M Levin & Co

Media Tax Highlights for Friday 8 December 2023

Tax administration

HMRC helpline restricted as tax return deadline approaches -
- HMRC to turn away callers amid struggles to cut waiting times (Daily Telegraph – Charlotte Gifford)
- HMRC to restrict helpline access in run-up to tax filing deadline (Financial Times – Emma Agyemang)
- Now HMRC axes self assessment tax helpline for most callers (Daily Mail – Rachel Rickard Straus)
- Restrictions to HMRC’s helplines raise concerns (AccountingWEB – Amy Chin)
- Self Assessment helpline to focus on priority queries (HMRC announcement)
- Reducing access to taxpayer helpline is misguided (Chartered Institute of Taxation)
- HMRC’s digital shift needs taxpayer buy-in (Low Incomes Tax Reform Group)

HMRC limiting telephone support in the run up to Self-Assessment deadline (Association of Taxation Technicians)

HMRC’s Self-Assessment helpline will be restricted in the build-up to the tax return deadline, with only “priority” taxpayers and the “digitally excluded” able to speak to an adviser over the phone from December 11 to January 31. The news received widespread coverage in mainstream media outlets, with the Daily Telegraph and Financial Times quoting the Chartered Institute of Taxation and the Low Incomes Tax Reform Group.

John Barnett, Chair of CIOT’s Technical Policy and Oversight Committee, called the decision “misguided” adding: “While we understand HMRC's desire to prioritise where it puts its limited resources, we are concerned that in practice many of their customers [sic. What's wrong with "taxpayers"?] will be unable to navigate HMRC's digital services, and will simply give up.” Victoria Todd, head of LITRG, who was also quoted in the Daily Mail, added: “Forcing taxpayers to use services that are not up to scratch risks an erosion of trust in the tax system, leading to errors, non-compliance and more problems for taxpayers and HMRC further down the line.”

AccountingWEB also covered the story, including a quote from Senga Prior, chair of the Association of Taxation Technicians (ATT) technical steering group, who said: “There is a greater push to taxpayers self-serving from digital resources, and fewer ways for them to speak to an actual person at HMRC about their tax queries. Not only will some people be left behind in that journey, but the services available to taxpayers and professional advisers via digital channels are too often incomplete, disjointed and poorly designed even for those who can go digital.”

International tax

Hodge calls for public registers to tackle "dirty money" -
The Guardian (Rob Davies)

Reforms must be made to public registers of who owns companies based in offshore havens to prevent “dirty money”, say campaigners and senior MPs. Dame Margaret Hodge MP says it is a "matter of national security" to eliminate the secrecy offered by the overseas territories and crown dependencies. She urged the Government to issue an "order in council" to compel the overseas territories to comply and suggested that crown dependencies could be forced to follow suit.

Britons look to America to escape high taxes -
Daily Telegraph (Gareth Corfield)

Growing numbers of wealthy Brits are preparing to move to America to escape high taxes, according to the Daily Telegraph. Tax-friendly states including Florida, Alaska, Wyoming, and Texas are popular, but those emigrating must consider local taxes and other factors such as health insurance before making the move.

HMRC and CONNECT (Posting from the Daily Express 07.12.23)
They have been a few years late in publicising this. I spoke about this on LBC several years ago

Media Tax Highlights for Thursday 7 December 2023

Self employment

Jeremy Hunt urged to simplify self-employed tax rules - Birmingham Mail (James Rodger)

The Chancellor has been told to make tax rules for the self-employed easier to follow, as data suggests around a quarter of workers are considering becoming self-employed. A survey by recruitment services firm Workwell and the Association of Independent Professionals and the Self-Employed (IPSE) found almost one-fifth of people planned to do so within one year. "Contracting and freelancing remains an attractive option for substantial numbers of employees with around one in four considering giving up the security of working for someone else," said Chris Mollan, head of accountancy services at Workwell.

What is the Elective Deduction Model (EDM)? -
Contractor UK (Roger Sinclair)

Writing in Contractor UK, Roger Sinclair, legal consultant at egos, explained what a Elective Deduction Model is. He used a description from the Low Incomes Tax Reform Group, which said the EDM, “exploits the fact that employment law and tax law are different,” adding: “Self-employed people do not have the rights and protections that ‘workers’ have under employment law (remember agency workers are usually ‘workers’ and are very unlikely to be genuinely self-employed for employment law purposes). Putting workers in these 'EDM' arrangements saves the employment intermediaries concerned money. However, [EDM] is unlikely to benefit you in any way at all (in particular your key rights like minimum wage, holiday pay and auto enrolment are bypassed).”


HMRC

HMRC supercomputer makes hiding income ever more difficult - Daily Express (Harvey Jones) [NB They have been a few years late in publicising this. I spoke about this on LBC several years ago]

HMRC uses a supercomputer to track down a “staggering amount” of information on taxpayers and ensure they are not hiding income, reports the Daily Express. The device, called HMRC Connect, holds 55 billion items of data on taxpayers, and is growing, while also using A.I. [Artificial Intelligence] to make the systems more effective. It can use social media and online selling sites to detect income, with chartered accountancy firm THP saying: “It takes Big Brother surveillance to a completely new level.”
[NB They have been a few years late in publicising this. I spoke about this on LBC several years ago]

International

Tax revenue falls in OECD countries - OECD

Tax revenue in as a proportion of GDP fell in OECD countries in 2022. The average tax-to-GDP ratio decreased by 0.15 percentage points to 34.0% last year, mainly driven by a decrease in excise taxes and VAT revenue. However, it was partially offset by growth in corporate income taxes.

Saudi Arabia offers tax incentives for foreign firms -
Saudi Arabia offers tax breaks for companies moving regional HQs to Riyadh (Reuters)
- Saudi Arabia announces tax incentives to multinational companies (Saudi Gazette)

Saudi Arabia will offer tax incentives for foreign companies that set up their regional headquarters in the kingdom. Incentives include a 30-year exemption from corporate income tax and a zero percent income tax rate for the regional entity, with 200 foreign companies already attracted.

Media Tax Highlights for Wednesday 6 December 2023

Scotland

Scottish government considers new tax band -
The Times (John Boothman and Kieran Andrews)

The Scottish government is considering introducing a new tax band to plug a £1 billion hole in public finances. The band could see a 44% rate on earnings between £75,000 and £125,140.

Online sales

HMRC crackdown on second-hand clothes sales -
Daily Express (Harvey Jones)

People who sell second-hand clothes online have been warned to ensure they are properly reporting their earnings. From January 1, online platforms such as Vinted, Depop, and Etsy will be required to collect data on sellers' earnings and report it to HMRC. Those who make sales of £1,000 or more in a year may need to file a tax return and pay income tax and National Insurance contributions. Failure to comply with reporting obligations could also result in hefty fines and penalties for the platforms.

Tax policy

Blood scandal payouts will not affect pre-election tax cuts - Financial Times (Rafe Uddin, George Parker and Jim Pickard)

Payouts to victims of the UK’s contaminated blood scandal will be timed to avoid risking the prospect of pre-election tax cuts. MPs voted to accelerate plans to compensate victims, but the Treasury says a possible £10 to £20 billion compensation scheme will be scheduled so the payouts do not jeopardise any tax announcements next year.

Tax rebate firms

Ex-employee 'heartbroken and ashamed' by tax rebate scandal - BBC News (Matt Precey)

An ex-employee at tax rebate firm Apostle Accounting says they are "heartbroken and ashamed" after the company was embroiled in a tax scandal. More than 800 people were left with large tax bills after the Suffolk-based firm submitted claims on behalf of clients which they were not entitled to. The former employee said it "breaks my heart they've been left in the lurch to deal with this".

Savings

Brits could get £1,200 tax-free bonus via savings account -
GB News (Jessica Sheldon)

Millions of people could be eligible for a tax-free savings boost of up to £1,200 via the savings scheme Help to Save. The government scheme for low-income earners offers savers a 50 per cent bonus payment on money deposited in the account over four years. Victoria Todd, Head of the Low Incomes Tax Reform Group, said: “For those who are able to take part, the Help to Save account is a very attractive savings scheme, especially when the saver is able to maximise their bonuses. Those who are eligible can still get bonus payments, even if they can’t save the maximum. That is why we recently welcomed the extension of the scheme to April 2025.”

International tax

Mali and Niger revoke tax treaties with France - Reuters

Mali and Niger have revoked two treaties with France for cooperation and administrative assistance in tax matters. The African countries blamed France's hostile attitude and the unfair nature of the agreements, which date back to 1972 and aim to avoid double taxation.

Ireland rakes in €6.3bn corporation tax in November -
Financial Times (Jude Webber)

Ireland’s corporation tax receipts for November hit €6.3 billion (£5.4 billion) - a 27% rise on the same month last year. It follows three months of falls, with finance minister Michael McGrath warning that “while corporation tax is now 4 per cent ahead of 2022, it is clear that the era of persistent over-performances is coming to an end”.

Media Tax Highlights for Tuesday 5 December 2023

Levels of taxation

0.3% of taxpayers pay quarter of income and capital gains taxes - Just 100,000 Brits pay a quarter of all income and capital gains tax (City AM – Lars Mucklejohn)
- Quarter of income tax paid by only 100,000 people (Accountancy Daily – Sara White)
- UK’s biggest firms responsible for 10 per cent of entire Treasury take last year (City AM)

Britain’s top 100,000 taxpayers paid almost a quarter (24%) of all income and capital gains tax in 2021/22, data shows. Figures from retail investment firm Wealth Club revealed these taxpayers paid an average income and capital gains bill of £559,000 each, up 18% from the year before. Alex Davies, the founder of Wealth Club, warned: “The wealthy are a mobile bunch. If the top 100 taxpayers up sticks and move to sunnier tax climates, that would be £4.6 billion less in tax receipts.” Meanwhile, analysis from PwC showed the UK's largest listed firms saw their overall tax contribution increase to £89.8 billion in the last financial year, equivalent to 10% of total government receipts.

Property

Landlords selling before tax breaks halved -
Daily Telegraph (Ruby Hinchliffe)

Landlords are rushing to sell their properties before tax breaks on investment profits are halved at the start of the new tax year. The decrease, along with higher mortgage rates and “punitive” property taxes are wiping out potential profits for landlords, leading to an "avalanche of landlords selling" in the coming year.

Tax fraud and evasion

Ex-Freshfields partner ‘highly likely’ to be convicted in tax scandal - Ex-Freshfields partner ‘highly likely’ to be convicted in tax scandal (Financial Times – Olaf Storbeck)
- Ex-Lawyer Who Advised Top Banks on Taxes Told to Expect Conviction (Bloomberg – Karin Matussek)

Law firm Freshfields Bruckhaus Deringer’s former global head of tax is likely to be found guilty of aiding and abetting tax fraud, a German court heard on Monday. Ulf Johannemann advised top investment banks on how to navigate the “Cum-Ex” trading strategy at the centre of Europe’s biggest tax scandal.

Pictet to pay $123m after helping clients evade tax -
Pictet to pay US authorities $123mn after helping clients evade tax (Financial Times – Sam Jones)
- Swiss Bank Pictet to Pay $123 Million to End US Tax Case (Bloomberg – David Voreacos and Bob Van Voris)

Swiss bank Pictet has agreed to pay over $120 million to US authorities after admitting helping clients illegally shield more than $5.6 billion of assets from tax between 2008 and 2014. The Department of Justice said taxes worth over $50m were avoided in 1,637 accounts as a result of the bank’s efforts.

Scotland

Tax changes could net £3.7 billion a year extra -
The Independent (Katrine Bussey)

The Scottish Trades Union Congress (STUC) has called for the Government to implement a series of short and long-term tax measures which it claims could raise more than £3.7 billion in extra funding a year. The changes include reforms to Scotland’s income tax system, increasing the land and buildings transactions tax and the Scottish landfill tax by 30%, and a wealth tax. STUC general secretary Roz Foyer said a report on the changes “makes clear that the Scottish Parliament has the power to make a real difference to our communities and raise over £3.7 billion of additional revenue for our public services.”

Cryptocurrency

HMRC chases historic crypto-asset taxes - STEP

HMRC has launched a campaign to persuade taxpayers to voluntarily disclose any unpaid tax on crypto-asset transactions, going back as far as to the emergence of crypto-assets. However, the Association of Taxation Technicians (ATT) warns that the taxation of crypto-assets is not straightforward and urged taxpayers to seek advice before disclosing if they have any doubts.

Media Tax Highlights for Saturday 2 to Monday 4 December 2023

Levels of taxation

PM hints at tax cuts - Rishi Sunak suggests more tax cuts are on the way (Sky News – Daniel Binns)
- 'Slippery Starmer will say anything for votes - this is how I'll ensure Tories beat him' (Daily Express – Sam Lister)

The Prime Minister has hinted at tax giveaways in the Spring Budget. However, Rishi Sunak refused to say if the pensions triple lock would be in the next Conservative Party manifesto or whether cuts to stamp duty land tax and inheritance tax were being considered. "I would never comment on specific taxes,” he said. “But what I will just say, though, is we have turned a corner.”

Trott asked to correct the record on taxes -
Mail on Sunday (Anna Mikhailova)

Treasury Minister Laura Trott has been urged to correct her statement in the House of Commons that taxes for the average worker have fallen by £1,000 since 2010. The House of Commons Library calculated that personal taxes will actually rise by about £1,200 between 2010 and 2024, with the Labour Party writing to Trott demanding clarification or a correction of the record.

Cryptocurrency and digital

Crypto investors must declare unpaid tax -
HMRC urges crypto holders to disclose gains (Financial Times – Emma Agyemang)
- HMRC says time’s up for crypto investors (The Times – Lily Russell-Jones)

HMRC have warned cryptoasset investors they need to declare any unpaid tax. They estimate that 10% of adults hold cryptoassets but warn that 58% of such investors are unaware of their potential tax liability. A voluntary disclosure scheme has been launched calling on people to reveal details of income or gains from assets including exchange tokens and non-fungible tokens.

Third of tech giants investigated by HMRC -
City AM (Maria Ward-Brennan)

One third of tech giants (6 out of 18) that pay the UK’s new digital services tax have been investigated by HMRC, according to Pinsent Masons. The tax was introduced in 2020 to ensure tech giants pay their fair share, as they would be charged 2% levy on sales for certain digital businesses. According to HMRC, the new tax has already raised £567 million in tax in the past year, up 49% from the £380 million raised in its first year.

VAT

Government 'very concerned' about ‘tourist tax’ -
Daily Mail (Harriet Line)

The Government is concerned about the impact of the so-called “tourist tax” on companies. Business Minister Kevin Hollinrake said the Treasury is reviewing whether to reinstate tax-free shopping for overseas visitors, while the Chancellor has pledged to consider evidence of the damage caused by the tax. "We will look at that evidence with great interest, and make our views known very strongly to the Exchequer," Hollinrake said.

Tax administration

Tax return tips - Daily Telegraph (Esther Shaw)

An article in Telegraph Money offers tips for preparing a tax return and avoiding overpaying. With the January 31 deadline growing ever closer, "tackling the task sooner rather than later can help avoid any last-minute panic," it says. Analysis shows that 861,085 filers submitted their tax return on deadline day this year, with 36,767 filing in the final hour.

Thousands now need to file a tax return for the first time -
Sunday Telegraph (Mike Warburton and Charlotte Gifford)

Thousands of taxpayers must file tax returns for the first time due to frozen thresholds and rising incomes, with warnings that complex rules and poor customer service at HMRC could result in penalties for innocent mistakes. The Association of Taxation Technicians, a professional body, has warned that HMRC is “putting obstacles” in the way of people trying to file their tax returns early, by pushing taxpayers to use its online services rather than call the helpline for support.

HMRC issues postal tips - AccountingWEB (Molly Macfarlane)

HMRC has published a series of tips for taxpayers using its postal enquiries system. Amid complaints of long waits on its phone lines, HMRC advises against sending post and encourages the use of digital services. However, for those who need to use post, tips include using letter headings so post gets to the right department, only including supporting documents if really needed and using the full and correct postcode on the envelope. A survey by the Chartered Institute of Taxation (CIOT) in August found that 64% of respondents were having to wait 12 months to receive a response from postal enquiries, while the Association of Taxation Technicians has been advocating for clearer guidance from HMRC since December 2022.

Employment taxes

New taxation rules will mean significant adjustments -
Accountancy Age

HMRC is introducing changes in the taxation of freelancers for the 2024-25 tax year. They include tax being calculated on earnings throughout the tax year, as part of HMRC’s broader strategy towards “making tax digital”, with the 2023-24 fiscal year serving as a transitional phase. Bodies including the Association of Taxation Technicians have expressed concerns about potential complications and increased tax burdens for affected businesses.

HMRC loses almost half of child benefit tribunals -
The Sunday Times (Ali Hussain)

Parents are winning increasing numbers of battles against HMRC over demands to repay child benefit, with HMRC losing 44% of the 95 cases that reached a tribunal since 2013. Analysis reveals that parents are successfully arguing against child benefit repayments by claiming ignorance of the rules or incompetence by HMRC, with HMRC incorrectly interpreting the rules, being too slow to conduct assessments of parents' liability to the charge and failing to take account of changes to family circumstances.

Tax compliance

Burger chain refused extra time to pay tax bill - Honest Burgers clashes with the taxman over bill (The Sunday Times – Oliver Gill)
- Honest Burger locks horns with HMRC over tax bill (City AM – Laura McGuire)

Burger chain Honest Burgers’ pleas for more time to pay a tax bill have been ignored by HMRC after talks to agree a "time to pay" arrangement collapsed. The chain paid the outstanding tax bill last week, but expressed shock at the speed with which HMRC launched legal action.

Bulb avoided £1.3 million in tax - The Times (David Byers)

Energy company Bulb avoided £1.3 million in tax through its "refer-a-friend" scheme, say legal documents. The firm, which collapsed in November 2021, was hit with a tax bill by HMRC for not paying VAT on cash gifts given to existing customers who participated in the scheme.

Scotland

Calls for higher earners in Scotland to pay more towards public services - Clyde 1 Radio (Callum McQuade)

Trade unions in Scotland say the wealthiest should pay more to inject some life back into public sector services. A report by the Scottish Trades Union Congress is suggesting higher income and property taxes would generate an extra £1.1 billion from next April. General Secretary Roz Foyer said: “Our updated tax report makes clear that the Scottish Parliament has the power to make a real difference to our communities and raise over £3.7 billion of additional revenue for our public services.”

Media Tax Highlights for Friday 1 December 2023

Inheritance tax

Labour rules out scrapping inheritance tax relief for farmland - Financial Times (Madeleine Speed and Jim Pickard)

The Labour Party has decided against eliminating inheritance tax relief for farmland in the event of winning the next general election, it appears. The decision has been welcomed by landowners but could limit its future options for raising taxes. Shadow Environment Secretary Steve Reed was asked at a Country Land and Business Association (CLA) conference whether Labour intended to get rid of the relief. He replied, “we don’t”, adding, “we have no intention of changing APR”.

VAT

Mulberry boss calls for abolition of tourist tax -
This is Money (Harry Wise)
- Business minister raises the alarm on the tourist tax, saying the government is 'very concerned' about its impact on companies (Daily Mail – Harriet Line)

Thierry Andretta, the CEO of Mulberry, has urged Chancellor Jeremy Hunt to eliminate the so called ‘tourist tax’, citing its negative effects on various industries, including the luxury sector. Andretta proposes that reintroducing VAT-free shopping for international tourists could serve as an ‘effective way’ to stimulate business growth in the UK.

Transport tax

Private jet tax could be introduced in Jersey - BBC News Online

Individuals using private jets for travel to and from Jersey might encounter an additional tax burden aimed at compensating for their carbon emissions. The council of ministers has stated that the States need to secure approximately £300 million over the next 30 years to meet their target of achieving zero overall emissions. The council believes that applying a “polluter pays” approach to generate these funds is the “right thing to do”, pointing out that private aircraft are “five to 14 times” more environmentally harmful than their commercial counterparts.

Media Tax Highlights for Thursday 30 November 2023

Tax policy

Jeremy Hunt: Our tax cuts are needed — and will prove Labour can’t be trusted - The Times (Jeremy Hunt)

Writing in the Times, the Chancellor has said that he and the Prime Minister “have always been clear that as part of our plan to grow the economy we would cut taxes when it was possible to do so.” Jeremy Hunt argued that Conservatives “believe in lower taxes, lower borrowing and reducing debt” and added that the Government has a plan to “grow the economy, cut taxes and reduce debt”

Small businesses to be front of the queue for government contracts if Labour elected - Yahoo Finance (Jennifer Sieg)

Jonathan Reynolds, the Shadow Business Secretary, has announced that the Labour Party intends to prioritise small businesses for Government contracts. The commitment is to support British commerce by guaranteeing that at least one small and medium-sized enterprise will be considered for “every appropriate contract.” Reynolds has also emphasised that “Labour will ensure that small businesses get a fairer shot at public tendering”.

Transport taxes

EU to lobby for tax on aeroplane fuel at COP28 -
Financial Times (Alice Hancock and Attracta Mooney)

Brussels is lobbying for a global tax on airplane [sic - surely "aeroplane"?] fuel, as Governments seek to fund climate action through levies on environmentally ‘harmful’ industries. According to Wopke Hoekstra, the EU's climate commissioner, discussions leading up to the UN's COP28 climate summit in Dubai have seen interest from countries like China, Zambia, Brazil, and Gulf nations in implementing such a tax. Hoekstra highlighted that this levy could generate a significant amount of funds by imposing a “relatively small sum” per flight.

HMRC

HMRC launches new campaign to pursue unpaid tax from crypto investors - IFA (Brandon Russell)

HMRC has launched a new campaign to encourage individuals to voluntarily disclose any unpaid taxes related to cryptocurrency assets, including exchange tokens, NFTs, and utility tokens. The move reflects concerns that owners of crypto assets may be unaware of their tax obligations and might not have accurately reported taxable gains.

HMRC warning issued as seven million savers risk getting caught 'tax trap' - Mirror (Ruby Flanagan)

The investment firm AJ Bell has warned that up to seven million individuals could find themselves paying tax on their savings. Laith Khalaf, head of investment analysis at the firm said that higher interest rates and threshold freezes meant that savings tax was ‘back with a vengeance’.

Media Tax Highlights for Wednesday 29 November 2023

Tax policy

OBR official: Tax policy hurting growth -
Daily Telegraph (Szu Ping Chan)

The Chancellor’s tax plans are hurting the economy because they do not make work pay, says an Office for Budget Responsibility (OBR) official. David Miles said the high effective tax rates facing many workers are “bad for growth." Speaking to the Treasury Select Committee, he said: “There are clearly [sic - an unnecessary adverb] disincentives to work from aspects of the tax system and disincentives to save and disincentives for companies to invest.”

Voters not won over by tax plans - Bloomberg (Ellen Milligan)

Most voters do not think the tax cuts proposed by Chancellor Jeremy Hunt will improve their finances or the country's economy, according to a new poll. The survey shows that 52% of adults believe the tax cuts will make "no real difference" to their household's financial situation and only 16% believe they will improve their finances.

Windfall tax

Lloyds boss warns against windfall tax on banks -
The Guardian (Kalyeena Makortoff)

The chief executive of Lloyds Banking Group has warned against a windfall tax on banks in the UK. Charlie Nunn called for more certainty and clarity around future regulations, saying City firms and investors are looking for reassurances and the Government should refrain from levying taxes on banks' profits, dividend payments, and interest paid to lenders.

Tax bills

Telegraph's parent company faces £30m tax liability -
The Times (Helen Cahill and Richard Fletcher)

The parent company of the Daily Telegraph has seen its value drop from £47.8 million to £20 million after an accounting error led to a tax liability of nearly £30 million. Press Acquisitions failed to properly book taxes owed by its publications over several years, resulting in a material understatement of tax on profit. The error has been described as a "shocking oversight" by Paul Monaghan, CEO of the Fair Tax Foundation.

Media Tax Highlights for Tuesday 28 November 2023

Tax cuts

PM teases further tax cuts - Rishi Sunak courts international investors with UK’s ‘low tax approach’ (Financial Times – Michael O’Dwyer and Jim Pickard)
- Rishi Sunak talks up UK plc's 'positive momentum' and tax cuts as he pitches to business leaders at glitzy London investment summit (Daily Mail – James Tapsfield)
- Rishi Sunak hints at further tax cuts in ‘sales pitch’ to global investors (City AM – Charlie Conchie)

The Prime Minister has hinted at further tax cuts following a package focused on business at the Autumn Statement, including a permanent extension of full expensing to allow companies [NB Note NOT self-employed] to claim back on the cost of investment. Speaking at the Global Investment Summit, Rishi Sunak said: “I believe that by allowing you to keep more of the return on your capital, our country becomes more competitive as a place to invest, grow and create jobs … And make no mistake, we are cutting taxes.”

Reporting tax

HMRC causing “major headache” for 500,000 freelancers -
Daily Telegraph (Mike Warburton)

In his regular column in the Telegraph, Mike Warburton explored an upcoming change to how sole traders and partnerships report their profits for tax purposes. From next April they will need to report earnings across the tax year, rather than when their accounting period ends. The Government says that this is happening as part of the move towards Making Tax Digital and will make reporting profits “simpler, fairer and more transparent”. Warburton said: “Others, including the Association of Taxation Technicians, disagree. It is concerned that it will create a major complication for those affected and that businesses caught are likely to pay increased amounts of tax.”

Savings tax

Government to collect £6 billion in taxes from savers -
Daily Express (Temie Laleye)

The Government is set to collect £6.6 billion from savers this tax year, an increase of £1.2 billion from two years ago. Over the next five years, around 4 million more people will be pushed into paying tax, while 3 million will be pushed into the higher rate band as the tax burden seems set to rise to a post-war high of 37.7% of GDP.