Welcome to the Newsletter from Walsh & Co
The Chartered Institute of Taxation (CIOT) has warned that government plans to expand the rules mandating some taxpayers to declare 'uncertain' tax positions risk generating more uncertainty. It branded the plans 'unworkable' and 'needing further development' before legislation is created.
Expansion of 'uncertain tax treatment' rules cause for concern
Government plans to extend the rules requiring some taxpayers to declare 'uncertain' tax positions risk creating more compliance burdens and tax disputes according to the Chartered Institute of Taxation (CIOT).
The uncertain tax treatment regime currently requires large businesses to flag uncertain interpretations of tax law to HMRC upfront if significant amounts of money are at stake.
The government is proposing to turn it into a much wider transparency regime, reaching beyond large businesses into individuals and trusts, expanding to cover additional taxes and potentially introducing a new, much broader trigger for notification.
The CIOT is warning that the proposed third trigger - where there is more than one 'credible' interpretation and HMRC's view is not known - is too subjective to work effectively in practice.
Lauren Fletcher, Tax Technical Senior Manager at the CIOT, said: 'These proposals would expand the uncertain tax treatment rules to more taxpayers, more taxes and a broader set of uncertainties - a potentially significant compliance expansion. But they are unworkable in their current form and need further development before any legislation is brought forward.
'The government is right to want to reduce the 'legal interpretation' tax gap and give taxpayers more certainty. But these proposals risk doing the opposite regarding certainty. A notification regime should provide clarity, not create a fresh layer of uncertainty around whether a taxpayer is required to notify in the first place.'
IN THE NEWS
Pension saving plummets when employees move into self-employment
More than three-quarters of employees who consistently saved into a pension stop doing so when they move into self-employment, according to research from the Institute for Fiscal Studies (IFS).
Click here for the full story
Employers need to show workforce flexibility for World Cup
Employers are being urged to implement clear policies on staff time off, sickness absence, and flexible working as the World Cup gets underway.
Click here for the full story
HMRC boosts funding for taxpayers needing extra support
More than £11 million in funding has been made available to taxpayers struggling with their tax affairs.
Click here for the full story
Business leaders believe Employment Rights Act will harm growth
Research carried out by the Institute of Directors (IoD) has indicated that 86% of business leaders believe that the Employment Rights Act will adversely affect UK growth.
Click here for the full story
Three quarters of workers not on track for 'moderate' pension income
Three quarters of UK workers are not on course to save enough for a 'moderate' lifestyle when they retire, according to a report by Pensions UK.
Click here for the full story
ESSENTIAL TAX DATES FOR JULY
5 July
Deadline for applying for a PAYE Settlement Agreement for 2025/26.
6 July
Deadline for forms P11D and P11D(b) for 2025/26 to be submitted to HMRC and copies to be issued to employees concerned.
Deadline for employers to report share incentives for 2025/26.
14 July
Due date for Income Tax for the CT61 period to 30 June 2026.
19 July
Class 1A NICs due for 2025/26.
PAYE, Student loan and CIS deductions due for the month to 5 July 2026.
PAYE quarterly payments are due for small employers for the pay periods 6 April 2026 to 5 July 2026.
31 July
Second payment on account 2025/26 due.
QUOTE OF THE MONTH
'We're building on the success of our expert debt services to help tens of thousands more get back on their feet.'
Rachel Blake, Economic Secretary to the Treasury, commenting on an announcement from the Treasury regarding extra funding to boost debt advice services for small businesses.
ON OUR WEBSITE
A wealth of resources for businesses
With topics ranging from the Bribery Act 2010 to the National Minimum Wage and the National Living Wage, the Your Business section of our site is a hub of essential information.
Useful information for individuals
For a comprehensive bank of guides covering Venture Capital Trusts, the dividend nil-rate and much more, please visit the Your Money area of our website.