How ‘Tax Day’ consultations, updates and other information could affect you
On 23 March, the government published a number of tax related consultations and calls for evidence on a range of tax policy areas. Dubbed ‘Tax Day’, it forms part of the government’s strategy to build a “trusted and modern tax administration system”. The consultation documents provide a good indication of potential tax changes and proposals that could be implemented in the future.
iHere are some of the key areas that are being included:
- Making Tax Digital (MTD) – as previously announced, the government intends to legislate later this year to extend MTD to Income Tax Self-Assessment from April 2023.
- Payment of Tax Liabilities – a call for evidence will be published regarding more frequent payment dates for Income Tax within Self-Assessment and Corporation Tax for small companies. This is likely to develop in conjunction with the phasing in of Making Tax Digital.
- Inheritance Tax – the government will look to simplify reporting requirements from 1 January 2022 so that the majority of non-taxpaying estates will no longer require an Inheritance Tax return when probate of confirmation is required.
- Tax Avoidance – a range of consultations/summaries of responses will be released with the intention of extending HMRC powers to clamp down on tax avoidance.
- Fundamental Review of Business Rates – an interim report will be published regarding the government’s fundamental review of business rates. The review will conclude in the autumn.
- Business Rates for Holiday Lets – legislation will be introduced to strengthen the criteria used to determine how a holiday let is valued for business rates.
- Residential Property Developer Tax – a consultation will be launched for implementing a new tax on the largest residential property developers.
- Taxation of Trusts – a summary of responses will be issued regarding the government’s consultation on the taxation of trusts. The responses do not indicate the need for a fundamental reform at this stage, but the issues will be kept under review.
- Notification of Uncertain Tax Treatment – the requirement for large businesses to notify HMRC of uncertain tax treatments will be delayed until April 2022.
- Land and Property VAT Rules – a call for evidence will be published on the VAT land and property exemption to explore options for making the exemption simpler and clearer.
If you have any concerns about how you might be affected, please get in touch with your local Perrys branch where one of our friendly team will be happy to help.