Watson Buckle Blog
‘Tough but fair’ measures unveiled by Chancellor
This month’s Emergency Budget, the first under the Conservative-Liberal Democrat coalition just six weeks after the General Election, was described as ‘tough but fair’ by its author, Chancellor George Osborne, as he unveiled the biggest package of spending cuts and tax increases in a generation.
The Emergency Budget – what’s it likely to bring?
It seemed barely five minutes since the previous Chancellor, Alistair Darling, had announced his Budget for 2010 when his Tory successor, George Osborne, stepped in to say he was holding another one on June 22nd – exactly six weeks after the new coalition government took office.
Buying a ‘distressed’ business
While there is some evidence out there to suggest the worst of the recession may be over, the outlook is still uncertain for many firms and, unfortunately, we are likely to continue to see business failures.
Prepare for budget overload
With the government set to deliver its 2010 budget on 24 March, ahead of an expected May general election, businesses and individuals alike may find it more difficult than usual to analyse what any changes will mean for them.
HMRC targets medical professionals – others may follow
We have all become accustomed to HM Revenue and Customs’ never-ending round of crackdowns and amnesties, designed to catch people it believes may be avoiding paying tax.
The ‘cash or car’ dilemma
Changes to the tax laws over recent years have lessened the appeal of company cars, which were previously a standard perk for most executives and middle managers, and as the next tax year approaches, many companies and individuals may again be looking at whether continuing with such schemes are the best way forward.
The benefits of salary exchange
As businesses battle through the current economic downturn, ‘win-win’ situations are increasingly hard to find. But salary exchange could fall into such a category, allowing firms to increase the benefits they pay to staff, while at the same time reducing costs.
Transfer pricing issues
Transfer pricing - the pricing of assets, services and funds transferred within an organisation - is a constant source of worry for the financial authorities who fear the prices set may not reflect the true costs within the company, and may instead be used to minimise tax, for example by using artificially high transfer prices to shift profits from a high-tax to a lower-tax country.
Conservative Inheritance Tax Policy
With a general election possible at any time, and certainly due within less than a year, one area where a change of government could make a difference is in the field of inheritance tax (IHT).
Filing tax returns online to be made compulsory
Over the next few years, the government will be changing the way business owners have to manage and pay some taxes, and making it compulsory to file certain returns and forms online.
Tax intermediaries' role recognised
Bring out the flags and bunting! Last year's OECD report on tax intermediaries gave us a very welcome thumbs up, concluding - no surprise to us - that we play a vital role in helping taxpayers to understand and meet their tax obligations.
Loan rules are to change for connected companies
John Kinsella, tax partner talks about how HMRC is introducing new corporate tax legislation that alters the loan relationships rules affecting connected companies.
Basic-rate bailout is botched
In an effort to appease disquiet among basic-rate taxpayers, the Chancellor launched a new super income tax that could see some of the UK’s wealthiest individuals forfeit up to 60p in the pound. Essentially, it is a re-hash of the 60 per cent levy.
HMRC gets tough on tax returns
In an apparent push to reward those who complete their tax returns correctly and discourage those whose errors put them at an unfair advantage, HMRC is upping its enforcement of existing rules and introducing new ones.