s Tax Faculty customary pre-Budget letter to the Financial Secretary to the Treasury. It calls for the acceleration of work to build a modern tax system, while urging a “manageable pace” of transition, it cautions against implementing tax changes without consultation, such as the new Health and Social Care Levy.
Draft legislation and guidance implementing the government’s plans for large businesses to report uncertain tax positions will introduce additional complexity and not provide the clarity taxpayers need, ICAEW warns in its response to HMRC's consultation.
The future of tax
As digital technologies transform the worlds of work and leisure, the UK government grapples with balancing the books while ensuring its tax system is fit for purpose. As HMRC launches its review of the system that underpins the tax system, we take a look at the pressing issues and challenges.
The government has moved swiftly to consult on draft legislation to reform basis period rules before MTD ITSA becomes mandatory. ICAEW is concerned that changes will be rushed through and disappointed that the normal consultation process is not being followed.
ICAEW welcomes HMRC’s vision of a more flexible and responsive tax system outlined in the Tax Administration Framework Review but warns that significant challenges, such as creating a single identifier for taxpayers and consolidation of tax systems, can only be met if HMRC is properly resourced.
A single identifier for individuals and smoother registration processes are pre-requisites for a better tax system, argues ICAEW. HMRC also needs funding to develop an improved process for registering, authenticating and authorising agents.
ICAEW considers HMRC’s call for evidence on timely payment to be premature, as earlier payment of income and corporation tax would reduce businesses’ flexibility to manage their cashflow.