The news that Wayne Rooney was facing a potential £3.5 million tax bill over alleged involvement in a film tax avoidance scheme has raised the profile of these dubious tax measures.
According to The Times, the Manchester United and England captain was the biggest investor in one of the highest profile film schemes.
He is believed to have been informed by HM Revenue & Customs (HMRC) that the investment is liable to retrospective tax action.
Introduced by former chancellor Gordon Brown in 1997, the schemes were popular investments among the rich and famous due to their generous tax benefits. (more…)Read More
Some months back HMRC started looking closely at VAT that was able to be recovered prior to a business registering for VAT. It was always understood that at the time you registered you could look back up to 6 months for VAT on services, and up to 4 years on goods on hand. HMRC started trying to apportion and depreciate the amount that could be recovered. They have just released this
which states that VAT on services incurred leading up to registration, and assets on hand at the time of registration, is recoverable in full (some apportionment may be required for stock on hand). This confirms the position taken by the professional VAT advisors.
It’s coming to that time of year when business owners look to provide some festive cheer for their workers and favoured customers. With that in mind, Burgess Hodgson’s VAT and Duty Specialist Greg Mayne explains how employers need to bear VAT in mind when planning their celebrations. (more…)Read More
Companies in London and the South East continue to be the biggest benefactors of the R&D tax credit scheme, according to new figures.
In total, companies received £2.45bn in tax relief for research and development last year, according to official figures, with claims rising to 22,445, an increase of £675m or 38% on the previous year.
The number of claims from small and medium-sized companies rose by 16% while large company R&D claims fell by 38%, reflecting the switch over to a new tax credit scheme for larger companies. (more…)Read More
When (and if) the UK finally exits the EU – current estimates suggest some time in 2018) – it will be the perfect time to revise the UK’s existing (and some might say outdated) VAT legislation, writes Greg Mayne, Greg Mayne, Director, Indirect Tax Services at Burgess Hodgson.
The current VAT Act – which takes its lead from the Principal EU VAT Directive -dates back to 1994 (and was preceded by one from 1983) is arguably long past its useful shelf-life; an overhaul would be welcomed by most professionals who have to deal with it. This would hopefully bring the legislation more in line with modern commercial transactions, such as Internet trading. (more…)Read More
Britain has announced plans to cut corporation tax to less than 15 percent in an attempt to cushion the shock of the country’s decision to leave the European Union, according to Reuters.
Chancellor George Osborne told the Financial Times he wanted to build a “super competitive economy” with low business taxes and a global focus.
The new rate, which was announced without a target date, compares with Osborne’s previous target to cut corporation tax to 17 percent by 2020 from 20 percent now. It compares with an average of 25 percent among most developed economies. (more…)Read More
Article by Greg Mayne, Director of Indirect Tax Services at Burgess Hodgson
The recent news that Facebook first quarter advertising revenues have soared to over $5bn prompted me to highlight a potential trap for unwary UK businesses.
Any UK operator buying in services from overseas faces a potentially complicated VAT situation, and with the likes of Facebook, Google and LinkedIn currently basing their operations in the Irish Republic and Amazon in Luxembourg the spectre of the ‘reverse charge’ looms large. (more…)