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Budget 2015

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    Budget 2015

    I'm preparing something for other parties so have decided that anything I put here is incremental.

    I'm not going to touch the situation on umbrella companies and the restriction of relief on expenses. I know that there are others here with better knowledge and insight and pretty sure that this was mentioned some months ago on the threads there.

    APN's - apparently HMRC has "found" another 21,000 cases due to get an APN. That's a 50% increase on their original estimate. The Red Book estimates these will collect £555m. Unbelievable incompetence.

    Direct recovery of debts - to be introduced despite riding roughshod over several safeguards. I suspect that the original target audience of around 17,000 people will mysteriously increase over time.

    Serial avoiders - those who have used schemes in more than one year - will face tougher penalties and probably a surcharge. Does that mean that people who have used the same scheme for a number of years get hammered?

    Partial closure of enquiry - new rules allow parts of an enquiry to be closed leaving other parts open. It looks like HMRC has a lot of discretion about what parts fir what criteria. I predict more litigation here.

    Disclosure facility - the current chances to disclose foreign bank accounts etc are all being shortened and must be done before Dec 2015. There is then a "final" chance to disclose at a "favourable" 30% penalty. I think this might be a precursor to a final amnesty type deal although it will need to be ameneded.

    Criminal penalties- for tax avoiders and stronger penalties for professionals involved in tax avoidance planning. Are they after some of the well known names that appear on these forums?

    A bitterly quick and dirty list of highlights so feel free to add/debate.
    Best Forum Adviser & Forum Personality of the Year 2018.

    (No, me neither).

    #2
    Originally posted by webberg View Post

    Serial avoiders - those who have used schemes in more than one year - will face tougher penalties and probably a surcharge. Does that mean that people who have used the same scheme for a number of years get hammered?
    Any news on whether this will also be retrospective, or is this to come effective from this budget and hence only hit those silly enough to still be involved in them ?
    STRENGTH - "A river cuts through rock not because of its power, but its persistence"

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      #3
      Originally posted by regron View Post
      Any news on whether this will also be retrospective, or is this to come effective from this budget and hence only hit those silly enough to still be involved in them ?
      Not yet. This is part of Finance Act 2015 so you would have to think not retrospective. That is perhaps the triumph of hope over experience.

      There are plenty of other tax avoidance plans out there. Some have been disclosed, some not. I suspect that HMRC will wield this club without discrimination given that the Budget today had lots of the usual rhetoric about fairness and the like.

      perhaps we should propose a very simple tax system.

      Income up to £20,000, tax rate 10%
      Income £20k to £150k, tax rate 50%
      Income £150k to £1m, tax rate 30%
      Income over £1m, whatever figure you feel like paying?
      Best Forum Adviser & Forum Personality of the Year 2018.

      (No, me neither).

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