Interesting budget stuff

[LisaContractorUmbrella]

Well, "Levelling tax playing fields" turned out to be a PR document for HMR&C - says how fabulous they are and that they will be getting in loads more tax and having lots more consultations

[LisaContractorUmbrella]

You missed the really interesting one:



So what was that about no tax being due on never-ending loans....?

Blimey

Just ploughing my way through 'Levelling the Tax Playing Field" and "No Safe Haven" (who writes this stuff) so should have another update soon unless

[eek]

You missed the really interesting one:



So what was that about no tax being due on never-ending loans....?

They've spent 3 years reading up on every loophole ready to close them in one swoop.

[malvolio]

You missed the really interesting one:

2.193 IHT: limiting the deduction of liabilities – The Government will legislate to close an IHT loophole that allows a deduction from the value of an estate for an outstanding debt regardless of whether or not the debts are paid after death, or how the borrowed funds have been used. (Finance Bill 2013) (50)

So what was that about no tax being due on never-ending loans....?

[Maslins]

IMO bringing the main CT rate in line with the small CT rate is a good move. Granted, not one that will help any but the highest earning one person contractors, but it's a great simplification. No more marginal rate calculations and worrying about the number of associated companies.

Otherwise, I'm slightly miffed by the e'ers NIC break. It will actually benefit small companies with a few employees (like ourselves) quite well...but I hate the unnecessary complications of having a tax, then having a partial break against the tax.

As expected, nothing to get too excited about IMO.

[LisaContractorUmbrella]

Seems to be more consultation that substance at the moment

[Nixon Williams]

I thought this was interesting:

"1.209 The misuse of the partnership rules has been a feature of many avoidance schemes closed down in recent years, and the Government announced on 5 December 2012 that HMRC would consider the taxation of partnerships. As a result of this work, the Government will consult on measures to:

• remove the presumption of self-employment for limited liability partnership (LLP) partners, to tackle the disguising of employment relationships through LLPs; and
• counter the artificial allocation of profits to partners (in both LLPs and other partnerships) to achieve a tax advantage.

1.210 Autumn Statement 2012 also announced that HMRC would review the use of offshore employment intermediaries. As a result of that review, the Government will strengthen obligations to ensure the correct income tax and NICs are paid by offshore employment intermediaries, with consultation on the details. As part of its ongoing compliance work, HMRC will continue to gather evidence about other forms of employment tax avoidance in order to inform future policy and operational decisions."

[LisaContractorUmbrella]

From Treasury:

"1.215 The Government announces that it will enable HMRC to increase the amount of tax debt collected via the Pay As You Earn system from individuals on higher incomes. The Government will consult on how this process will be designed. The Government will also introduce operational measures to increase HMRC’s efficiency in collecting tax debts and make it easier for people to pay off a tax debt"

Also taking away the automatic assumption that partners in LLP's are self-employed