Welcome to the December 2019 Newsletter from Beatons Group

The review of the controversial Loan Charge has been put on hold until after the upcoming General Election. HMRC has set a January 2020 deadline for settling claims under the Loan Charge, which has sparked concerns that the review will now not be made public in time.

Loan Charge review put on hold

The independent review into the Loan Charge has been put on hold until after December's General Election.

The review was commissioned by Chancellor Sajid Javid in September, and is being led by Sir Amyas Morse, formerly head of the National Audit Office (NAO).

The Loan Charge, which came into effect on 6 April this year, added a 45% non-refundable charge on all loans advanced through disguised remuneration schemes, unless the individual had agreed with HMRC to settle their tax affairs by 5 April. The Charge will affect at least 50,000 people who used loan-based avoidance schemes.

The All-Party Parliamentary Group (APPG) that is looking into the Loan Charge published a survey of more than 2,000 people who face the charge. It found that 40% had seriously considered suicide, while a third have sought medication or counselling.

On 5 November, Jesse Norman, the Financial Secretary to the Treasury, asked Mr Morse to delay the publication of the review. HMRC has set a January 2020 deadline for settling claims under the Loan Charge, prompting concerns that the review will not be made public in time.

In a recent report, MPs in the APPG said: 'The incoming government will not realistically be able to implement its findings before the Loan Charge becomes payable. The 31 January date is therefore now illegitimate and wholly unfair.

'It must be abandoned to allow proper consideration by the next Parliament and by the incoming government of the Loan Charge Review findings.'

The APPG report can be viewed here.

Improved accuracy for VAT returns under MTD, research suggests

Almost a third of company VAT returns are more accurate under Making Tax Digital (MTD), according to research from Thomson Reuters.

The survey of UK accountants and tax professionals found that whilst many businesses have only recently started filing under Making Tax Digital for VAT (MTD for VAT), they are recognising a number of benefits associated with being part of the scheme.

Thomson Reuters also found that of those firms with solutions deployed, only 20% are using bridging software. In addition, 35% of firms are using a complete MTD digital tax reporting software platform, or are in the process of transitioning to one by 2020.

According to the poll, 51% of respondents reported having simplified or more efficient processes and 32% said they now have more accurate VAT returns. Additionally, 19% of businesses said they also have better visibility of their tax liabilities due to MTD.

Commenting on the survey, Steven Smith, Europe Proposition Lead for Corporates at Thomson Reuters, said: 'The build up to MTD for VAT was clearly a worry for many organisations, but what is clear from the survey is that with the right technology, tax and finance departments can reap benefits far beyond simply filing VAT returns electronically.

'Adopting a complete digital tax reporting software platform gives them visibility of indirect tax across the transaction lifecycle and wider organisation. Additionally, the government is looking to maximise technological advances for the efficient collection and verification of transaction information to calculate a wider range of taxes.'

ESSENTIAL TAX DATES FOR DECEMBER

1 December
New Advisory Fuel Rates (AFR) for company car users apply from today.

19 December      
PAYE, Student loan and CIS deductions are due for the month to 5 December 2019.

30 December
Online filing deadline for submitting 2018/19 self assessment return if you require HMRC to collect any underpaid tax by making an adjustment to your 2020/21 tax code.

31 December      
End of CT61 quarterly period.
Filing date for Company Tax Return Form CT600 for period ended 31 December 2018.

QUOTE OF THE MONTH

'Contractors need to establish their status and take the necessary steps to secure their livelihood, while businesses need to make their IR35 strategy crystal clear to their contractors.'

Colin Morley, Professional Services Director at recruitment consultancy firm Harvey Nash, commenting on research which suggests that many businesses would rather dismiss their contractors than have to deal with IR35 changes.

WEBSITE OF THE MONTH

www.oecd.org/unitedkingdom

Keeps individuals up-to-date on the latest economic forecasts.

ON OUR WEBSITE

A wealth of resources for businesses
With topics ranging from fixed rate expenses to choosing your accounting date, the Your Business section of our site is a hub of essential information.

Useful information for individuals
For a comprehensive bank of guides covering the Enterprise Investment Scheme, Individual Savings Accounts and much more, please visit the Your Money area of our website.

Corporation tax cuts put on hold
Next April's planned cut in corporation tax is to be put on hold, Prime Minister Boris Johnson told the Confederation of British Industry (CBI) conference on 18 November.
Click here for the full story

Dividend payments rise for tenth consecutive year
Dividend payments made by the world's biggest companies to their shareholders have grown for the tenth year in a row, according to research from asset management company Janus Henderson.
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Pension scam victims 'could lose 22 years of pension savings in 24 hours'
Pension scam victims could lose 22 years of savings in 24 hours, according to the Pensions Regulator (TPR) and the Financial Conduct Authority (FCA).
Click here for the full story

Off-payroll changes need to be delayed, says FSB
Next year's expansion of the off-payroll rules into the private sector should be delayed, according to the Federation of Small Businesses (FSB).
Click here for the full story

Real Living Wage rise boosts pay for thousands
Over 210,000 UK workers are set to benefit after the Real Living Wage increased to £9.30 an hour.
Click here for the full story