Category Taxation in UK

UK Needs New Health Tax

February 10, 2017 Taxation in UK

Taxes to fund the NHSLONDON – The UK health system needs its own dedicated tax to ensure that it has an independent and reliable source of funding in the future.

In a new article published on February 8th in the medical journal, the British Medical Journal, the researcher Richard Layard suggested that a new tax on personal incomes be enacted in the UK, with the revenues being ringfenced exclusively for use in the national medical system.

It was proposed that the new tax be levied on top of existing taxes and levies, although some tax cuts could be enacted to the personal income tax system to compensate for the rise.

The exact rate for the tax should be set to cover the total of the expenses of the medical system.

The rate could be varied based on the needs of the medical system, and taxpayers’ satisfaction ...

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HMRC Considers Dropping Paper Tax Returns

February 2, 2017 Taxation in UK

HMRC UKLONDON – Innovative new technology could spell the end of paper tax returns in the UK.

The HM Revenue and Customs has released a new version of its Making Tax Digital policy document, suggesting that in the near future the standard tax return faced each year by businesses and individual will be a thing of the past.

It was proposed that the annual paper tax return be preplaced with an online system to be updated by the individual or business-owner once every quarter.

The improved system should reduce and spread out the task of ensuring compliance with tax requirements over the course of the year, reducing the burden of the end-of-year crunch.

Alongside with filling the taxes online, taxpayers will also be able to pay their owing taxes through the same online system.

As part of the digital r...

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Whisky Supports the UK Economy, But Needs Tax Break

January 26, 2017 Taxation in UK

Whisky taxLONDON – Excise duties on Scotch Whisky should be slashed in order to support an industry that accounts for at least 3 percent of the country’s trade balance.

New data in a report issued by the UK Department for the Environment, Food and Rural Affairs has shown that the national whisky industry provides a disproportionate benefit to the country, compared to the taxation levels that it faces.

It was shown that the level of exports of whisky from the UK is approximately GBP 4 billion each year, however, the net level of imports required by the industry is approximately GBP 200 million, resulting in a net trade balance of GBP 3.7 billion.

The level of the trade balance in the whisky industry is one of the highest is one of the highest in the country.

It was calculated that the national trad...

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Financial Services Net GBP 71.4 Billion in Tax

December 7, 2016 Taxation in UK

UK financial sectorLONDON – The financial industry in the UK is underlining its contribution to the country, as the country comes closer to negotiations regarding Brexit.

A new report prepared by the accounting firm PWC for the City of London has shown that the UK’s financial services sector pays approximately GBP 71.4 billion per year in taxes.

The total of the taxes paid accounts for nearly 11.5 percent of the country’s total tax receipts.

According to the head of financial services at PWC, Andrew Kail, the report highlights the increasing reliance of the UK on the tax revenues derived from banking and insurance businesses in the country.

The report also pointed out that the revenues currently being collected due to the financial service industry may be at risk in the face of Brexit.

As it is not ye...

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UK Publishes Draft Sugar Tax

December 6, 2016 Taxation in UK

UK sugar taxLONDON – The UK has taken a practical step towards the introduction of a tax on the sale of sugary drinks.

On December 5th the UK government released the draft of its proposed new legislation which will see tax levied on the sale of sugary beverages.

Under the scope of the new rules, sugar-sweetened beverages will be taxed in two bands, with drinks a sugar content of more than 5 grams of sugar per 100 millilitres being taxes at a rate of GBP 0.18 per litre, while drinks with more than 8 grams of sugar per 100 millilitres being taxed at a rate of GBP 0.24 per litre.

Previously the government had estimated that the tax would raise as much as GBP 520 million per year.

It is estimated that the tax would ultimately add between GBP 0.18 and GBP 0.24 to the shelf-price of drinks sold in the UK.

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