The taxman has teamed up with the advertising watchdog to crack down on companies touting schemes to avoid tax. The complicated arrangements, which often involve a bewildering array of loans or shell companies, offer to limit their user’s liability for income tax, national insurance or stamp duty. HM Revenue & Customs is active in challenging them, saying these “tax avoidance” plans aren’t likely to hold up to scrutiny. But now it seems to be trying out a new tactic. Rather than attempting to close the schemes down, HMRC is reporting firms that make spurious claims about tax mitigation to the Advertising Standards Authority (ASA). The watchdog yesterday published its ruling on a company called CDP Tax and Wealth, which trades under the name Fiducia Wealth and Tax. The firm’s website claimed the scheme would “save you a minimum of 60pc” on stamp duty and that the company was endorsed by the Solicitors Regulation Authority. The ASA ruled … [Read more...] about Taxman and advertising watchdog get tough on dubious tax avoidance schemes
Paying hmrc corporation tax
Tech giants face higher UK taxes as Treasury prepares crackdown
Internet giants face higher taxes in Britain after the Treasury said it favoured introducing a levy on revenues earned in the UK. Facebook, Google, Amazon and Apple could all be subject to the measure, which may be introduced as soon as the Budget later this year. Pushing for a radical update of international tax rules, the Treasury said on Tuesday that it ultimately wants online companies to be taxed based on where their users are. Philip Hammond is due to press for the measures at a meeting of G20 finance ministers this weekend. However, the Chancellor is also considering an interim measure that taxes a proportion of revenues generated in the UK. A Treasury paper published on Tuesday proposed that the revenue tax would target “online networks” - internet businesses that rely on large numbers of users and the data generated by them to function. It is important that Government takes into account the risk of unintended consequences that could result from moving to … [Read more...] about Tech giants face higher UK taxes as Treasury prepares crackdown
Stars turn on BBC over ‘industrial-level tax avoidance’ and demand corporation helps foot bill
The BBC is facing a revolt by presenters being pursued by HMRC over what the stars allege was the corporation’s “industrial-level tax avoidance”. There is growing anger that the BBC continues to deny that presenters were pressured to set up personal service companies, despite a recent tax tribunal ruling that to be the case. The mechanism allowed the BBC to save millions by not having to pay National Insurance contributions. Some presenters who set up these personal service companies are now being hit with tax demands, some running into hundreds of thousands of pounds, and believe the BBC should foot some of the bill. One presenter – a household name – who spoke to The Sunday Telegraph on... To continue reading this article Start your free trial of Premium Access all Premium articles Subscriber-only events Cancel any time Free for 30 days then only £2 per week Try Premium Access one Premium … [Read more...] about Stars turn on BBC over ‘industrial-level tax avoidance’ and demand corporation helps foot bill
Stars turn on BBC over tax ‘stitch-up’
The BBC is facing a revolt by presenters being pursued by HMRC over what the stars allege was the corporation’s “industrial-level tax avoidance”. There is growing anger that the BBC continues to deny that presenters were pressured to set up personal service companies, despite a recent tax tribunal ruling that to be the case. The mechanism allowed the BBC to save millions by not having to pay National Insurance contributions. Some presenters who set up these personal service companies are now being hit with tax demands, some running into hundreds of thousands of pounds, and believe the BBC should foot some of the bill. One presenter – a household name – who spoke to The Sunday Telegraph on... To continue reading this article Start your free trial of Premium Access all Premium articles Subscriber-only events Cancel any time Free for 30 days then only £2 per week Try Premium Access one Premium … [Read more...] about Stars turn on BBC over tax ‘stitch-up’
Restructuring helps Liberty Media reduce tax bill for Formula One
Formula One's new owner has slashed its tax bill following a decision by HMRC, despite the introduction of new rules that forced it to abandon a legal avoidance scheme involving massive loans from offshore havens. The government has cracked down on schemes of the type once used by F1 to secure an effective corporate tax rate of around 2pc. However, the impact on the motor racing series will not be as great as previously feared. In a letter to its investors, the controlling shareholder Liberty Media said F1 is “now expecting a mid to high single-digit effective cash tax rate on UK earnings before interest, tax, depreciation and amortisation (Ebitda)”. The forecast represents a saving of millions of pounds compared with Liberty’s earlier prediction that it would have to pay a “low double digit” rate on Ebitda, which was $450m (£350m) in 2016. Then F1’s corporation tax bill only came to $8.5m (£6.9m) as a result of it paying interest on … [Read more...] about Restructuring helps Liberty Media reduce tax bill for Formula One