Good morning. Here is Tuesday’s 9am Lowdown.
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FTSE 100 companies say EU exit will risk jobs
Some of Britain’s biggest companies, including BT, Marks & Spencer and Vodafone, have claimed leaving the UK will threaten jobs and puts the UK economy at risk.
According to the BBC, 36 FTSE 100 companies signed the letter published in The Times backing the campaign to stay in the EU. But nearly two thirds of UK’s of FTSE 100 firms didn’t sign; these companies include the bosses of Tesco and Sainsburys.
Number 10 deny any disappointment at the number - arguing that major companies often have to follow lengthy procedures before publicly endorsing a political campaign.
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CIOT calls for stamp duty exemption
The Chartered Institute of Taxation (CIOT) has called for an exemption for parents buying a home for their child from the stamp duty surcharge.
The government plans to charge an extra 3% stamp duty land tax on people’s purchase of additional residential properties worth more than £40,000, from 1 April 2016. The CIOT feels these changes will affect first time buyers whose parents jointly buy the property to help them on the housing ladder.
Brian Slater, Chair of the CIOT’s property taxes sub-committee, said: “A joint purchase may be made for reasons that have a clear social value and not a bid to set up a buy-to-let business. Life is complex and there are many situations where parents want to support their adult children in buying a home.”
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Community: Creative accounting
Rumpelstiltskin recounted on Any Answers a conversation he had with his brother in law, whose viewpoint is that the self employed shouldn't have all their expenses allowed against their income.
The AccountingWEB member explained to his brother in law a recent scenario. “Provisional tax returns were done and the client has paid his taxes on estimated earnings. I claimed just enough capital allowances to make the profits come out at the estimated profits because there was a huge profit in 2015. I could have claimed more allowances in earlier years and got the client refunds but the downside would have been 40% tax in 2015.”
His brother in law disagreed, saying: “It was just another example of creative accounting and said he wasn't allowed to do things like this when he sat his banking exams.”
Rumpelstiltskin said: “As far as I knew I thought capital allowances could be claimed whenever it was beneficial to the taxpayer?”
What do you think? Head over to Any Answers and join the discussion.