Welcome to the July 2019 Newsletter from Beatons Group

HMRC has launched a new consultation on the 'operation of Insurance Premium Tax' (IPT). The consultation aims to review how the scheme can be 'modernised' in order for it to become 'more efficient' for both businesses and HMRC.

HMRC launches consultation on the operation of Insurance Premium Tax

HMRC has launched a new consultation on how the administration and collection of Insurance Premium Tax (IPT) can be 'modernised' in order to provide 'optimal efficiency for both business and HMRC'.

In its consultation document, HMRC stated that, over the past 25 years, a number of changes have been made to IPT to ensure it 'keeps pace with industry developments', continues to operate fairly and removes opportunities for avoidance and evasion.

The consultation aims to review the extent to which there are emerging practices leading to 'unfair tax outcomes'. HMRC has stressed that the consultation focuses on the operation of IPT, and does not, therefore, consider the current rates of IPT nor the current exemptions to IPT.

HMRC's consultation document states: 'We have been made aware of business practices involving administration and arrangement fees which may be leading to unfair tax outcomes in the insurance industry. This involves the artificial manipulation of insurance and broker structures to create different tax outcomes. IPT is chargeable on the gross premiums, whereas fees are not subject to IPT or VAT.'

HMRC proposes extending the scope of IPT to include administration fees, in order to 'align their treatment with commission'.

The consultation document can be viewed here. The closing date for comments is 17 July 2019.

DIT launches online tool for international investors

The Department for International Trade (DIT) has launched an online tool to help potential international investors set up and expand their operations in the UK.

The new tool, termed the UK Investment Support Directory, enables international investors to connect with a range of businesses across the UK. The directory allows potential investors to find an expert in their specific industry or region. They are also able to source the business and language expertise they require.

The DIT hopes that the new tool will help to support foreign investment by streamlining connections between UK businesses and investors based overseas.

Experts listed in the directory include those in the accountancy, law, consultancy and recruitment industries, amongst many others. Once selected, businesses will offer a free one-hour consultation to discuss the potential investor's needs.

According to the DIT, the UK Investment Support Directory has been created to make information about the investment process 'more accessible', and is part of a wider initiative to 'generate more foreign direct investment in the UK'.

Graham Stuart, Minister for Investment, said: 'The launch of the new UK Investment Support Directory is one of many ways in which the DIT is helping to drive investment to every corner of the UK. We hope this new directory will be an invaluable resource for investors thinking of setting up operations in the UK.'

The directory can be found here: https://www.great.gov.uk/investment-support-directory/.

ESSENTIAL TAX DATES FOR JULY

5 July
Deadline for reaching a PAYE Settlement Agreement for 2018/19.

6 July
Deadline for forms P11D and P11D(b) for 2018/19 to be submitted to HMRC and copies to be issued to employees concerned.
Deadline for employers to report share incentives for 2018/19.

14 July
Due date for income tax for the CT61 period to 30 June 2019.

19 July
Class 1A NICs due for 2018/19.
PAYE, Student loan and CIS deductions due for the month to 5 July 2019.
PAYE quarterly payments are due for small employers for the pay periods 6 April 2019 to 5 July 2019.

31 July
Second payment on account 2018/19 due.

QUOTE OF THE MONTH

'The same pick 'n' mix approach people now take when it comes to music, television or the news is expanding into payments, as consumers take advantage of new technologies to pay in a way that suits them.'

WEBSITE OF THE MONTH

www.britishchambers.org.uk/page/business-brexit-checklist

Handy tool for firms to utilise ahead of the UK's departure from the EU.

ON OUR WEBSITE

A wealth of resources for businesses
With topics ranging from PAYE to national insurance, 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.

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