The UK is becoming an
increasingly expensive place to live and work. With changes such as:
- ·
A new 50%
rate of income tax becoming effective from 6 April 2010
- ·
Restrictions
to both the personal allowance and pension relief
- ·
Increases
in taxation of company cars
- ·
The new UK
tax rules on residence and domicile
- ·
Implementation
of the new Companies Act
As a result of these changes many
high net worth individuals and companies are leaving the UK. One of the most high profile companies
being McDonald’s who, after 25 years in the UK, have relocated their European
headquarters to Switzerland.
So what does that mean to the rest
of us who are left behind? Well,
like any business in this economic downturn, the Government has two options;
they must reduce spending and raise revenues. This September they announced a review of public spending
with a view to cutting costs. To
raise revenues, initiatives have been implemented to ensure that no stone is left
unturned in collecting tax.
As a result, as is so often the
case, it’s the small businesses and hardworking employees that are the focus of
their attention. In particular HM
Revenue & Customs (HMRC) have issued a document entitled “False Self
Employment” which serves to further challenge the status of the self-employed
person in the construction industry.
The objective being to reclassify more individuals as employees and thus
making them ineligible to claim the usual business expenses and create an
additional national insurance liability for the deemed employer.
HMRC have also revisited their voluntary disclosure scheme for UK
residents that may have undeclared overseas bank accounts. The new scheme is called the New
Disclosure Opportunity and taxpayers have until 30 November 2009 to notify HMRC
that they wish to make a voluntary disclosure. The banks have already provided HMRC with details of
individuals with overseas accounts.
So, if you have an overseas account that has not been disclosed, it is
important that you call HMRC before they call you!
Finally, changes to HMRC powers and a new penalty regime make it
essential that taxpayers review their affairs on a regular basis, consider any
tax saving opportunities and are compliant with all aspects of business and
personal tax.
Martin Macario
You can contact Macario Lewin by:
info@macariolewin.com
Swansea 01792 473992
Chepstow 01291 621588
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