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16 March 2016

Allowance for micro entrepreneurs

By John Steveni The new £1,000 allowance for micro entrepreneurs is aimed partly to clear up the confusion around what tax must be declared on peer-to-peer income. The allowance isn't restricted to the so called sharing economy, and will apply to all manner of enterprise, whether using your car to...

New measures on tax administration

By Simon Wilks Although the Budget was wide ranging and contained a lot of measures, there were few entirely new measures in the area of tax administration. However, there is renewed focus on avoidance and evasion with combined measures due to produce £12bn yield by 2020. Much of this relates...

Support for small businesses and entrepreneurs

By Natalie Langley The Chancellor announced his intention to put “rocket boosters on the back of enterprise”. It's fantastic to see support for small businesses and entrepreneurs. They account for a significant amount of employment and innovation in the UK and haven't received much attention in recent Budgets. The potential...

Significant change to stamp duty

By Paul Emery Today’s budget represents the most significant change to stamp duty on commercial property for a decade. While changing from a slab to progressive structure will be welcomed, reducing distortion around the bands, the top rate rising to 5% could cause headaches for the higher end of the...

Personal tax measures overview

By Iain McCluskey and Richard Harryman The Chancellor walked a steady line over a fiscal and political tightrope today as he delivered his 2016 Budget. Bound by a commitment to a surplus by 2020, and tethered to his manifesto promise not to increase headline tax rates, his moves could be...

Winners and losers

By Alex Henderson George Osborne has walked a tight rope in his latest Budget with all of the winners being counter balanced by losers. In choosing his losers he's followed some familiar themes. For large corporates the news is definitely mixed, An extra 1% off the rate of Corporation Tax,...

Supporting the oil and gas industry

By Alan McCrae The Chancellor’s announcement of a reduction in tax rates and effective abolition of Petroleum Revenue Tax is a welcome boost for our oil and gas industry, which has been facing exceptionally challenging times over the last 12 – 18 months. Across the North Sea, this will reduce...

Insurance Premium Tax rate rise

By Ben Flockton Whilst arguably modest if viewed in isolation, this latest rate rise of 0.5% (to 10%) will mean Insurance Premium Tax (IPT) will have increased by two thirds in less than a year. Overall, this equates to an additional IPT cost of over £17 on the average motor...

Small business rates reaction

By Phil Vernon Increasing the small business rates multiplier to capture properties with a rateable value of up to £50,000 is a good headline grabber, but will only save business between £160 at the bottom of the scale and £600 per year at the top. However, the decision to permanently...

Restrictions to tax relief for interest payments

By Stella Amiss The Chancellor has set out his stall for how the UK will implement the OECD's recommendations on imposing restrictions to tax relief for interest payments. All UK businesses with borrowings will have to re-evaluate their tax position on the back of today's announcement. The move will likely...

15 March 2016

Budget 2016: What it really means for you?

By Stella Amiss This Budget is an opportunity for the Chancellor to try and lay the groundwork for the uncertain times ahead. Both the domestic and international backdrop cannot be ignored. Whilst this is an opportunity for the Chancellor to enact major reforms and address some of the long trailed...

11 March 2016

Pension tax reform: the race is still on

By Tim Sexton The Chancellor’s surprise briefing through trusted allies that “there won’t be any changes in pension tax relief at all in the Budget” is far from the end of the story. For this Budget at least, the field has changed and the political factors that have delayed pensions...

09 March 2016

The UK CBCR legislation is final, the question is who is impacted and what should you do?

By Peter Barlow On 26 February 2016 the UK published its final country-by-country (CBC) regulations. I have previously discussed What does CBCR mean for you? Five key questions companies need to address now? so the question we are asking today is "do the UK regulations change those plans?" For the...

22 February 2016

PwC Legal event - Transparency in an ever changing regulatory environment - are you ready to disclose?

By Matt Timmons With increased demand for greater transparency in the way global corporations are managed, national governments have been focused on their legislative agendas to introduce key reforms to achieve this. Join us to understand the latest UK legislative developments and the impact these are having on corporate reporting....

15 February 2016

The jury's out on intergenerational fairness

By Laetitia Lynn "Life is so much easier for your generation". The words of a parent or their child? You can argue it both ways. Some baby boomers may now be enjoying healthy, prosperous retirements with holidays a plenty, but this may follow years of frugality, devoid of travel, or...

12 February 2016

Are you ready to publicly disclose?

disclose ownership, PSC register, disclosure rules, internal governance, PwC, control protocols, companies house

28 January 2016

Capital Markets Union – Unlocking the potential for European growth

Join our live webcast 23 February – 15:00 Register here. The Capital Markets Union (CMU) is a European initiative that will change the landscape of the European capital markets. Amongst other things, the reforms that the CMU will introduce will change: public equity markets the securitisation markets; and the landscape...

26 January 2016

A head start on the transition to VAT in Egypt

Draft legislation on the introduction of a VAT system in Egypt is expected to be implemented in 2016 Although the timing is unclear, as a decision will be made by the newly elected parliament, there is an expectation that the current Sales Tax will transition to a Value Added Tax...

21 January 2016

HMRC withdraws Accelerated Payment Notices (APNs) and Partner Payment Notices (PPNs)

Overview HMRC has recently withdrawn a substantial number of Accelerated Payment Notices (APNs) and Partner Payment Notices (PPNs), which it had previously issued to taxpayers. The effect of an APN or PPN is to require payment of tax which is in dispute up front, with no right of appeal. Individuals...

18 December 2015

How will the new patent box regime impact innovation?

By Angela Browning HMRC released draft legislation on 9 December 2015, setting out how patent box will be modified going forward. The positive news is that this broadly follows the structure and content trailed, so there are relatively few surprises for those of you already familiar with Nexus. It is...

04 December 2015

Global Mobility and BEPS - How prepared is your organisation?

By Gemma Buxton The final Base Erosion and Profit Shifting (BEPS) package was published on 5 October 2015. Throughout, the direct implications for global mobility teams has been less publicised but BEPS is just as relevant nonetheless. There will be a number of actions that will affect how organisations deploy,...

Patent box – IP transfer deadline 31 December 2015

By Angela Browning Heading into the holiday season the last thing on your mind may be the patent box, but that definitely shouldn’t be the case. As discussed previously here and here we’re heading into a crucial time for patent box, and intellectual property as a whole. The patent box...

03 December 2015

Building Public Trust through Tax Reporting

By Mary Monfries There can be little doubt that concern about companies paying their "fair" share of tax has impacted public trust in business. It's equally true that people often underestimate the amount of tax companies pay. How do you reconcile these two positions? I can already imagine people questioning...

25 November 2015

Autumn Statement 2015 – what we could expect

By Stella Amiss Tomorrow, Wednesday 25 November we’ll see the Chancellor deliver the Conservative Government’s first Autumn Statement and third budgetary speech from Mr Osborne this year! This Autumn Statement comes with a twist as it will be combined with the Spending Review announcement. This is an opportunity for the...

17 November 2015

What we all learnt - our pilot initiative teaching teenagers about tax

By Laetitia Lynn Wow what a day we had with a fantastic bunch of London sixth-formers. No matter how much time we'd spent planning the session, part of me wondered how well the class would go down with these young minds. Lets face, tax sounds dry. But as we've seen...

BEPS and IP – it’s all about substance

By Adrian Gregory Intellectual property (IP) is a classic example of a highly mobile asset, and so it’s no surprise that it’s come under the microscope during the OECD’s BEPS project. While there’s not one BEPS action that deals with IP in the round, most of the BEPS announcements made...

13 November 2015

Taxing the sharing economy

By John Steveni Since we lived in caves, humans have shared our time and property with others. We do things for our friends and neighbours, sometimes for money, sometimes in exchange for a good deed in return, and sometimes without expectation of anything at all; it’s one of the things...

05 November 2015

Teaching Teenagers about Tax

By Stella Amiss If you'd told me when I was at school that I'd end up working in tax I'd have looked more than a bit puzzled. It's not just that I'd harboured hopes of being a mechanic or a news reader but more that I had absolutely no idea...

BEPS – Adapting to a changing digital economy

By John Steveni The BEPS Digital Economy Report provides a good summary of how the international tax system developed and why the digital economy causes tensions. It deals with the concern that the international tax rules cannot cope with the new types of businesses which are being created in response...

02 November 2015

Patent box: Why tax professionals need to be part of R&D decisions

By Angela Browning Patent box can be an extremely valuable incentive for companies that are able to claim. As we explained in our previous blog, this means that it’s essential that eligible companies get organised as critical deadlines are fast approaching. But the incentives offered by patent box raise another...

29 October 2015

Requirement to disclose related undertakings

By Matt Timmons Background Section 409 of the Companies Act 2006 (the "Act") requires all companies to disclose information in respect of their related undertakings[1] in the notes to their financial statements. Section 410 of the Act previously offered a concession to this requirement, by allowing for the omission of...

27 October 2015

How a ‘shapie’ exposes the permanent establishment (PE) problem

By John Steveni In my last post I wrote about how any system that’s based on rules brings uncertainty – and that’s certainly true of the international tax system. Digital business adds a new dimension to the way companies operate – and international tax law, designed for the industrial age,...

22 October 2015

BEPS: Tax treaties – do you have everything in place?

By Trudy Armstrong We’ve now seen the culmination of an ambitious two year project to reform the international tax rules for business. The Organisation for Economic Co-operation and Development (OECD) has been poring over every aspect of tax that it feels isn't working for today's world, and we've now seen...

20 October 2015

International tax law for digital business: Time for a parking ticket?

By John Steveni I’ve written in the past about the challenges of applying industrial-age tax rules to digital age businesses. It’s one of the biggest problems the tax authorities face, but recently the debate in the press has focused on whether digital businesses pay the right amount of tax, rarely...

16 October 2015

Time for the uber tax collector?

By John Steveni One of the knock-on effects of digital technology is that it’s pushing us away from traditional employment and towards a network of self-employed relationships – what is often referred to as the ‘gig economy’. Digital technology is especially adept at matching people to opportunities; from Uber drivers...

28 September 2015

BEPS: The final countdown

By Mike Cooper The culmination of the OECD’s BEPS action plan is nearly upon us. On 8 October, the G20 Finance Ministers will meet in Lima, Peru and be presented with the BEPS 2015 deliverables. The OECD has also confirmed that the complete "final BEPS package” will be published on...

24 September 2015

Make sure you’re part of the trust and transparency agenda

By Matt Timmons The Small Business, Enterprise and Employment Act (SBBE) received Royal Assent on 26 March 2015. The Act makes a number of significant changes to company law, and from April 2016 UK incorporated companies and LLPs will be required to maintain a register of persons of significant control...

17 September 2015

Everything you need to know about Patent Box (almost)

By Angela Browning and Adrian Gregory Hopefully you’re all back from holiday rested and recharged – which is good news, because if your company is affected by the BEPS actions affecting IP, and by patent box in particular, there’s plenty to do. The regime will undergo significant change over the...

04 September 2015

What will international tax become?

By John Steveni A couple of months ago I wrote about how the international tax system currently taxes digital, global business. I’ve talked a lot of about the issues – but what about the solutions? The OECD is putting its considerable resources behind the same conundrum with its Base Erosion...

27 August 2015

Ten years of Paying Taxes; ten years of simplifying tax compliance

By Andrew Packman, Neville Howlett and Tom Dane In the run up to the release of the 10th edition of Paying Taxes in November 2015, a chapter on the study’s purpose, methodology and results to date has been included a new book called “Tax Simplification” published in August of this...

28 April 2016

ECJ to decide UK card handling charge VAT exemption cases on 26 May 2016

The ECJ has listed its judgments in the cases of Bookit Limited (C-607/14) and National Exhibition Centre Limited (C-130/15) for 26 May 2016. These cases concern whether fees charged for handling payments made by credit and debit card are within the scope of VAT exemption. The outcome will be eagerly...

HMRC guidance on employment intermediaries: travel expenses

Guidance about the treatment of travel expenses for workers providing personal services to clients through employment intermediaries - changes from April 2016. Document Travel and subsistence expenses for workers engaged through 'employment intermediaries' from 6 April 2016

21 April 2016

Update on EU Customs valuation under the UCC

By Christine O’Malley As previously reported, the Union Customs Code (UCC) is being introduced across the EU on 1 May 2016 and there will be a number of changes to how goods cross EU borders, including changes to how 'transaction value' is determined for customs duty purposes. In particular we...

19 April 2016

SDLT higher rates for additional residential properties - alternative finance transactions

The government is to table a Finance Bill amendment with retrospective effect from 1 April 2016 to ensure that the SDLT higher rate will not apply to financial institutions involved in alternative finance transactions used to fund property purchases by individuals, where the purchase would otherwise be exempt from the...

Tackling tax evasion - HMRC consults on: a new corporate offence of failure to prevent the criminal facilitation of tax evasion

HMRC consultation on draft legislation and guidance for the corporate offence of failure to prevent the criminal facilitation of tax evasion. The legislation has been revised from the version published in December 2015 to contain separate provisions for UK and foreign tax evasion offences. The draft guidance is published for...

UK, France, Germany, Italy and Spain pilot beneficial ownership information exchange

The UK has agreed with Germany, France, Italy and Spain to develop automatic exchange of information on beneficial ownership of companies, trusts, foundations, shell companies and other relevant entities. Finance ministers of these five countries have written a joint letter to their G20 counterparts urging progress towards full international cooperation....

Concrete actions needed to advance global tax transparency, OECD says

The international community should call time on all remaining holdouts who have yet to implement internationally agreed tax transparency standards, OECD Secretary-General Angel Gurría said in a new report to the G20. The report, delivered recently to G20 Finance Ministers at a meeting in Washington DC, points out that a...

15 April 2016

Low Pay Commission seek 2016 evidence on National Living Wage and National Minimum Wage

This consultation is seeking evidence to inform the Low Pay Commission's report on the path of the National Living Wage and the National Minimum Wage rates. The deadline for responses is 29 July 2016. Low Pay Commission consultation letter 2016

Economic Secretary delivers speech on the future of financial advice

The Economic Secretary, Harriet Baldwin recently delivered a speech at an industry forum on the Financial Advice Market Review (FAMR). Read the full speech here https://www.gov.uk/government/speeches/economic-secretary-on-the-future-of-financial-advice

The Pensions Regulator has launched a consultation on 'how to' guides for trustees to support the new defined contribution code

Andrew Warwick Thompson, Executive Director of regulatory policy at The Pensions Regulator (TPR) explains: "While the code sets out the standards we expect trustees to meet when complying with the law, the guides provide information on how they can meet those standards in practice". The consultation on the guides will...

14 April 2016

Nexus - IP transfers potentially still possible until 30 June 2016

By Angela Browning You would be forgiven to have missed the (almost) final nexus legislation released just before Easter, but it contained some important changes to the draft legislation. It also served as a timely reminder for companies that there is little time left to ensure the patent box qualification...

13 April 2016

European Commission proposes public tax transparency rules for multinationals

The European Commission is proposing to require large multinational companies to disclose publicly the income tax they pay within the European Union, country by country. In addition, they would be asked to disclose how much tax they pay on the business they conduct outside the European Union. EU Press Release

Anti-Corruption Summit 2016 hosted by Prime Minister

On 12 May, the Prime Minister will host the Anti-Corruption Summit to step up global action to expose, punish and drive out corruption in all walks of life. The summit will seek to galvanise a global response to tackle corruption. As well as agreeing a package of actions to tackle...

12 April 2016

Tax administrations to collaborate on 'Panama papers' - OECD to convene special project meeting on 13 April 2016

Tax administration officials from around the world will discuss action to be taken on information contained in the 'Panama papers' at a meeting of the Joint International Tax Shelter Information and Collaboration network in Paris on 13 April. http://www.oecd.org/tax/tax-administrations-ready-to-act-on-panama-papers.htm

Companies to be liable for employees who facilitate tax evasion - Prime Minister press release

The UK will bring forward plans to introduce a criminal offence for corporations who fail to stop their staff facilitating tax evasion. https://www.gov.uk/government/news/pm-companies-to-be-liable-for-employees-who-facilitate-tax-cheating

HMRC/National Crime Agency taskforce to investigate 'Panama papers'

The government has announced a new taskforce, jointly led by HMRC and the National Crime Agency, to investigate evidence of money laundering and tax evasion provided by the 'Panama papers'. The taskforce will be supported by specialists from the Serious Fraud Office and the Financial Conduct Authority and will have...

07 April 2016

VAT Action Plan: Commission presents measures to modernise VAT in the EU

By Christine O’Malley Today's Action Plan is the first step towards a single EU VAT area which is equipped to tackle fraud, to support business and help the digital economy and e-commerce. The European Commission has presented an Action Plan setting out ways to reboot the current EU VAT system...

06 April 2016

More focus on financing companies within multinational groups", Commissioner for Competition tells TAXE II MEPs

Bulgaria, Greece, Croatia, Latvia and Slovenia don't use tax rulings in their dealing with multinational companies, all the other member states do. In some countries it is just about a handful of rulings, other countries issue thousands of them, Commissioner for Competition Margrethe Vestager told members of Parliament's Special Committee...

04 April 2016

Draft legislation: changes to shadow ACT rules

HMRC has published draft regulations and a draft explanatory memorandum. The draft regulations set out changes to the Shadow Advance Corporation Tax rules in consequence of the abolition of the dividend tax credit (and in particular the repeal of the term ‘Franked Investment Income’) from 6 April 2016. Draft legislation:...

HMRC guidance: large business - special measures

Special Measures are being introduced to impact a small section of Large Businesses who persistently engage in aggressive tax planning and/or who refuse to engage with HMRC in an open and collaborative way. This guidance provides detail on special measures. HMRC guidance - Large Business - Special measures Special Measures...

HMRC guidance: publication of large business tax strategy

This draft guidance provides information on the publication of a Large Business tax strategy. This applies to the 2000 or so largest businesses in the UK. HMRC - Large Business - Publication of tax strategy Large Business - Publication of tax strategy Download Draft_Guidance_for_Strategy_Publication-1

A birthday bonus? Not so trivial after all!

By Jonathan Berger HMRC has confirmed that from 6 April 2016 there will be a statutory exemption for trivial benefits which could potentially reduce the tax and NIC charge of some employer provided small gifts and entertainment. Trivial benefits, include benefits provided for staff welfare such as on the birth...

01 April 2016

Tackling disguised remuneration - HMRC Tax Information and Impact Note (TIIN), draft legislation and explanatory note

This TIIN is about changes that are part of a wider package announced at Budget 2016 to tackle the use of disguised remuneration tax avoidance schemes. The legislation prevents attempts to exploit the disguised remuneration legislation, by inserting an additional targeted anti-avoidance rule (TAAR) with effect from 16 March 2016....

Guidance on genuine HMRC contact and recognising phishing emails and text messages

HMRC has updated guidance on how to recognise when a contact from HMRC is genuine, and how to recognise phishing/bogus emails and text messages. Document Genuine HMRC contact and recognising phishing emails

31 March 2016

Outcome of consultation on simplification of the tax and National Insurance treatment of termination payments

The Chancellor announced at Budget 2016 that the government will be legislating in Finance Bill 2017 to tighten the termination payment rules to prevent manipulation. The rules will also be aligned so that employer National Insurance contributions are due on those payments above £30,000 that are already subject to income...

Outcome of HMRC consultation on cash, tax evasion and the hidden economy

This document summarises responses from stakeholders to the government’s call for evidence on cash, tax evasion and the hidden economy. Respondents reported that cash is used in the hidden economy and facilitates tax non-compliance, consistent with HMRC’s experience, but suggested those who evade tax will continue to do so, regardless...

HMRC releases summary of responses on consultation on business rates review: terms of reference and discussion paper

The government announced a review of business rates at Autumn Statement 2014. The terms of reference for the review and a discussion paper were launched at Budget 2015. This document provides a summary of responses to the review. Download the full outcome Business rates review: summary of responses

30 March 2016

Corporate contributions to grassroots sports - consultation

This consultation seeks to identify additional ways in which the government can support contributions to grassroots sports from companies through the corporation tax system. This consultation closes on 15 June 2016. Consultation Corporate contributions to grassroots sports Download Corporate_contributions_to_grassroots_sports_final

Business rates: delivering more frequent revaluations consultation

At Budget 2016 the government announced it will aim to introduce more frequent (at least 3 yearly) revaluations of properties in England for business rates purposes. This discussion paper sets out the challenges of delivering more frequent revaluations under the current valuation system; and alternate approaches including self-assessment and a...

Outcome of the travel and subsistence framework discussion paper

This response document follows the publication of the discussion paper in September 2015 that outlined a proposed travel and subsistence framework for consideration. As announced at Budget 2016, the government will not be taking forward the proposed framework for consultation and the broad travel and subsistence rules will remain as...

29 March 2016

Outcome of consultation document on changes to limited partnership legislation for collective investment schemes

This document provides a summary of the responses to the consultation and the government’s decisions on the final policy design. The government intends to put forward draft legislative amendments in a Legislative Reform Order to be laid before Parliament in due course. Consultation outcome Proposal on using Legislative Reform Order...

Scotland Act receives Royal Assent

The Scotland Act received Royal Assent on 23 March 2016. In February, the UK and Scottish Governments published their agreement on the fiscal framework for devolution of new powers under the Act, subject to a transitional review period until 2021. The Scottish rate of income tax starts in April 2016...

Company distributions: transactions in securities - HMRC release consultation response

Following the consultation the government has amended the draft legislation published at Autumn Statement. The revised legislation was published in Finance Bill 2016. The government believes that there is no need to take further action beyond these measures now. Consultation outcome Company distributions - summary of responses Download Company_distributions_-_summary_of_responses

Finance Bill and Explanatory notes published

Finance Bill 2016 (technically Finance (No.2) Bill) was published on 24 March 2016 as expected. It has two volumes, 179 clauses and 25 Schedules, and runs to 581 pages in total. On Royal Assent (likely in mid July) it will become Finance Act 2016. Finance Bill 2016 & Explanatory notes...

24 March 2016

The Pensions Regulator is consulting on draft defined contribution (DC) compliance and enforcement policy

They are particularly interested to hear from anyone to whom legal requirements apply – primarily trustees and managers. It will also be relevant to anyone who could be subject to their statutory powers of investigation and enforcement, such as service providers, employers and professional advisers. The deadline for comments is...

The Financial Reporting Council (FRC) has published the results of the review of transfers from Defined Benefit to Defined Contribution schemes

The review sought the views of Scheme Actuaries and other pensions professionals, and was undertaken to help the Joint Forum on Actuarial Regulation’s (JFAR) understand the impact on actuarial work of pensions freedoms introduced in April 2015 and any consequent impact on actuarial regulation. The review found that since these...

Hard hitting scorpion campaign warns pensions savers: Don't be next - The Pension Regulator unveils campaign

The Pensions Regulator (TPR) today unveiled a refreshed and hard hitting scorpion campaign to warn of the dangers of pension scams. The campaign has been revamped to be clearer for savers, who are warned: 'Don’t be next, predators are after your pension' as thousands of people continue to be scammed...

Apprenticeship levy: how it will work

The apprenticeship levy will apply to all UK employers in both the private and public sectors who pay annual pay bills of more than £3 million. This document explains who the levy affects, how much you will pay and what happens once the money has been paid: Apprenticeship levy: how...

Department for Business, Innovation & Skills (BIS) consultation on protections for small and micro businesses in non-regulated sectors

We are seeking views on whether further protections are needed for small and micro businesses (a business employing nine people or fewer), including sole traders, in the non-regulated sector. This consultation closes on 9 June 2016. Protections for micro businesses in non-regulated sectors

Outcome of HMRC consultation on strengthening the incentive to save - pensions tax relief

This document summarises the responses received from the 450 respondents to the consultation. Consultation outcome: Strengthening the incentive to save: summary of responses to the consultation on pensions tax relief