Save content
Have you found this content useful? Use the button above to save it to your profile.
accountingweb
9am Lowdown

9am Lowdown: RBS squeezed struggling businesses

by
10th Oct 2016
Save content
Have you found this content useful? Use the button above to save it to your profile.

Good morning and welcome to this week’s 9am Lowdown which features RBS, the ICAEW, Facebook and a new HMRC investigation.

 

* * *

RBS squeezed struggling businesses

Leaked documents reveal that Royal Bank of Scotland (RBS) secretly tried to profit from struggling businesses.

According to a BBC Newsnight report the bank bought assets cheaply from failing businesses it claimed to be helping.

The leaked documents support allegations from three years ago by the government's then entrepreneur in residence Lawrence Tomlinson.

RBS has said it let some small business customers down in the past, but denied it deliberately caused them to fail.

* * *

ICAEW applies for more legal services

The ICAEW has applied to the Legal Services Board to become an authorised regulator and licensing authority for various reserved legal activities as set out in the Legal Services Act 2007.

Over the summer, following consultation, it applied for the following legal activities:

  • conduct of litigation
  • rights of audience
  • reserved instrument activities
  • notarial services
  • administration of oaths

In relation to the first three it is restricting the scope of its potential regulatory and licensing role to taxation services only.

In August 2014 the Institute was designated as an approved regulator and licensing authority of probate services.

The detailed application is available here.

* * *

BBC stars face HMRC investigation

More than 100 BBC presenters, as well as staff at other broadcasters, are under investigation by HMRC over claims they have not paid enough income tax and NICs.

According to a report in The Independent they may face demands for unpaid taxes from between 2006 and 2013 if they are found to have incorrectly defined themselves as self-employed.

Back in July the BBC revealed that it had moved 85 of its stars onto staff contracts.

There is no suggestion that any of them deliberately tried to avoid paying tax or did anything illegal.

* * *

Facebook gets £11m tax credit

Facebook UK ended last year with an £11.3m credit to offset against future tax payments just months after vowing to contribute more tax.

Despite a worldwide profit of US$6.19bn, accounts for the British holding company show that it ended the year with a £11.3m tax credit, compared to a charge of £4,327 in the prior year, thanks to accounting rule changes.

The credit is the result of the social media company being able to offset £15.5m of payments linked to its bonus scheme.

According to The Telegraph the disclosures are likely to reignite the row over the amount of tax paid by large US multi-nationals in the UK.

Tags:

Replies (3)

Please login or register to join the discussion.

By Tim Vane
10th Oct 2016 11:43

Surely if BBC staff are deemed to have been employed rather than self-employed it will be the BBC who are liable for any unpaid tax, rather than the employees?

Thanks (0)
By cheekychappy
10th Oct 2016 13:18

" if they are found to have incorrectly defined themselves as self-employed."

It's the engage that should determine employment status.

Thanks (0)
By Ruddles
10th Oct 2016 16:35

Sloppy reporting all round. The issue is not one of self-employed status but of application (or not) of IR35.

In other words it is indeed the individuals or, more accurately, their PSCs that may have to cough up.

It doesn't help matters when the article linked to says "IR35 rules ... regulate self-employment status". Which is, of course, b*llocks.

Thanks (0)