Category Taxation in UK

UK Facing Major Backlash on APD

September 25, 2017 Taxation in UK

Emirates APDLONDON – International airlines are gearing up to fight the UK government over its excessive taxation of international flights.

Over the last week, two international airlines joined a campaign calling for the government of the UK to drop its Air Passenger Duty, or to at least cut the rate.

Currently, any passenger flying out of the UK or the Isle of Man is required to pay an Air Passenger Duty at a rate of GBP for economy seats, and GBP 26 for all other classes.

The rate applies to flights of less than 2 000 miles, with longer flights, or flights on private jets, being set at GBP 75 for less than 2 000 miles, and GBP 150 for over 2 000 miles.

The rates are expected to rise in November this year to approximately GBP 78 and GBP 156 for the longer flights.

The campaign to either cut the ra...

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Book Stores Pay More Tax Than Amazon

September 14, 2017 Taxation in UK

Taxes on bookshelfLONDON – Amazon is simultaneously outselling UK bookshops, while also paying only a fraction of the tax that they pay.

A new report released by the UK think-tank the Centre for Economics and Business Research has claimed that the UK division of Amazon pays a fraction of the taxes that local bookshops pay on their activities.

Based on the conclusion reached by the researchers of the report, UK bookshops pay an estimated GBP 12 million in corporate income tax, an amount which equates to approximately GBP 0.91 per GBP 100 of turnover.

However, Amazon paid out a total of GBP 15.8 million in 2015 on approximately GBP 1.5 billion in turnover.

The effective tax rate faced by the online giant comes to a much lower effective tax rate of only GBP 0.08 per GBP 100 of turnover.

It is estimated that...

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Non-Doms Contribute Billions to the UK

September 1, 2017 Taxation in UK

Non-dom taxation UKLONDON – Non-doms in the UK are contributing billions in taxes each year, potentially to the surprise of many UK citizens.

New data released by the UK HM Revenue and Customs has shown that non-domiciled individuals in the UK are paying more than GBP 9 in taxes each year.

Under current UK law, some individuals who are residents in the UK but claim to have a permanent home outside the UK are able to enjoy some selected breaks on their non-UK incomes, unless their funds are moved to the UK.

The subject of the taxation of non-doms is a controversial one, and has been debated heatedly by politicians and the public.

However, UK tax authorities have now revealed that these taxpayers actually contribute much more to the national coffers than previously thought.

Over the course of 2014-15, non-d...

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UK Landlords Persistently Dodging Taxes

August 19, 2017 Taxation in UK

Rental in the UKLONDON – The UK could be GBP 1 billion better-off if landlords didn’t dodge their taxes.

Landlord across the UK are avoiding billions in taxes by simply not declaring their rental incomes, according to new information released by Richard Murphy, a professor at the City University of London.

The researcher bases his claim on his own analysis of tax dodging in the Newham Council in London.

He estimated that approximately half of the landlords in the area have not registered for the self-assessment of their taxes.

The lack of registration equates to approximately GBP 200 million in missed annual taxes in London.

Richard Murphy believes that if the data and assumptions are extrapolated to a national level, then the annual loss of tax income could be in excess of GBP 1 billion.

Under current ...

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Electric Cars Will Lead to Tax Changes

July 27, 2017 Taxation in UK

electric cars in the UKLONDON – Electric cars may be good for the environment, but they will not be good for the UK’s tax revenues.

Taxation and car experts in the UK have come forward to warn that the government will need to implement new car taxes in the future.

The warning has come within days of the government of the UK announcing that by 2040 all new vehicles purchased in the country will need to be electric.

Currently, approximately 65 percent of the purchase price of fuel in the UK is made up of taxation, in the form of VAT and fuel duties.

As an increasing number of consumers switch to electric vehicles, the revenues drawn from fuel sales will fall.

It is estimated that for every GBP 1 spent on charging a car, the government will earn approximately GBP 0.05.

Further, as home solar-arrays become more rel...

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