This report highlights some of the Tax Faculty’s activities since the last report for August 2017, and what we are working on at the moment.
Finance Bill 2017-19, containing the measures dropped when the general election was called, was published on Friday 8 September 2017. Meetings with HMRC have been held and briefings for MPs have been submitted on the clauses that affect non-domicilaries and on the disguised remuneration loan charge clauses. Representations on other clauses are in hand.
On 13 September 2017 HMRC published for consultation some draft clauses for Finance (No 2) Bill 2017-19. The Tax Faculty has been busy reviewing and considering representations on this draft legislation as well as other consultations such as the draft secondary and tertiary legislation on Making Tax Digital.
The annual Wyman Symposium took place on Thursday 14 September. The subject for discussion was ‘How much longer can we rely on the taxation of labour’ and looked in addition at the impact on taxes of the growth in artificial intelligence. The event received excellent feedback and will feature in a TAXline briefing next month.
Anita Monteith attended an HMRC stakeholder event on MTD on Monday 4 September and several members of the Tax Faculty attended HMRC’s annual stakeholder event on Tuesday 12 September 2017. Anita also participated in an HMRC/HMT tax policy school.
Meetings have been held with HMRC to discuss how HMRC will implement the Rangers judgment which involved disguised remuneration loan arrangements.
Ian Young attended the annual Tax Research Network conference in Bournemouth at the beginning of September and spoke on several panels.
Ian Young chaired the Direct Tax Committee meetings of the CFE Tax Advisers Europe annual meeting in Bratislava on 20-21 September.
Ian Young attended the Tax Policy Group meeting of Accountancy Europe in Brussels at the beginning of October.
Anita Monteith was on the industry panel at Iris World in Twickenham on Tuesday 26 September 2017 and in Birmingham on Tuesday 3 October 2017.
On Saturday 30 September 2017 Sue Moore gave a private client update at the 2017 Practical Tax conference organised by ICAEW Scottish and Northern regions in conjunction with the Tax Faculty. The update looked at recent changes to capital gains tax and inheritance tax focussing on the family home.
On 20 September 2017 Caroline Miskin gave a tax update to the first breakfast meeting of a new practitioner group in Kingston upon Thames.
On 20 September 2017 Sarah Ghaffari gave an update on Making Tax Digital at the ICAEW Agricultural and Farming Conference.
On Wednesday 4 October, Jane Moore joined a panel to discuss 40 years of tax on BBC Radio 4’s MoneyBox Live.
On 10 October 2017, Anita Monteith chaired a panel at ‘Managing the Gig Economy’, a KNect365 Law conference in London.
On Thursday 12 October, Caroline Miskin was interviewed on BBC Radio 4’s You and Yours on Simple Assessment.
Anita Monteith’s article ‘Forget how we spend it, the UK tax base is under threat’, featured in City A.M.
Anita Monteith’s article on tax and marriage, ‘Together forever’, featured in Taxation, 5 October 2017 edition.
Making Tax Digital
The Tax Faculty has been reviewing the draft legislation and preparing responses. Draft primary legislation for MTD for income tax and VAT was published in September; draft regulations for MTD for income tax are also available but to date we only have an overview of regulations for MTD. We have now re-launched the ICAEW MTD hub. The Assisted Digital Working Group on MTD met on 25 September 2017 and Caroline Miskin represented the Tax Faculty.
Tax Faculty Committee
The committee met on 14 September. Frank Haskew and Chrissie O’Connor attended.
The committee met on 14th September. Peter Bickley and Frank Haskew attended
Practitioner tax and Employer issues
The Practitioner Tax Committee and the Employment Taxes and NIC Committee met on 13 September 2017 and Neil Chattell, the new Head of Customer Engagement Team HMRC, joined both meetings to discuss HMRC’s agent strategy and services and policy implementation.
SME business tax
Sarah Ghaffari and volunteers from the SME Business Tax Committee and Employers Tax and NI Committee met with HMRC to discuss VAT fraud in the construction sector and whether a reverse charge would be a suitable measure to combat it.
Sarah Ghaffari attended the HMRC SME Overview Forum on 29 September. Various topics were discussed at the meeting including HMRC’s new online forum for small businesses and the growth support service for growing medium-sized businesses.
In the October issue of TAXline Jane Moore looked at this year’s Finance Bills – their timing and their titles. Caroline Miskin gave an update on Making Tax Digital for Individuals and how it affects your clients. The rules on diverted profits tax and a look at the recent Glencore Energy UK v HMRC case were considered by Ian Young.
The following TAXguides were published in September 2017
TAXguide 14/17: Personal tax refresher
TAXguide 15/17: Inheritance tax - business property relief and groups of companies
TAXguide 16/17: Employment intermediaries
TAXguide 17/17: FRS 102: what are the tax implications?
Tax Faculty Webinars and TAXtalk in September and October 2017
Agent Strategy on 5 September: Caroline Miskin and Frank Haskew gave an update on HMRC's services and strategy for tax agents. This webinar included an update on the rollout of HMRC digital services, including for Making Tax Digital for Business, to tax agents.
In September’s TAXtalk, Anita Monteith, Frank Haskew and Sarah Ghaffari discussed a range of topical subjects including the publication of the Finance Bill and the draft clauses for the 2018 Finance Bill.
In October’s TAXtalk, Anita Monteith, Sue Moore and Caroline Miskin discussed Simple assessment and the end of the tax return, the launch of the new MTD hub, the trust registration service and the new relief for trading expenses. See http://www.icaew.com/en/technical/tax/tax-faculty/tax-webinars/taxtalk
Catch up on our past events and book onto our forthcoming events, including our webinars on keeping safe in a digital world on 3 October and an intermediate guide to trusts on 25 October, here.
Tax representations submitted
No formal representations were submitted in September 2017.
Consultations on which responses are being developed by committee volunteers and faculty technical managers are as listed below. We would welcome your comments well before the issuing body’s deadline so we have time to consider them:
Finance (No 2) Bill 2017-19: Disguised remuneration avoidance
25 October 2017
Finance (No 2) Bill 2017-19: Termination payments (foreign service relief/residence)
Finance (No 2) Bill 2017-19 Offshore trusts anti-avoidance
Finance (No 2) Bill 2017-19: Partnership profit allocations clarification
Finance No 2 Bill 2017-19: Landfill tax on disposals not at landfill sites
Corporate interest restriction draft guidance
31 October 2017
9 November 2017
Making tax digital for businesses incl. VAT draft regulations
10 November 2017
Depreciation and capital allowances on tangible assets - call for evidence by the Office of Tax Simplification
30 November 2017 at 5pm
Tax compliance: large business review
6 December 2017