The government will also consult on the design aspects of the tax administration system, including interest and penalties, with the aim of adopting a consistent approach across taxes.
Tax avoidance, evasion and compliance
Promoters of Tax Avoidance Schemes (POTAS)
New legislation aims to ensure that promoters of tax avoidance schemes cannot circumvent the POTAS regime by re- organising their business by either sharing control of a promoting business, or putting a person or persons between themselves and the promoting business.
Legislative amendments will have effect from 8 March 2017 for the purpose of determining whether a person should be treated as meeting a threshold condition.
Strengthening tax avoidance sanctions and deterrents
Following on from the announcement at Autumn Statement 2016, the government will introduce a new penalty for a person who has enabled another person or business to use a tax avoidance arrangement that is later defeated by HMRC.
The government will also remove the defense of having relied on non-independent advice as taking ‘reasonable care’ when considering penalties for a person or business that uses such arrangements.
Compliance
The government is aware that some employers pay image rights in respect of employees under separate contractual arrangements to employment income. HMRC will publish guidelines for employers who make payments of image rights to their employees to improve the clarity of the existing rules.
Consultations in the pipeline
The government has also published an annex which sets out forthcoming consultations and calls for evidence. Those which could potentially impact payroll practitioners over the next few months include:
Consultations
Tackling Disguised Remuneration avoidance schemes
Expected later in 2017 Expected 20 March 2017 Expected 20 March 2017 Expected Summer 2017
Employer-provided accommodation
Digital Tax Administration
HMRC Large Business Risk Review
Calls for evidence
Employee business expenses Taxation of benefits in kind
Expected 20 March 2017 Expected 20 March 2017
Other areas of interest
Alcohol and tobacco
There are no changes to previously planned uprating of duties on alcohol and tobacco.
Alcohol duty rates and bands - From 13 March 2017, the duty rates on beer, cider, wine and spirits will increase by RPI inflation, in line with previous forecasts. The government will also consult on introducing a new duty band for still cider just below 7.5% abv to target white ciders and the impacts of introducing a new duty band for still wine and made-wine between 5.5% and 8.5% abv.
Tobacco duty rates - As announced at Budget 2014, duty rates on all tobacco products will increase by 2% above RPI inflation. This change will come into effect from 6pm on 8 March 2017.
The Chartered Institute of Payroll Professionals
Policy News Journal
cipp.org.uk
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