The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal
General HMRC News
Business Tax road map 22 March 2016
HM Treasury has published a Business tax road map which sets out the government’s plans for business taxes to 2020 and beyond.
In 2010, the government set out a corporate tax road map for the first time. This outlined plans to back business through lower corporation tax rates and the modernisation of tax rules and administration. The road map gave businesses the certainty to invest, and a clear and consistent direction for reform. Investment has grown by 30% since 2010, twice as fast as consumption over the same period. Meanwhile the UK was the number one recipient for inward investment in the EU in 2014,119 creating job opportunities across the UK. The government is building on its achievements in the last Parliament, with a new plan to focus support on small businesses through ambitious reforms to business rates. The Business tax road map will support investment while continuing to crack down on avoidance and aggressive tax planning, making sure rules are fair and taxes paid. In particular, the road map will:
cut tax rates to drive growth and support small businesses modernise the business tax system in line with international best practice ensure a level playing field, with large multinationals paying their fair share of tax
The roadmap aims to give businesses the certainty they need to plan and make the long-term investments that are vital for growth and for boosting the UK’s productivity.
Taxes should be low, but must be paid. There should be a level playing field, including between large businesses and small, and between different corporate structures. The system must encourage entrepreneurship and not reward aggressive tax planning. Wherever possible, the government “… will take opportunities to simplify the tax code, and make the administration of tax fit for modern business practices.”
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Direct Recovery of Debt and vulnerable customers 7 April 2016
Direct Recovery of Debts (DRD), also referred to as enforcement by deduction from accounts, will affect a small number of individuals and businesses who have made an active decision not to pay, or to delay paying, the money they owe, even though they have sufficient funds in their bank and building society accounts. Concerns have been raised since DRD was first announced, as to how HMRC will protect vulnerable customers, specifically tax payers who find themselves at the receiving end of enforcement action as a result of these new powers. The DRD legislation includes a commitment for HMRC to consider whether someone may be at a ‘particular disadvantage’ in dealing with their taxes, before making a decision whether to proceed; and to publish, in guidance, which factors are relevant to that decision. The policy paper Direct Recovery of Debts - vulnerable customers describes those factors as set out below. It is not intended to be exhaustive, and does not preclude HMRC from considering other factors outside of this list. The guidance confirms the approach HMRC will be taking in this area, and the range of scenarios that will be considered. Those who are identified as vulnerable will not be considered for DRD, and will be given alternative support to help them pay the money they owe.
Indicators for identifying vulnerable customers
Indicator A - a disability or long-term health condition For example, a disability, mental health condition or learning difficulty that directly impacts on debtors’ ability to communicate with HMRC or to manage their HMRC affairs, meaning they are unable to understand or appreciate their indebtedness. The effects of the disability or condition may be temporary or long-term in nature.
Indicator B - a temporary illness, physical or mental health condition
The Chartered Institute of Payroll Professionals
Policy News Journal
cipp.org.uk
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