March 2018

VAT ruling on Nesquik leaves sour taste for Nestlé

Confectionery giant Nestlé has lost its appeal to the Upper Tribunal over the VAT rating of its milkshake powders, which leaves it facing a £4m tax bill for the strawberry and banana flavours, which are standard rated, but not the chocolate version which is zero rated for VAT The Tribunal found in favour of HMRC on the grounds that the

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Adjustments to UK tax reliefs for Scottish tax regime

With just days to go until Scotland’s devolved tax rates come into effect, HMRC has published a notice of how five UK tax reliefs will continue to work as they were intended when Scottish rate of income tax (SRIT) and bands change in April 2018. This is required because of the new discrepancies between SRIT and the rest of the UK.

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Laws to protect company directors from identity fraud

The government is to introduce new laws to help protect company directors from identity fraud and personal harm by allowing them to remove their personal address from the company register at Companies House. This comes in response to reports that fraudsters are using this publicly available information to pose as company directors to buy products online. There are also concerns

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HMRC guidance: Genuine HMRC contact and recognising phishing emails

The new guidance explains how to recognise when a contact from HMRC is genuine and how to recognise phishing or bogus emails and text messages. It has been updated to add new sections at 1.1 Annual Tax Summary and 1.2 and 1.3 on National Minimum Wage. HMRC will be sending emails advising customers that their annual tax summary for 2016-17

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Two-thirds of UK firms lack post-Brexit VAT strategy

Businesses are failing to prepare for the impact exit from the EU will have on their tax affairs, according to research by BDO, which found that 65% of UK companies lack a formal VAT strategy, leaving many looking for professional help in determining the best approach going forward. The firm’s poll of some 900 businesses across nine countries also revealed

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UK unpaid overtime equates to £32bn

UK workers contributed £31.2bn of free labour last year, completing a total of two billion hours unpaid overtime, according to research by the TUC. Its analysis suggests some 5m workers put in an average of 7.4 extra unpaid hours, missing out on an average of £6,265.  The TUC says that for the average worker, that is equivalent to not being

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Looks like cash is on the way out

Card transactions, driven by our love of contactless, are now outpacing cash ones for the first time. The Bank of England has said we passed ‘cash peak’ sometime last year. Apart from being a seminal moment in the history of finance, there is real concern that the decline in cash transactions could lead to higher costs for smaller retailers as

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HMRC levels the playing field by tackling online VAT fraud

Powers to ensure online sellers pay the right tax, and don’t leave law-abiding high street and online businesses at a disadvantage, came into force on 15 March. These new rules strengthen powers to make online marketplaces accountable for VAT fraud committed by online sellers on their platforms. These powers are known by the term joint-and-several liability (JSL) for online marketplaces.

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Gift Aid Small Donations Scheme: how to claim top-up payments

HMRC have updated their online guidance for charities gift aid small donations scheme to reflect a new address to notify HMRC of a charities merger. Gift Aid Small Donations Scheme: how to claim top-up payments explains how a charity or community amateur sports club (CASC) can claim top-up payments on small donations up to £20. The guide explains that from

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