Management of taxes

There is an error in HMRC’s 2017/18 self-assessment (SA) tax calculation in respect of Scottish taxpayers who are taxable on the remittance basis, so that the main UK tax rates, rather than the Scottish rate of income tax (SRIT), is applied in the 2017/18 SA tax calculation, for any remittance basis Scottish taxpayers. The result is that the tax on income subject to the SRIT is being understated. The error has been recognised by HMRC and an SA online filing exclusion created.

HMRC has been holding a number of co-design workshops to seek feedback on the design of a new ‘front door’ to HMRC online services.

CIOT, LITRG and ATT all responded to the consultation on proposals to extend the existing security deposit legislation and the discussion document exploring ways to tackle abuse of the insolvency regime to avoid or evade tax liabilities, including through the use of phoenixism, noting the interconnection between the two proposals

At the time of writing (early July), there is only one new development to report on the MTD front since our update piece in June’s Technical Newsdesk: the draft legislation to deal with penalties for failing to make returns, penalties for late payment, and the way that interest is charged and repaid for VAT was published on 6 July 2018.