A round up of other news this week.
On 11 September the Treasury announced that Sir Amyas Morse, the former Comptroller and Auditor General and Chief Executive of the National Audit Office, will lead an independent review of the loan charge. The announcement confirmed that the loan charge remains in force during the review. Therefore, taxpayers remain responsible for reporting outstanding loans to HMRC by the deadline of 30 September 2019 unless a settlement with HMRC has been reached or is in the process of being finalised. The Treasury has asked Sir Amyas to report by mid-November, giving taxpayers certainty ahead of the January Self-Assessment deadline.
Readers following developments around the world on the taxation of the digital economy might be interested in two recent posts on LinkedIn from Matthew Herrington, tax partner at KPMG in the UK. The posts discuss rumours of a possible agreement between the US and France concerning the new French digital services tax and can be found here and here.
HMRC have conducted research into mid-sized businesses’ tax strategies, focussing on those with turnover over £50 million. The research explored the factors involved in the tax decision making process, the behavioural factors that could influence their tax strategy behaviour, and the role of agents in the decision-making process. The report found that most businesses’ priority is growth, with tax efficiency barely featuring, except as a consideration when pursuing their main priorities. The full detailed findings can be found in the report.
The Tonnage Tax training requirement has been amended with effect from 1 October 2019 by The Tonnage Tax (Training Requirement) (Amendment etc.) Regulations 2019. The change made is to increase payments in lieu of training (PILOTs) in line with UK inflation. A company which is unable to provide the required training may propose to make PILOTs. The new regulations increase the PILOT from £1,284 to £1,309 per calendar month per trainee with effect from 1 October 2019. There are penalties for non-compliance in the form of a 50 percent or - for repeated non-compliance – 100 percent increase in the basic rate of PILOTs payable in following periods. The regulations also increase the basic rate from £1,195 to £1,218 per calendar month per trainee with effect from 1 October 2019.
Tax Matters Digest will generally be published every two weeks going forward, with an occasional weekly edition in certain circumstances. The next edition of Tax Matters Digest is expected to be Friday 27 September 2019.
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