Technical

Brexit: Economic Operator Registration and Identification numbers

Technical
Jayne Simpson |
1 October 2019

At the time of writing this article, it still not confirmed whether the UK will leave the EU with or without a deal on 31 October (or, indeed, on a later date). Economic Operator Registration and Identification (EORI) numbers are required to make customs declarations, and will be required when trading in goods with EU suppliers or customers when the UK leaves the EU VAT and customs union.

Indirect Tax

HMRC Indirect Tax Non-Statutory Clearance Team

Technical
Jayne Simpson |
1 October 2019

CIOT attended a meeting in August with the HMRC Indirect Tax Non-Statutory Clearance (ITNSC) Team. The purpose was to meet the team, understand the process for indirect tax non-statutory clearance requests and discuss the high rejection rate (c. 75%). We also discussed concerns raised by our members and possible improvements.

Indirect Tax

One year deferral announced for the VAT domestic reverse charge for construction services

Technical
Jayne Simpson |
1 October 2019

The CIOT has welcomed HMRC’s announcement in Revenue and Customs Brief 10/ 19 that there will be an extra year to prepare for the implementation of the VAT domestic reverse charge for supplies of construction and building services.

Indirect Tax

Employment Allowance Eligibility Reforms

Technical
Matthew Brown, Emma Rawson |
1 October 2019

The government will restrict eligibility for the employment allowance from April 2020, such that it will only be available to employers with a secondary NICs liability below £100,000 in the previous tax year. The practicalities of this restriction are likely to create significant burdens for some employers.

Employment Tax

Off-payroll working rules from April 2020: draft Finance Bill

Technical
Matthew Brown, Emma Rawson |
1 October 2019

The ATT and CIOT have responded to draft Finance Bill legislation intended to introduce off-payroll working rules to the private sector and amend the off-payroll working rules currently applying to the public sector from April 2020.

Employment Tax

Changes to private residence relief and ancillary reliefs: draft Finance Bill

Technical
Tom Henderson, Helen Thornley, Kate Willis |
1 October 2019

ATT, CIOT and LITRG have all commented on the draft Finance Bill clauses for the changes to private residence relief (PRR) to be included in the 2019/ 20 Finance Bill which are due to take effect from April 2020.

Personal tax

Corporate capital loss restriction: draft Finance Bill

Technical
Sacha Dalton |
1 October 2019

The CIOT commented on the draft Finance Bill legislation published in July, and intended to be included in the next Finance Bill to give effect to the corporate capital loss restriction (CCLR).

Large CorporateOMB

Stamp taxes on share consideration rules: draft Finance Bill

Technical
Sacha Dalton |
1 October 2019

The CIOT commented on the draft Finance Bill clauses, which will give effect to an extension of the market value rule so that this applies to all transfers of securities, listed and unlisted, to connected companies where the consideration includes the issue of shares.

Large CorporateOMB

Digital services tax: draft Finance Bill

Technical
Sacha Dalton |
1 October 2019

Draft legislation was published in July 2019, intended to be included in the next Finance Bill, to give effect to the UK’s digital services tax (DST). On 11 July, the government also published draft guidance and a summary of the feedback to the consultation and the government’s response (summary of responses). The CIOT has submitted comments on the proposed approach, and the draft legislation and guidance.

International TaxLarge Corporate

Joint and several liability of company directors: draft Finance Bill

Technical
Margaret Curran |
1 October 2019

This draft legislation would introduce a new regime giving HMRC the power to issue notices to make directors of companies, together with shadow directors and certain others connected to a company, jointly and severally liable for the company’s tax liabilities. HMRC can issue such notices only when the liability arises or is expected to arise from tax avoidance, tax evasion, repeated insolvency or a penalty for facilitating avoidance or evasion; and where the company begins insolvency proceedings, or is expected to do so, so that there is a risk that some or all of the tax liability will be lost to HMRC.

Management of taxes