U.K. Corporate tax 2017
Starting April 1, 2017 the U.K. corporate income tax rate will be reduced to 19% compared to the current 20% rate.
U.K. Corporate Income Tax
The British chancellor George Osborne announced in an interview to the financial times on July 4 that Britain will reduce the corporate income tax rate to below 15% compared to the current 20% rate.
The cut is aimed to encourage companies to operate in the U.K.
The new 15% rate would be the lowest rate in major economies.
U.K. Zambia Tax Treaty
The double tax treaty, DTA, which was signed in 2014 entered into force on July 20, 2015 applying from January 1, 2016.
The tax withholding rates according to the DTA are 5%/15% for dividends, 10% for interest and 5% for royalties.
U.K. Corporate Income Taxes
Starting April 1, 2015 the main corporate income tax rate is reduced from 21% to 20%.
In addition a new DPT, diverted profit tax of 25% is imposed on large multinational companies trying to shift their profits offshore.
U.K. V.A.T. on Digital Services
The HMRC announced that starting October 20, 2014 suppliers of digital services to EU countries will be able to register to a new V.A.T. online service, MOSS, Mini One Stop Shop,.
The digital services generally relate to broadcasting, telecommunications and e-services.
After registration the suppliers will have to submit and pay a quarterly V.A.T report in the U.K. where the HMRC will send the payment and information to the relevant member states V.A.T. authorities.
UK 2014 Budget
The UK budget was delivered by the chancellor of the exchequer on March 19, 2014 .The budget aims to promote further growth of the British economy including, inter-alia, lowering of the corporate income tax rate to 21% starting April 1, 2014.
The tax rate will be lowered to 20% starting April 1, 2015.
U.K. New Minimum Wage Rates
Stating October 1, 2013 the new minimum wage rate for employees aged under 18 is increased to GBP 3.72 per hour.
Employees aged between 18-20 get a 5p rise to GBP 5.03 per hour .Those aged 21 and over get a rise of 12p to GBP 6.31 per hour.
The employment relations minister warned that employers' names failing to pay the new minimum rates will be published and exposed to the public damaging their reputation.
U.K. Netherlands Tax Treaties
The UK and the Netherlands signed on June 12, 2013 two tax treaties. The first treaty is a protocol updating the existing 2008 double tax agreement, DTA, between the two countries.
The second agreement relates to bank taxes between the countries.
The agreements were signed by David Gauke MP, Exchequer Secretary to the treasury and Frans Weekers, state secretary of finance of the Netherlands.
The texts of both tax agreements is available on the HM Revenue& Customs website and will be published by the Stationery Office once they are presented to the parliament for approval.
Both tax treaties will enter into force after being ratified by the UK and the Netherlands.
In general double tax treaties between countries are expected to boost investments by both countries and simplify related tax issues.
U.K. Personal Income Tax Rates 2013- 14
The U.K. HMRC released new rates and thresholds for employers in the tax year 2013- 14 applying from April 6, 2013 to April 5, 2014.
To read the update please visit www.hmrc.gov.uk
U.K. New 24% Corporate Income Tax Rate
Starting April 1 2012 the new corporate income tax rate in the U.K. is 24% reduced from the previous 26% rate. The corporate income tax rate would be further reduced to 23% starting April 1 2013.
U.K. Online VAT Filing
According to HMRC starting April 1 2012 all businesses, apart from a very small number will have to submit the VAT returns online and pay any VAT due electronically.
Most of the businesses have been required to do so since April 2010. The new guideline extends the requirement even to previous registered VAT payers who had an annual turnover exceeding GBP 100,000 before the year ending December 2009 and their future turnover drops below GBP 100,000.
HMRC Reminder for Online Tax Returns
HMRC is reminding taxpayers filing their 2010/2011 tax returns online for the first time to get registered in good time before January 31, 2012 filing deadline.
The registration process, including getting an Activation Code takes up to ten days.
The deadline for paper tax returns has passed on October 2011.There are penalties for late filing, even if there is no tax to pay, starting at GBP 100.
U.K. V.A.T Tax Amnesty
The British revenue and custom, HMRC, announced on July 5 a new V.A.T. amnesty for businesses who are not been registered yet for V.A.T purposes and have passed, or will pass soon the annual 2011-2012 threshold of GBP 73,000.
According to the proposed amnesty those who will come forward and register before September 30 with the HMRC will pay only additional 10% on their dues without additional penalties.
U.K. New 20% V.A.T. Rate
Starting January 4, 2011 the new standard V.A.T. rate in the U.K. is 20%, an increase of 2.5 per cent compared to the previous 17.5% rate.
British retailers worry that the V.A.T rise would fuel inflation.
U.K. Increased Beer Tax
The U.K. plans to impose additional tax on beer having above 7.5% alcohol by volume strength , at the same time tax on beer with low alcohol strength of 2.8% or less will be reduced.
The new tax which is expected to be in effect from autumn 2011 follows health researches regarding damages caused by high strength beer.
U.K. GDP up 0.4%
The U.K. office for statistics announced on March 30, 2010 that the GDP in the fourth quarter of 2009 increases in 0.4%, revised from the 0.3% in the previous estimate.
The credit agency Standard & Poors, S&P ,warned that the U.K. cherished AAA credit rating could be downgraded in case of failing to cut the public debt by the U.K. government.
S&P would review the credit rating after the general elections expected in May.
U.K. New 17.5% V.A.T. Rate
From 1.1.2010 the new standard V.A.T. rate in the U.K. is 17.5%, compared to the reduced rate of 15% since December 1, 2008.
From 1.1.2010 the stamp duty thresholds revert to the previous level.
U.K. 2009 Pre Budget Report
The U.K. pre budget report published on December 9, 2009 includes some significant tax changes.
Personal income tax ratesfor the year 2010/2011 will remain the same as the 2009/10 rates for income up to GBP 150,000. A new 50% tax rate will be imposed on income exceeding GBP 150,000.
From 6.4..2010 dividend income will be taxed at 42.5%, compared to the current 32.5% rate.
From 31.8.2010 a new 50% payroll tax will be imposed on bonuses exceeding GBP 25,000 paid by banks.
From 1.1.2010 the standard V.A.T. rate will revert to 17.5%.
U.K. Extended Disclosure Opportunity
The U.K. HMRC announced an extended deadline to the NDO, New Disclosure Opportunity, relating to taxpayers coming forward to make a full disclosure of undeclared offshore accounts and assets.
Acccording to the new deadlines taxpayers willing to take advantage of the NDO must register an intention on disclosure by 4 January, 2010.
The actual disclosure has to be made by 31 January for disclosure by paper, or by 12 March for electronic disclosure, facing a maximum 10% fine on unpaid taxes.
Those who do not choose the voluntary disclosure can face criminal charges and taxes of 30% -100% on unpaid tax.
HMRC Penalty Regime
HMRC published a new one penalty system for inaccurate tax docouments and returns. The new system replaces the previous wide variety of penalties.
The new system relates to returns and documents for the period starting on or after 1.4.2008 that are due to be filed on or after 1.4.2009.
The tax returns include capital gain tax, construction industry scheme, corporate tax, income tax , national insurance, PAYE and VAT.
According to the new system if a taxpayer takes reasonable care to get his taxes right, he would not be penalised by HMRC.
Reasonable care includes keeping accurate records, checking the current position in doubtful cases and telling HMRC promptly about any error discovered.
You can find detailed info in HMRC site www.hmrc.gov.uk.
U.K. Reduced HMRC Interest Rates
HM Revenue & Customs, HMRC, confirmed on February 16, 2009 a cut in the interest rates relating to late payments and overpayments
. The reduced interest rates are effective from 16.2.2009.
The rate for unpaid payments of corporations tax is reduced from 2.5% to 2%.
The rate for overpaid corporation tax is reduced from 1.25% to 0.75%.
For more information please see www.hmrc.gov.uk
U.K. New Reduced V.A.T Rate 2008
From 1.12.2008 the U.K. V.A.T rate has been reduced from the previous 17.5% rate to 15%
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