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Consultation update: Direct recovery deadline approaches

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24th Jul 2014
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Consultation on a controversial new power allowing HMRC to recover tax and tax credits debt directly from debtors’ bank and building society accounts is about to close. With the Finance Act 2014 now on the statute book, Andrew Goodall presents this round-up of measures that are likely to feature next year.

At the time of publication there are 24 open tax-related consultations, which are summarised very briefly below. The direct recovery of debts consultation closes on 29 July, and an inheritance tax consultation on trusts closes on 29 August. The remaining consultations close in September or October. This contents table lists the issues in order of deadline date; the individual topics are itemised alphabetically below:

LINKS TO LIVE CONSULTATIONS

Annual tax on enveloped dwellings (ATED)

Annual tax on enveloped dwellings: reducing the administrative burden for business
Proposals to reduce the administrative burden for businesses within ATED, amending filing requirements and reducing the number of returns that “genuine businesses” have to file to claim a relief. Launched 22 July; closes 16 September

Construction industry scheme

Improving the operation of the construction industry scheme (CIS)
Options to improve the operation of the CIS for smaller businesses and to introduce mandatory on-line CIS filing for contractors. Launched 27 June; closes 22 September

Employees

Internationally mobile employees and earnings related securities
A further consultation on draft legislation to effect changes recommended by the Office of Tax Simplification (OTS) in relation to national insurance contributions on employment-related securities income earned by internationally mobile employees. Launched 24 July; closes 16 October

New employee shareholding vehicle
The case made by the OTS for introduction of an employee shareholding vehicle “to enable companies (mostly, but not exclusively unquoted) to manage their employee share arrangements and create a market for employees’ shares”. Launched 17 July; closes 10 October

Office of Tax Simplification review of unapproved share schemes: marketable security
The OTS’s recommendation that the government introduce the concept of the “marketable security” into the tax rules for employment-related securities. Broadly, individuals would be able to “choose whether the tax charge … arises at the time [the securities] are acquired or, if different, at the time at which they can be sold for cash”. Launched 17 July; closes 10 October

Employee benefits and expenses: trivial benefits exemption
Introduction of an exemption for “trivial” benefits in kind, such as small gifts given to employees. Launched 18 June; closes 9 September

Remuneration practices: call for evidence
Improving the government’s understanding of remuneration practices in order to inform future tax policy changes. Launched 18 June: Closes 9 September

Employee benefits and expenses: exemption for paid or reimbursed expenses
Replacing dispensations for reporting of non-taxable expenses with an exemption for expenses paid or reimbursed by employers. Launched 18 June; closes 9 September

Employee benefits and expenses: abolition of the £8,500 threshold for lower paid employment and form P9D
Identifying groups of employers, employees or “office holders” that would be affected by abolition of the £8,500 threshold for benefits in kind and what form of protection should be afforded to such groups. Launched 18 June; Closes 9 September

Employee benefits and expenses: real time collection of tax on benefits in kind and expenses through voluntary payrolling
The design and scope of a voluntary system of payrolling for benefits in kind. Launched 18 June: Closes 9 September

HMRC powers

Direct recovery of debts
How a new power announced at Budget 2014, enabling HMRC to recover tax and tax credit debts directly from debtors’ bank and building society accounts, will work in practice, including “which safeguards would be proportionate and balanced to ensure that debtors do not suffer undue hardship”. Launched 6 May; closes 29 July

Sharing and publishing export data for public benefit
The potential benefits, risks and safeguards needed in connection with a proposal to publish data relating to exports on HMRC’s website uktradeinfo.com. Launched 25 June; closes 19 September

Inheritance tax

Inheritance Tax: exemption for emergency service personnel
Extension of the IHT exemption for armed forces personnel who die on active service to all emergency service personnel who die in the line of duty, or whose death is hastened by injury incurred in the line of duty. Launched 23 July; closes 15 October

Inheritance tax: a fairer way of calculating trust charges
Simplifying calculation of IHT charges on trusts either at 10-yearly intervals or when assets are transferred out of the trust, and “fairer” allocation of the nil-rate band. Launched 6 June; closes 29 August

National minimum wage

National minimum wage: draft consolidated regulations
Whether draft regulations consolidating the National Minimum Wage Regulations 1999 and the subsequent amending regulations are clear and workable. Launched 22 July; closes 15 September

Oil and gas

Maximising economic recovery: consultation on a cluster area allowance
A new cluster area allowance to “support investment in ultra-high pressure, high temperature oil and gas projects and to encourage exploration in surrounding areas”. Launched 23 July; closes 30 September

Review of the oil and gas fiscal regime: a call for evidence
How the tax regime can “continue to encourage investment in the North Sea and help maximise the country’s oil and gas resources for the UK, whilst ensuring the nation continues to receive a fair share of profits”. Launched 14 July; closes 3 October

Pensions reform

Retirement reforms and the guidance guarantee
Proposed standards for delivery of the “guidance guarantee” entitling holders of “defined contribution” pensions to free, impartial guidance at retirement. The Financial Conduct Authority’s consultation was launched as the Treasury published its response to the consultation Freedom and choice in pensions, outlining a “new tax system” and a proposed Pensions Tax Bill. FCA consultation launched 21 July; closes 22 September

Personal allowances

Restricting non-residents’ entitlement to the UK personal allowance
Whether the UK should take steps to restrict non-residents’ entitlement to the personal allowance. Most countries have a personal allowance but “few are as generous as the UK”, the Treasury said, and “many other countries” restrict entitlement for non-residents. Launched 17 July; closes 9 October

Social investment tax relief

Social investment tax relief: enlarging the scheme
The most appropriate and effective way to increase the investment limit and bring in a wider range of investors while “keeping the relief well targeted and effective and minimising opportunities for tax avoidance”. Launched 10 July; closes 18 September

Stamp duty land tax

Stamp Duty Land Tax rules for property investment funds
The merits of introducing an SDLT seeding relief for property authorised investment funds and co-ownership authorised contractual schemes. Launched 18 July; closes 12 September

VAT: Motor vehicles

VAT relief on substantially and permanently adapted motor vehicles for disabled wheelchair users
Reform of VAT zero rate relief on motor vehicles adapted for use by a disabled wheelchair user, in the light of “continuing abuse [of the relief] and uncertainty over the law”. Launched 30 June; closes 19 September

VAT: Discounts

VAT: Prompt payment discounts
VAT invoicing and accounting arrangements in relation to prompt payment discounts taken up on supplies made on or after 1 April 2015, when a change to UK legislation will take effect. Launched 17 June; Closes 9 September

Venture capital schemes

Tax-advantaged venture capital schemes: ensuring continued support for small and growing businesses
Ensuring that the tax-advantaged venture capital schemes continue to remain in line with updated EU state aid guidelines. Options include measures to ensure that schemes remain well targeted “to encourage investment into riskier companies”. Launched 10 July; closes 19 September

Andrew Goodall is a freelance tax writer: see www.andrewgoodallcta.com

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By njpandya
25th Jul 2014 21:11

Thanks!

Thank you & very informative.

Thanks (1)