Heather Self, tax partner at Blick Rothenberg, noted that Amazon UK Services is a highturnover business raking in nearly £2 billion in turnover in 2017 with low margins, and that the actual sales of goods are reported through Amazon EU Sarl, which files its accounts in Luxembourg. While that company has a U.K. branch and likely pays some U.K. tax, it’s not possible to calculate exact numbers from the Luxembourg accounts, according to Self.
Self also pointed out that share-based payments allow employees to profit when the value of shares increases a common practice among tech companies. 'There is nothing ‘dodgy’ about getting a tax deduction for the costs of giving your employees shares,' she said.
Source: Worldwide Tax Daily
Rebecca Goldring, a manager at Blick Rothenberg said, “As expected, the burden of IHT lies largely in the south of England with London and the South East being the highest paying areas. With the surge in property prices in the last decade, particularly in those regions, the increase in collections was predictable and I envisage further rises in the years to come.'
She added, 'IHT was once a tax that only the rich and super rich actually paid and was not a concern for the majority. In reality though, largely owing to housing price increases, we now expect that in the years to come the middle and working class families may also have to pay the tax.'
Source: FP Today
Nimesh Shah, partner at Blick Rothenberg, said 'The higher average may suggest that the prices of properties which benefit from the exemption were increased by sellers and property developers, and essentially, the benefit of the exemption was absorbed through higher prices being achieved at this level.'
Source: Financial Times
Many self-employed individuals are also likely to resist the proposals since they “currently enjoy the cash-flow advantage of paying their tax at year-end,” Lee Hamilton, a partner at Blick Rothenberg said.
Paul Haywood-Schiefer, a manager at Blick Rothenberg, said, 'Non-doms and the tax they pay play an important role in this country’s finances. The regime is seen by many as outdated, but along with initiatives like business investment relief, provides the UK with a great opportunity for inward investment, especially as many non-doms are flexible when it comes to where they live.'
Source: Financial Times
Yadvinder Rihal, employment taxes manager at Blick Rothenberg, explains, ‘When a student is employed over the holiday period – even though they are in fulltime education – there are now no special procedures. Employers must treat them in exactly the same way as any other employee, including their eligibility for pensions auto-enrolment.’
Yadvinder added, 'With the introduction of real-time tax reporting this old system was abolished. It means if you have a job when you're a student you have to pay income tax if you earn more than £987 a month on average – this is your personal allowance – and national insurance if you earn more than £162 a week. Your employer will deduct income tax and national insurance from your wages through Pay As You Earn.'
Source: The Guardian
Due to a toxic combination of rising house prices, the squeeze on wages, high rents, stricter affordability tests for mortgages and higher deposits, the ‘Bank of Mum and Dad' has become more important than ever to help first time buyers get a foot on the property ladder’, said Denise Yau a tax manager at the firm.
Denise added: ‘In fact, some reports indicate that nearly three in five under 35s now need assistance from their parents. But this lifeline can come at a price.’
Source: Lawyer Monthly
Fiona Fernie, a partner at the accountancy firm Blick Rothenberg, says, 'HMRC is using its system more than ever. It enables it to compare information from different sources to check whether income and gains have been reported on tax returns.'
Source: The Times
'The proposal is greatly welcomed and looks to protect the interests of entrepreneurs and founders of businesses, and further enhances this valuable relief in the UK's personal tax regime,' said Nimesh Shah, partner at BlicK Rothenberg.
Source: CCH Daily
Frank Nash, partner at Blick Rothenberg said, ‘You should tread carefully before transferring any shares in a private company.’
Source: Investors Chronicle