Tax Systems Share Discussion Threads

[florenceorbis] 22/4/2019 09:58

Tax to Save The Environment: a land value tax with a woodland twist

Posted on April 22 2019

I am aware that not all who have commented here are convinced that tax can be used to save the environment, as I have been suggesting over the last few days.

In part I accept those critics’ point: by itself tax cannot save the environment. But then, by itself very little can. What is required to save the environment are radical changes to the way that we live. And in my opinion tax both signals what those desirable changes are, and reinforces them.

Raising revenue is not the issue: the aim of these taxes is to change the behaviour that they address. The desired revenue is then precisely nothing: that would be the sign that they had worked. This is how taxes of this sort should work. And precisely because I do think that they can work, even if imperfectly (just like almost everything else we humans have ever come up with) I will be suggesting more such taxes.

Another one that we very obviously need is a variant on a land value tax. Recent reports in the Guardian have shown how skewed the ownership of the UK is. Just 5% of land is used for housing. Of the rest a very large part is owned by the old aristocracy or newly concentrated capital. And we know land use is a big issue in climate change. I am convinced by the evidence that some forms of farming - most especially of cattle and sheep - is harmful. I am equally persuaded we need many more trees.

The obvious need is, then, for a land value tax on all land, excepting maybe housing where other options exist. And the tax due should be determined by the use of the land. I am not suggesting for a moment I have worked out all the details of such a tax. But I am confident enough to suggest that the rate should be positive unless the land is wooded.

And what should the proceeds be used for? I would suggest for protecting the land for use. We are going to suffer increased flooding in the UK. In East Anglia vast areas, as far inland as Bedford, unless the Wash is dammed as a flood protection measure sometime soon. The need for action is urgent. And a tax could assist that process of change.

[grupo guitarlumber] 09/4/2019 10:31

Non-resident UK property owners warned of tax change
02 April 2019

With effect from 6 April 2019 non-UK residents must pay tax on all UK land disposals – both residential and commercial – see FA 2019, s 13 and s 14. They must file a non-resident capital gains tax return and pay any tax due within 30 days of the sale.

Jon Stride, co-chair of the ATT’s technical steering group, said: ‘Any non-UK resident who owns an interest in UK land or property needs to be aware of these changes. In particular, those looking to sell need to be aware that they will have to file a non-resident capital gains tax return with HMRC and pay any tax due, in a very short time frame.’

He added that for disposals of commercial property and indirect disposals, only an increase in value after 6 April 2019 will be liable so any tax due on such disposals is likely to be minimal. But even if there is no tax due, or a property is sold at a loss, the taxpayer has to file a non-resident capital gains tax return within 30 days.

Mr Stride conclu ‘Non-residents who hold UK commercial land or property should consider getting their property valued as at 6 April 2019 whether or not they anticipate a future sale. In the event of such a sale, the value at that date would be used to calculate the taxable gain.’
Finance Act 2019: tinyurl.com/GOV-FA2019...

Only subscribers may read the full article

[grupo guitarlumber] 06/4/2019 09:19

HMRC tax agents blog: UK self-employed workers in the EU, EEA or Switzerland post Brexit

Released 4 April 2019

HMRC have published a tax agents blog explaining changes for UK self-employed workers working in the EU, the EEA or Switzerland following no deal Brexit.

In the event the UK leaves the EU without a deal, there may be changes for UK self-employed workers working in the EU, the European Economic Area (EEA) or Switzerland. Currently the EU Social Security Coordination Regulations ensure workers only need to pay social security contributions (such as National Insurance contributions in the UK) in one country at a time. However, if the UK leaves without a deal, the coordination between the UK and the EU may end. This will mean social security contributions may need to be made in both the UK and the EU, the EEA or Switzerland at the same time.

For more information, see Changes for UK self-employed workers working in the EU, the EEA or Switzerland in a no deal situation.

[ariane] 04/4/2019 07:22

Half a million pensioners caught by ‘unnecessary tax’

Around half a million people working past state pension age could be paying unnecessary tax on their state pension payments, according to analysis from Royal London

4 Apr 2019
Pat Sweet
Pat Sweet

Reporter, Accountancy Daily, published by Croner-i Ltd
View profile and articles.

The mutual insurer says this additional tax burden occurs because people who stay in work past state retirement age have failed to take up the option of deferring their state pension until they stop work.

As a result, the whole of their state pension is being taxed, in some cases at 40%. If they defer taking their state pension they will get a higher pension when they do retire, and their personal tax allowance will then cover all or most of their state pension, dramatically reducing the amount of tax they have to pay on their pension.

Royal London says in 2017 there were around 1.1m people in the workforce aged 65 or over; of these, roughly 950,000 were combining paid work with drawing a state pension.

Out of this 950,000, more than half (around 520,000) were earning enough to take them over the tax threshold; this meant that the whole of their state pension was taxed.

Those who defer their state pension can get an extra 5.8% per year on their pension for the rest of their life for each year that they defer.

Comparing someone who draws their state pension immediately whilst going on working , with someone who waits for a year until they have retired before drawing their state pension, the research found a man who defers for a year and has an average life expectancy at 65 of 86 will be around £3,000 better off over retirement than someone who takes his state pension immediately and pays more tax.

A woman who defers for a year and has an average life expectancy at 65 of 88 will be around £4,000 better off; as well as the tax advantage, she also enjoys two extra years of pension at the higher rate.

Royal London says all is not lost for those who have started to draw their state pension as they have the option of ‘un-retiring’ – they can tell the Department for Work and Pensions to stop paying their state pension and then resume receiving it at a higher rate when they stop work.

The insurer is calling on the government to make people more aware of the option of deferring their state pension, especially those who are working past state pension age.

Steve Webb, director of policy at Royal London said: ‘There has been a huge increase in the number of people working past the age of 65, and this research finds that most of these people are claiming their state pension as soon as it is available.

‘For around half a million workers, this means every penny of their state pension is being taxed, in some cases at the higher rate.

‘Those who have worked hard to build up a state pension through their working life do not want to see a big chunk of it disappear in unnecessary taxation.

‘The government should be doing more to alert this group to the option of deferring, as current publicity is clearly not working.’

Report by Pat Sweet

[waldron] 18/3/2019 16:42

HMRC targets accountants over tax evading clients

HMRC sent over 1,400 production orders to accountants, lawyers and other professional services firms last year demanding information on clients that it wants to investigate for suspected tax evasion

18 Mar 2019
Sara White
Sara White

Editor, Accountancy magazine and Accountancy Daily, published by Croner-i Ltd
View profile and articles.

The production orders are issued by HMRC’s Criminal Investigation Directorate to force third parties, such as professional services firms, to provide it with potentially incriminating information about their clients’ tax affairs.

They are the starting point for HMRC to kick off an investigation and any evidence obtained can lead to a criminal prosecution.

The volume of demands, highlighted by law firm RPC, shows that HMRC is increasingly starting criminal investigations against taxpayers who have participated in tax planning arrangements designed to reduce their tax liability.

These tax schemes include employee benefit trusts (EBTs) and film finance investments. Last week, HMRC issued a warning that loan charge schemes currently being promoted via offshore providers were not acceptable tax compliance vehicles.

In the past, HMRC tended to challenge such arrangements by the civil route, through the tax tribunals, according to RPC. However, it is now increasingly launching criminal investigations into such arrangements.

If firms do not comply with a production order this can lead to criminal sanctions, but likewise if they provide too much information they could face a legal claim from their client.

The issue has become even more critical as HMRC ramps up its powers under the Criminal Finances Act 2017, particularly as the worldwide disclosure settlement opportunity closed for new registrations last September.

Adam Craggs, partner at RPC, said: ‘When HMRC applies to the court for a production order it is important that the intended recipient obtains expert legal advice as soon as possible and makes appropriate representations to the court. This can lead to the court rejecting HMRC's application.

‘HMRC's policy of commencing criminal investigations into taxpayers who have participated in tax planning arrangements is concerning.

‘The mere commencement of a criminal investigation can create serious practical difficulties for taxpayers and their businesses such as, for example, lenders calling in loans. Such commercial damage can be irreparable for a small to medium sized enterprise.

‘In addition, HMRC criminal investigations normally take several years to complete and although they frequently do not lead to a subsequent criminal prosecution, taxpayers are subjected to a great deal of stress and uncertainty whilst they await the conclusion of the criminal investigation.”;

‘It is of little comfort to a taxpayer to be informed that after several years of investigation, often at great personal and emotional cost for the taxpayer concerned, HMRC have decided not to pursue criminal proceedings.’

Report by Sara White

[grupo guitarlumber] 17/2/2019 08:57

The Sunday Times: Britain’s richest man and the prominent Brexiteer Sir Jim Ratcliffe has been planning to avoid up to £4 billion in tax after switching his home and his fortune to Monaco.

[grupo] 14/2/2019 17:40

COUNCIL TAX RISES TO HELP FUND SERVICES AFFECTED BY CUTS
web_tax_iStock-825288366
Services for vulnerable people are facing cuts © iStock

State of Local Government Finance Survey 2019

Leisure centres could be forced to close without government spending

Most English councils are failing to make savings

Page tools
Print this page

14 February 2019 | Herpreet Kaur Grewal

Nearly all councils plan to raise council tax this year and increasing charges to make up for cuts in central government funding, according to a survey by a local government think tank.



The 2019 State of Local Government Finance Survey (PDF document) has found that more than half (53 per cent) of councils are eating into their reserves to stay afloat, says the Local Government Information Unit.



Four out of five (81 per cent) are investing in commercial developments while nearly half were planning on cuts to services. Eight in 10 senior council decision-makers believe the current system for council funding is unsustainable.



A quarter of councils said the public would notice planned cuts to services in the coming year. Worryingly, the financial situation is so bad for one in 20 councils (22 councils in England) that they are concerned that they won’t be able to deliver the legal minimum service for residents.



Local authorities have already seen their central funding reduced by 40 per cent on average. Respondents to the survey admitted that they would be further reducing activity in arts and culture (46 per cent), parks and leisure activities (45 per cent), roads (38 per cent), libraries (32 per cent) waste collection (22 per cent) and recycling (11 per cent).



Chief executive of the LGiU, Jonathan Carr-West, said: “With more cuts ahead, local councils have no option but to take drastic measures to make ends meet. In the future care for the elderly and vulnerable children could be funded from shopping centre investments and car parks, which carries significant risk if the economy tanks.



“Now more than ever do we need a thriving, resilient local government sector to weather the storm of national uncertainty, but years of chronic underfunding has left local government on life support.”



Children’s services and education is councils’ top immediate financial pressure for the second year running (36 per cent of councils), ahead of adult social care (23 per cent), which has historically ranked highest. However, adult social care is still under severe strain, being named as the top long-term financial pressure (37 per cent of councils).



Gang activity, including county lines operations, was identified as a top pressure on children’s services by one in 20 upper-tier councils (6 per cent placed in their top three), all of which were located in the South East, London, and the Midlands.



Services for vulnerable people are also facing cuts, with councils planning to reduce activity in adult social care (29 per cent), children’s care services (24 per cent), special education and disability support.

[grupo] 14/2/2019 17:39

COUNCIL TAX RISES TO HELP FUND SERVICES AFFECTED BY CUTS
web_tax_iStock-825288366
Services for vulnerable people are facing cuts © iStock

State of Local Government Finance Survey 2019

Leisure centres could be forced to close without government spending

Most English councils are failing to make savings

Page tools
Print this page

14 February 2019 | Herpreet Kaur Grewal

Nearly all councils plan to raise council tax this year and increasing charges to make up for cuts in central government funding, according to a survey by a local government think tank.



The 2019 State of Local Government Finance Survey (PDF document) has found that more than half (53 per cent) of councils are eating into their reserves to stay afloat, says the Local Government Information Unit.



Four out of five (81 per cent) are investing in commercial developments while nearly half were planning on cuts to services. Eight in 10 senior council decision-makers believe the current system for council funding is unsustainable.



A quarter of councils said the public would notice planned cuts to services in the coming year. Worryingly, the financial situation is so bad for one in 20 councils (22 councils in England) that they are concerned that they won’t be able to deliver the legal minimum service for residents.



Local authorities have already seen their central funding reduced by 40 per cent on average. Respondents to the survey admitted that they would be further reducing activity in arts and culture (46 per cent), parks and leisure activities (45 per cent), roads (38 per cent), libraries (32 per cent) waste collection (22 per cent) and recycling (11 per cent).



Chief executive of the LGiU, Jonathan Carr-West, said: “With more cuts ahead, local councils have no option but to take drastic measures to make ends meet. In the future care for the elderly and vulnerable children could be funded from shopping centre investments and car parks, which carries significant risk if the economy tanks.



“Now more than ever do we need a thriving, resilient local government sector to weather the storm of national uncertainty, but years of chronic underfunding has left local government on life support.”



Children’s services and education is councils’ top immediate financial pressure for the second year running (36 per cent of councils), ahead of adult social care (23 per cent), which has historically ranked highest. However, adult social care is still under severe strain, being named as the top long-term financial pressure (37 per cent of councils).



Gang activity, including county lines operations, was identified as a top pressure on children’s services by one in 20 upper-tier councils (6 per cent placed in their top three), all of which were located in the South East, London, and the Midlands.



Services for vulnerable people are also facing cuts, with councils planning to reduce activity in adult social care (29 per cent), children’s care services (24 per cent), special education and disability support.

[la forge] 14/2/2019 09:19

‘Nearly all’ English authorities plan to raise council tax
By:
Dominic Brady
14 Feb 19

The majority - 97% - of councils in England plan to raise council tax in 2019-20, a survey has found.

Of those looking to put up their council tax, three quarters will increase it by more than 2.5%, according to analysis by the Local Government Information Unit think-tank.

Raising council tax by more than 3% requires local authorities to hold a referendum on the decision.

As councils face ongoing financial difficulty, 53% plan to dip into their reserves this year and 40% plan to do so two years running, according to the survey released today.

A further 80% of councils said they are not confident in the sustainability of local government finance, the LGiU found.

Recent analysis by CIPFA found that up to 15% of councils in England are at risk of financial instability.

Respondents to the LGiU survey expressed concern over their ability to deliver statutory services, with one in 20 (22 councils in England) suggesting they may not be able to deliver the legal minimum services for residents.

Jonathan Carr-West, chief executive of the LGiU, said: “With more cuts ahead, local councils have no option but to take drastic measures to make ends meet.

“In future, care for the elderly and vulnerable children could be funded from shopping centre investments and car parks, which carries significant risk if the economy tanks.

“Now more than ever we need a thriving, resilient local government sector to weather the storm of national uncertainty, but years of chronic under-funding has left local government on life support.”

The survey, which received responses from 158 out of the 353 councils in England contacted, found that 36% of councils said children’s services and education were the top immediate financial pressure. Adult social care is the top long-term financial pressure, according to 37% of councils.

Despite this, 29% of local authorities surveyed planned to reduce activity in adult social care and 24% said they would cut children’s care services.

Non-statutory services will also be cut, the survey found, including libraries (32% of councils), arts and culture (46%), parks and leisure (45%), waste collection (22%), recycling (11%) and roads (38%).

Richard Watts, chair of the Local Government Association’s resources board, said: “This survey illustrates the severity of the challenge facing councils with government grant funding at the lowest it has been for decades at the same time as demand for services, such as adult social care, children’s services and homelessness support, has grown.”

The survey, which was conducted in association with The Municipal Journal, found that gang activity was the main reason for pressure on children’s services in one in 20 upper-tier councils.



The Ministry for Housing, Communities and Local Government has been contacted for comment.

In this year’s local government finance settlement, James Brokenshire gave Northamptonshire the ability to increase its council tax by 4.99%.

The Public Accounts Committee recently warned that the UK government is “in denial” about the sustainability of local government finance.

Dominic Brady

PF reporter

[la forge] 14/2/2019 09:18

‘Nearly all’ English authorities plan to raise council tax
By:
Dominic Brady
14 Feb 19

The majority - 97% - of councils in England plan to raise council tax in 2019-20, a survey has found.

Of those looking to put up their council tax, three quarters will increase it by more than 2.5%, according to analysis by the Local Government Information Unit think-tank.

Raising council tax by more than 3% requires local authorities to hold a referendum on the decision.

As councils face ongoing financial difficulty, 53% plan to dip into their reserves this year and 40% plan to do so two years running, according to the survey released today.

A further 80% of councils said they are not confident in the sustainability of local government finance, the LGiU found.

Recent analysis by CIPFA found that up to 15% of councils in England are at risk of financial instability.

Respondents to the LGiU survey expressed concern over their ability to deliver statutory services, with one in 20 (22 councils in England) suggesting they may not be able to deliver the legal minimum services for residents.

Jonathan Carr-West, chief executive of the LGiU, said: “With more cuts ahead, local councils have no option but to take drastic measures to make ends meet.

“In future, care for the elderly and vulnerable children could be funded from shopping centre investments and car parks, which carries significant risk if the economy tanks.

“Now more than ever we need a thriving, resilient local government sector to weather the storm of national uncertainty, but years of chronic under-funding has left local government on life support.”

The survey, which received responses from 158 out of the 353 councils in England contacted, found that 36% of councils said children’s services and education were the top immediate financial pressure. Adult social care is the top long-term financial pressure, according to 37% of councils.

Despite this, 29% of local authorities surveyed planned to reduce activity in adult social care and 24% said they would cut children’s care services.

Non-statutory services will also be cut, the survey found, including libraries (32% of councils), arts and culture (46%), parks and leisure (45%), waste collection (22%), recycling (11%) and roads (38%).

Richard Watts, chair of the Local Government Association’s resources board, said: “This survey illustrates the severity of the challenge facing councils with government grant funding at the lowest it has been for decades at the same time as demand for services, such as adult social care, children’s services and homelessness support, has grown.”

The survey, which was conducted in association with The Municipal Journal, found that gang activity was the main reason for pressure on children’s services in one in 20 upper-tier councils.



The Ministry for Housing, Communities and Local Government has been contacted for comment.

In this year’s local government finance settlement, James Brokenshire gave Northamptonshire the ability to increase its council tax by 4.99%.

The Public Accounts Committee recently warned that the UK government is “in denial” about the sustainability of local government finance.

Dominic Brady

PF reporter