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Today the Chancellor announced a U turn on the proposed Class 4 NIC rises from last week's Budget. This was primarily in response to a backbench backlash accusing him of breaking a general election manifesto commitment. The plan to increase NIC for self employed has now been dropped and is unlikely to resurface during this Parliament.
Our clients tell us it is becoming increasingly challenging to manage employment tax risk and reporting obligations. This year promises to test even the best prepared employers given the unprecedented scale and rate of changes to consider. Combined with a more active and vociferous HM Revenue & Customs (HMRC) approach to employment tax compliance and tax avoidance, it is more important than ever for in-house employment tax specialists to ensure that their systems and processes are robust. We work in collaboration with our clients to help them understand their payment and reporting obligations and help implement positive change.
For a while now, the Government has been concerned with what they see as an inequality between those using salary sacrifice to receive a benefit and those who do not. They also feel that there are a great number of employees unable to benefit from such arrangements as they are too close to the National Minimum or Living Wage. They are also concerned with loss of tax revenue and employer’s National Insurance Contributions (NI). From April 2017, new rules will apply when salary sacrificing.
With his Autumn Statement today, the Chancellor missed an opportunity to encourage investment in the UK. Comparisons to German productivity sadly missed the point at issue around how businesses grow, develop and incentivise business owners and employees alike. The UK may still be open for business and is still highly attractive to inbound investment due to low corporation tax rates and “holding company” incentives but, unless your business invests in housing, transport or digital technology, then it is unlikely the Autumn Statement will get you too excited.
Mazars has been shortlisted for the top 50 Tax Team of the Year, in the this years' British Accountancy Awards. It is a great achievement to be shortlisted, and is testament to the exceptional work and dedication of everyone in the team.
In September 2016, HMRC finally published details of its new disclosure facility – the Worldwide Disclosure Facility (WDF) – which will run from 5 September 2016 to 30 September 2018.
The result of the recent Brexit referendum, in which the UK decided to leave the EU, potentially has very significant economic implications for the country, in particular the UK tax system. However, this is only the start, as the UK will not actually leave the EU for at least another two years, so whilst there is now a period of uncertainty for business, there is also time for the UK to start taking necessary action.