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Tax Changes Ahead
Introduction »
OTHER MATTERS
HMRC powers – Security for PAYE and NICs
Legislation in Finance Bill 2011 will introduce a power to allow HMRC to make regulations enabling them to require a security from employers for PAYE that is seriously at risk. The measure will also introduce a criminal offence for non-payment of a security. Once the new power is in place HMRC will use existing powers to make equivalent provision in respect of NICs.
Comment
A facility to require a security exists for most of the indirect taxes, but it is most commonly used for VAT. The most common form of security is a cash deposit held by HMRC or paid into a joint HMRC/taxpayer interest bearing banking facility.
VAT on business samples
Legislation will be introduced in Finance Bill 2011 to ensure that where businesses provide samples of their products free of charge to individuals for marketing purposes, none of the samples are liable to VAT. The existing policy limits relief to the first sample.
Anti-avoidance - VAT
Legislation will be introduced in Finance Bill 2011 to withdraw the zero-rating from printed matter where it is ancillary to a differently rated service. This change will apply where, if the service and printed matter had been supplied by a single business, the two supplies would have been treated as a single standard rated, reduced rated or exempt supply.
Anti-avoidance - IHT
The government has confirmed that IHT on transfers of property into trusts will be brought within the disclosure of tax schemes regime.
Introduction »
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