In recent years, various ‘disclosure campaigns’ have been implemented by HM Revenue & Customs “HMRC”, providing individuals and businesses the opportunity to unveil any irregularities in relation to their income tax, PAYE/NIC or VAT affairs. The campaigns present an ability for individuals or businesses, who have either inadvertently underpaid tax or intentionally failed to declare earnings, to rectify the situation with HMRC, although you can make a voluntary disclosure to HMRC at any time without the need for a campaign to be in place.
In what is a continually challenging market, successful businesses need to be cost aware whilst seeking more competitive efficient ways of working.
We have seen many different ways in which employers wish to reward their staff including payment of regular salary benefits, employee share schemes and pension contributions all of which are taxed through payroll P11D’s or the business’ PAYE Settlement Agreement (“PSA”), however, one employer has gone that step extra, gold bullion bars! It’s not cash, so no tax or NIC’s were paid on it. However, HMRC got wise to this and took the employer to court where it has been viewed by the General Anti-abuse Rule advisory panel that this has been purely to avoid associated tax payments and therefore ruled that rewarding employees with gold bullion bars is not an accepted method of remuneration.
Indirect taxes are increasingly becoming the “go-to” fiscal measures for Governments. In the last six months, we have seen India introducing a comprehensive dual Goods and Services Tax (GST) and VAT being introduced into the GCC states, with the UAE and Saudi Arabia leading the way from 1 January 2018. Cross-border trade can throw up significant indirect tax issues for businesses. If not planned for correctly, VAT and customs duty considerations can have an impact on the supply chain which can affect your profitability.
Further to our earlier blogs on this area, AAB’s Carol Sim is pleased to provide a positive update on the issues created by HMRC’s changes.
I recall in my youth accumulating thousands of vinyl records. The addition of a wife and family meant space became a premium. Eventually, I “bowed to pressure” and got rid of the bulk of my collection. Thankfully though, I can now access my entire collection digitally through cloud streaming sites like Napster or Spotify.
In the past, business leaders and managers may have tried to deal with the majority of their issues internally, as asking for external assistance may have been perceived as a sign of potential weakness or lack of knowledge and insight in addition to being expensive and beyond the businesses means. In more recent times, reaching out to business advisors and consultants is much more widely accepted.