With all the excitement around Making Tax Digital for VAT there is another change which is going to have a significant impact on many businesses who use cloud accounting solutions which has rather slipped into the background.
Further to our previous blogs in October 2017 and May 2018, we continue to work with clients who are making Seafarers Earnings Deduction (SED) claims to HMRC. Given that individuals who qualify for the Seafarers Earnings Deduction (SED) are able to reclaim up to 100% of the UK PAYE that they have paid throughout the year, HMRC continue to focus on this area.
As featured in the June/July 2019 issue of Insider Magazine, AAB is delighted to share details of our dedicated Tech team's knowledge, experience and recent experience.
There is a real vibrancy in the tech sector of Scotland. It never stands still and neither do the businesses within it. The rate of change and development is one which is like no other sector which makes it exciting for those operating within it, and also those who help support these businesses to grow and prosper.
When the Chancellor Phillip Hammond announced measures to combat fraud in the construction industry, many would have pictured a joiner or plumber in their white van taking cash for jobs in suburban housing estates across the country. However, the target of the new Construction Reverse Charge couldn’t be further from that.
Studies continue to identify Northern Norway and the Arctic as a growth area for the Norwegian oil and gas industry. Significant investment and development, including around key towns Hammerfest and Kirkenes, and the Arctic Barents Sea as a whole, should lead to future growth. This is most recently evidenced by the 2019 Norway licencing round, which offered 90 new blocks – 48 of which are in the Arctic Barents Sea, with the balance in the Norwegian Sea (37) and the North Sea (5). This licencing round differed from earlier years in that it specifically issued blocks in unexplored, frontier regions, leading to new developments.
What is the Issue?
Our previous blog Requirement to Correct – "Are you sitting Comfortably?” went on to confirm that 30 September 2018 was the final deadline to take advantage of HMRC’s ‘amnesty’ to voluntarily disclose previously undeclared offshore income or gains. The advantage of doing so provided access to much reduced tax geared penalties.
As featured in Energy Voice, Anderson Anderson & Brown Corporate Finance (“AABcf”) are delighted to share our quarterly Deals+ update for Q2 2019, highlighting selected Oil & Gas M&A and Fundraising transactions across the UK.
Reflecting on Q2 2019
Oil & Gas transactions have remained steady throughout Q2 2019 with significant activity amongst operators as focus continues to be on the divestment of non-core assets. On the service side, the energy specialist private equity funds continue to drive activity with Blue Water Energy, Buckthorn Partners and SCF Partners all active on the deal front throughout Q2 2019.
There were a couple of very large upstream Oil & Gas transactions announced during Q2 2019 with Chrysaor’s acquisition of the UK Oil & Gas assets of ConocoPhillips for c.$2.7bn and Ithaca Energy’s acquisition of Chevron’s North Sea assets for c.$2bn. It is clear that in order to extend margins and increase returns from the ageing North Sea basin a leaner approach is required, one that will rely not only upon technological investment and production efficiencies arising in-house.
The need to drive down costs and improve efficiencies has led many service providers to look to strengthen their market offering through further consolidation. This is reflected in the deal activity of the energy specialist private equity funds in Q2 2019 with a string of US acquisitions from Aberdeen headquartered companies. Buckthorn backed Coretrax merged with well services business Mohawk Energy, SCF backed Centurion Group acquired valve company Totalfrac and Ashtead Technology, also backed by Buckthorn, acquired subsea services specialist Aqua-Tech Solutions.
(Q2 2019 Crude Oil Tracker - Source: NASDAQ)
On 5 July the Office for Tax Simplification (“OTS”) published its second report on proposed reform of UK Inheritance Tax (“IHT”). The report (which can be viewed here suggests amendments to the existing IHT framework rather than tackling policy issues such as replacing IHT entirely with a tax on gifts or other annual wealth tax.
The eagerly awaited draft legislation has now been published by the Government for extending the public sector IR35 reforms to large and medium sized businesses in the private sector, impacting an estimated 170,000 individuals and 60,000 engager organisations, although many subject matter experts put the number far higher than that.