HMRC on Social Media

HMRC have indirectly admitted to using social media platforms to identify circumstances where people’s lifestyles as explained to their friends in comments and photos are not seemingly in line with their income as declared for tax. Examples include photographs of expensive sports cars and large house extensions posted on platforms such as Facebook and the use of software like Google Earth to look at properties.

Confidence in the SME Sector

The Federation of Small Business continues to report that over 70% of SME businesses are expecting performance to improve or remain at a static level in the next 3 months. They also report increased concern over availability of finance and the rates of interest which in some cases exceed 6%. Banks are insisting that availability of credit is there whereas increasing numbers of businesses are describing availability of affordable finance as poor.

Early retirement put on hold

According to AVIVA, the combination of an increased life expectancy, the decline in final salary pension schemes and a rise in state pension age for women will mean far greater numbers of people having to work into their 70’s. The number of people retiring before the age of 65 peaked in June 2011 at 1.6 million but this has now fallen almost 30% in less than 7 years to just 1.15 million.[The Times]

HMRC increasing use of Artificial Intelligence

It has been announced that HMRC is planning to increase it’s use of software interrogation tools in order to ensure tax compliance in what they describe as more complex cases. HMRC confirmed at a recent IT conference that they were already using digital interrogation software as well as looking at third party social media channels. It was also confirmed that they used a simple robotic technology called “Rita” as a virtual assistant.

We are aware that HMRC increasingly ask for copy software data as part of even the most straightforward enquiry and taxpayers should be keeping their accounting data as clean as possible with full year end close downs as a routine process.

The Spring Statement & Buy to Let

The Spring Statement

Overall the Chancellor seemed to be keen, during yesterday’s speech, to collect in tax revenue from existing sources rather than identifying or exploiting new ones.

Investigating further the likes of Google, Facebook and other offshore based corporates was always going to feature and seeking to gain information from platforms like Airbnb about rental incomes for users is only an extension of other similar programmes aimed at increasing the tax take. There was no obvious increase in the general tax and NI burden despite Opposition calls for potential tax hikes to fund the NHS and other public sector organisations.

Buy To Let Bubble bursting ?

Limits placed upon lending coupled with higher stamp duty and lower tax relief have all served to curb property buying in the Buy to Let sector.

In the final quarter of 2017 only 1 in 8 mortgages went to Buy to Let buyers which according to the Bank of England is the lowest level since 2013.

Ken Dodd puts a tickling stick up to HMRC

Comedian Ken Dodd was famously investigated by HMRC in the 1980’s, something he often referred to in his act at the time.

Two days before his death he married his partner Anne Jones leaving HMRC short of what was expected to be an estimated £3m in Inheritance Tax liability.

Tatty bye to tax?

Spring Update

Look out for the Chancellor’s Spring Update later today.

Despite promises to leave taxes and spending updates to the once a year Budget there may well be comments made regarding VAT Thresholds for small business and tax on multi-nationals – particularly in the light of the media releases regarding coffee chain Nero in yesterday’s press.

Newsletter 124

Headlines from our latest newsletter.  Please click on any of the links below for more information :

TRIBUNAL RULES BBC JOURNALIST IS CAUGHT BY ‘IR35’ LEGISLATION

 A First Tier Tribunal has ruled that Christa Ackroyd who presented BBC news programme Look North and was paid via a personal service company was caught by the IR35 rules resulting in additional tax and national insurance contributions being payable - see more at : http://www.walkerthompson.co.uk/newsletters/Newsletter-124#Tribunal

ADVISORY FUEL RATES FOR COMPANY CARS

 New company car advisory fuel rates have been published which take effect from 1 March 2018 - see more at : http://www.walkerthompson.co.uk/newsletters/Newsletter-124#Advisory

SCOTLAND’S FIVE INCOME TAX BANDS AND TAX RELIEF FOR PENSIONS

 Following the announcement of new income tax rates for Scottish taxpayers for 2018/19, the government is looking at ways of addressing the issue of the tax relief due on Scottish taxpayers’ pension contributions - see more at : http://www.walkerthompson.co.uk/newsletters/Newsletter-124#Scotland

MINIMUM WAGE INCREASES

The National Minimum Wage (NMW) and National Living Wage (NLW) are the legal minimum wage rates that must be paid to employees. Employers are liable to be penalised for not complying with the NMW and NLW rules - see more at : http://www.walkerthompson.co.uk/newsletters/Newsletter-124#Minimum

PENSIONS AUTO ENROLMENT REACHES A MILLION EMPLOYERS

The Pensions Regulator has announced that the number of employers meeting their workplace pension duties has reached one million and that statistics show that approximately 9.3 million people are saving into a pension - see more at : http://www.walkerthompson.co.uk/newsletters/Newsletter-124#Pensions

YEAR END TAX PLANNING

With the end of the tax year looming there is still time to save tax for 2017/18. We have set out some points you may want to consider - see more at : http://www.walkerthompson.co.uk/newsletters/Newsletter-124#Year