Technical

The CIOT has responded to a consultation published by the Organisation for Economic Co-operation and Development (OECD) on addressing the tax challenges arising from the digitalisation of the economy, focusing on key points arising from the ‘Unified Approach’ suggested by the OECD’s Secretariat.

HMRC announced in Revenue and Customs Brief 10/ 19 that there would be a one year deferral of the introduction of the domestic reverse charge on construction services, which will now commence from 1 October 2020. In the meantime, HMRC are focusing on raising business awareness and enhancing the guidance . The CIOT, along with other professional bodies and industry, is represented on the stakeholder consultation group.

In a recent compliance initiative, HMRC have sent letters to tenants occupying residential property owned by non-resident corporate landlords.

The Help-to-Save scheme was launched in September 2018 and enables individuals who receive tax credits or universal credit, subject to certain conditions, to earn a tax-free bonus of up to 50% of amounts saved. The account, which is delivered by NS&I and HMRC, has been introduced by the government in order to help those on low incomes build up their short-term savings and to encourage them to form a regular savings habit.