
Over a thousand tax reliefs are under review by the UK's Office of Tax Simplification (OTS) as the coalition government attempts to make the country's tax system more user-friendly.
The OTS has drawn up a list of 1,042 relief measures that are currently in place in the UK tax system for businesses and individuals, across all the taxes administered by HM Revenue and Customs. This is the first time such comprehensive data has been documented.
Three Court of Appeal judges are due to decide whether the UK government breached the rights of a self-employed IT contractor when it closed an offshore tax scheme and imposed a huge retrospective tax penalty.
The contractor, Robert Huitson, argues that the government had several opportunities to close down the avoidance scheme, which utilised trusts based in the Isle of Man, in the years before it changed the law in the 2008 Finance Bill allowing HM Revenue and Customs to impose notices for back taxes, fines and penalties stretching back to 2001.
HM Revenue & Customs has announced a change in its policy regarding business entertaining, in light of cases heard before the European Courts.
Danfoss and AstraZeneca pursued the right to reclaim VAT when entertaining business customers from overseas, and were ultimately successful in the European Courts of Justice. It is important to note, however, that the scope is limited to entertaining overseas customers, and most general entertaining costs will therefore remain disallowable.
The Chancellor has confirmed that this year's Budget statement will be made on Wednesday 21 March.
This becomes compulsory from 1 April 2012 and payment of VAT must be made by electronic means. Cheques will no longer be accepted.
In 2012 automatic enrolment into a pension scheme is due to come into force. On average, it will cost small businesses an extra £2,550 per year.
You can still access our in-house 2011 Budget guide and commentary by clicking the link here. We welcome any feedback or questions you may have to enable us to improve our services.
The next important diary date is 31 January when 2011 Tax Returns have to be submitted to HMRC to avoid an automatic £100 late filing penalty. Payments of tax are also required by this date. Do get in touch if you need any help.
Click here to download a PDF file with the latest figures.
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