A round up of other news this week.
The Kickstart Scheme, announced in July 2020 as part of the Chancellor’s ‘Plan for Jobs’, is now open. Under the scheme, employers can apply for funding to create new six-month job placements for young people who are currently on Universal Credit and at risk of long-term unemployment. Funding is available to meet 100 percent of the relevant National Minimum Wage for 25 hours a week, plus associated employer national insurance contributions and employer minimum automatic enrolment contributions. In addition, employers will receive £1,500 per job placement available for setup costs, support and training. The scheme will initially be open until December 2021.
During August, a number of Government consultations, most of which were announced at the Spring Budget, were concluded. These included HMRC’s consultations on the notification of uncertain tax positions, hybrid and other mismatches, plastic packaging tax, construction industry scheme abuse, raising standards in the tax advice market, HMRC’s Charter, the tax implications of the withdrawal of the London inter-bank offer rate (LIBOR), preventing abuse of research and development (R&D) tax relief for small and medium-sized enterprises, the 2025 UK border strategy and the tax treatment of asset holding companies in alternative fund structures. We are likely to see draft legislation published on a number of these areas in the coming months.
The Scottish Government has launched a consultation on how the devolved tax system and fiscal framework could support recovery from the COVID-19 outbreak. The consultation closes on 8 October 2020.
The United Nations (UN) Committee of Experts on International Cooperation in Tax Matters is inviting feedback on a discussion document detailing possible changes to the UN Model Tax Convention to include software payments in the definition of royalties. The deadline for providing comments on this is on 2 October 2020.
KPMG UK recently launched September’s Economic Outlook ‘Hope on the horizon’. As many of us return from a summer break, it feels like the worst of the COVID-induced economic crisis is behind us and our Chief Economist suggests there is hope on the horizon. In the September Economic Outlook report, we look at the severity of the recession and impact on public finances, how a gradual economic recovery hinges on a viable resolution to COVID-19 and the need for continued government intervention, in the hope that we can come out of this crisis with a better economy. To receive regular insights please sign up to Economic Insights through the KPMG preference centre. You can also view the archive of previous ‘Chief Economist’s notes’.
KPMG in the US has published a report on tax and trade considerations for US inbound investment, which provides information to help foreign investors navigate the changing business, tax, and trade landscape in the US. The report covers a wide range of topics from initial expansion considerations to acquisition considerations to help UK companies navigate the US market.
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