Category Archives: News

Time to tighten the belt ?

Later this week (27 October 2021) Rishi Sunak will present his second budget during 2021.

It is likely that reduced public expenditure and higher taxation will be features of this budget as the Treasury seeks to limit any further rise in government borrowings. The Chancellor will also have in mind increases in inflation and the growing possibility that interest rates may need to increase next year.

More recently, global trading has been hit by a series of additional issues (Brexit for example) that have conspired to delay supply chains. Witness the recent petrol shortages and gaps on supermarket shelves.

Further, it seems clear that sectors of our economy that have benefitted from the free movement of labour from...

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New global tax system

To tax multinational companies on business transactions completed in the UK, our government introduced the Digital Services Tax (DST) April 2020.

The US response was to threaten to levy tariffs. However, a compromise has been reached that will see the introduction of a global system that will ensure multinationals do pay their fair share of tax in the countries where they do business.

This new global system will be introduced in 2023.

On 8 October 2021, OECD-led discussions resulted in 136 countries agreeing a plan for a new system (known as Pillar One), whilst countries will also operate a minimum 15% corporation tax rate (known as Pillar Two).

As part of this agreement the US will not levy tariffs...

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Time to let your hair down.

We are all due a little rest and recuperation. The last eighteen months have been challenging and stressful. If, big if, COVID infection is contained this winter, perhaps we could start to consider celebrating with and family and friends during the Christmas break.

And why not fund a “business” related event that will have the support of the taxman?

If you are careful with your budgeting, you can enjoy a staff party without increasing your tax or National Insurance payments. Here’s what you need to consider:

What's exempt?

You might not have to report anything to HMRC or pay tax and National Insurance. To be exempt, the party or similar social function must meet all the following criteria:

  • The cost...
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What is cabotage?

Although it sounds like a culinary dish – a cabbage compote (?) – cabotage is defined as the transport of goods or passengers between two places in the same country by a transport operator from another country.

Its present relevance is a rule that restricts hauliers from the EU who can only make two cabotage trips within seven days.

In an announcement by the Department of Transport issued 14th October, there is a proposal to extend cabotage to foreign transport operators that would allow them to make unlimited journeys for two weeks before returning home.

Could it be yet another attempt to ease the present supply issues?

The announcement goes on to say:

“Thousands more HGV deliveries could be made...

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