Reform to perform - simplify taxes for small business units to increase enterprise

The contribution from rural areas to the nation - a quarter of UK population,
30% of its employment and economic output, and 80% of its land area - shows that
the success of the countryside matters. Following the foot and mouth outbreak of
2001 regeneration of the countryside is high on the political agenda, and the
'Curry Report' on 'Farming and Food - a Sustainable Future' has proposed far
reaching recommendations, which CLA supports.


This Guidance Note explains how the practice, under which Beaters employed by shoots were treated as "Daily Casuals" for the purposes of PAYE is being adapted for the new Real Time Information system, including the information to be obtained from the Beater and how it should be recorded.

Review of Existing Legislation on VAT Reduced Rates

The EU is seeking the abolition of reduced rates which constitute an obstacle to the proper functioning of the internal market.  This review has particular resonance for housing and the reduced VAT rate on energy efficiency materials and micro-generation in the UK.  The CLA response has been guided by consultation with the Taxation Committee and focuses on promotion of "10" but more specifically 10a of Annexe III of the 2006 VAT Directive.  "10a" allows for Labour and Materials spend on renovation and repair work to be split and the lower rate of VAT to be levied on the labour element only.  It also allows for spend on repair work to be offset against other tax.


General Anti-Abuse Rule (GAAR)

The CLA has responded to the 12th June 2012 consultation that explores proposals to introduce a general anti-abuse rule to counter perceived unacceptable tax avoidance.  In its response (which is limited to how such a rule would work within inheritance tax) the CLA has suggested that the rule is unnecessary, but if introduced should replace existing anti-avoidance legislation.

Disincorporation Relief

The CLA has responded to the June 2012 consultation that explores a possible,
temporary, and limited disincorporation relief for the smallest businesses.  In
its response, the CLA has suggested that a disincorporation relief should be
available to all companies and that tax should not seek to prefer one business
structure over another.


Subscribe to RSS - Tax