Our tax team detail the top tax developments for organisations to focus on in 2018.
As the New Year starts, and plans and objectives are made, this article highlights some upcoming tax developments that we recommend organisations address during 2018.
Many tax and finance professionals will have noted a trend in recent years for there to be greater emphasis on the processes and controls in place to ensure good tax governance. This trend is expected to continue during 2018 and beyond, in combination with a growing focus on the use of technology to automate and add efficiencies to tax compliance processes.
Last, but not least, is the reputational risk of tax. Organisations now operate in a world where tax is front page news and many boardrooms will be focused on ensuring that they do not face negative publicity from their tax affairs.
Making tax digital for VAT
Although the implementation date is actually 1 April 2019, like all technology projects, there is a lead time in making the necessary changes to be able to successfully implement the measures needed to comply with the new rules.
Pension fund VAT
After more than four years of uncertainty, in late 2017 HMRC published its long awaited final guidance in relation to changes to pension fund VAT arrangements.
We’ve highlighted three developments to personal tax that might impact individuals; tax on dividends, tax on company cars and tax on properties.
Last year saw the requirement for around 2,000 large businesses and UK subsidiaries of multinationals to publish a tax strategy online for the first time.
Continued spotlight on tax avoidance
2018 is likely to see a continued focus on collecting tax through preventing abusive tax avoidance including through use of the General Anti-Abuse Rule (GAAR) for tax schemes.
New corporate loss relief rules
Changes to the corporate loss relief rules from 1 April 2017 will require careful consideration in 2018 by companies and groups with losses to make sure that as much relief for losses as possible is claimed.
Simplification of the Substantial Shareholdings Exemption
A review of commercial objectives that involved group eliminations, group restructures or third party sales now provides an opportunity to put group restructure plans into action without creating tax charges.