NEWS – THURSDAY 29TH APRIL 2021

NEWS ROUNDUP

TAX NEWS – THURSDAY 29TH APRIL 2021

HMRC to target tax evaders’ crypto assets

UHY Hacker Young has warned that a surge in interest in cryptocurrencies – alongside their climbing value – is likely to lead to increased scrutiny over their links to organised crime. The firm said that with organised crime becoming increasingly digital, there are concerns cryptocurrencies are being used by tax evaders, with HMRC set to demand data on cryptocurrency holdings from those it suspects of tax evasion in its “statement of assets” form. David Jones, director at UHY Hacker Young, said: “While criminals can still choose to not declare these assets, doing so gives HMRC another opportunity to bring criminal charges against them if their forensic work finds a hidden Bitcoin wallet.” Pointing to tax office concern that hidden wealth is “slipping through its fingers” due to the rise of cryptocurrencies and unsanctioned money transfer systems, Mr Jones added: “This demand for information is an important step in HMRC’s fightback against that”.

City AM Daily Express

7 in 10 willing to pay more tax to boost frontline workers’ income

A poll by the IE University Centre for the Governance of Change shows that seven in 10 UK workers are willing to pay more tax if it would boost the income of frontline workers. While 70% of UK and Swedish taxpayers would pay more tax to increase the wages of workers on the frontline, France was the only European nation not prepared to boost the wages of low paid workers, with 54% against the idea. Overall, the poll of 2,769 adults across nine European countries found that 61% of Europeans said they were willing to pay more in taxes in exchange for raising the salaries of essential workers.

The I, Page: 9

Think-tank: Independence could see tax rises

The Institute for Government (IfG) says an independent Scotland could face years of budget cuts and tax rises as it looked to manage its deficit, with the think-tank saying there would be an immediate need for “difficult fiscal choices” to address the gap between public spending and tax revenues. The IfG suggested that to cut the deficit and stop debt climbing, a newly independent Scotland could look to tax rises on immovable assets such as land or property, as well as rolling out spending cuts and launching policies to boost the economy.

The Herald

Samsung heirs to pay record inheritance tax

The family of Samsung Electronics chairman Lee Kun-hee will pay more than £7.8bn in inheritance taxes on his estate. Samsung said that the payment is one of the largest ever in South Korea and globally, noting that it is more than half of the value of the late chairman’s total estate. South Korea’s inheritance tax rate is the world’s second highest after Japan, coming in at 50% – with the rate rising to 60% for company shares inherited by large shareholders. In the UK and US the levy is set at 40% while across the Organisation for Economic Cooperation and Development, the rate averages 15%.

The Daily Telegraph Financial Times, Page: 4 The Times, Page: 34 The I, Page: 32 The Guardian The Independent Daily Mail City AM BBC News

Canada Finance Minister hails global tax plan ‘breakthrough’

Canadian Finance Minister Chrystia Freeland says a US proposal for a global minimum corporate levy is a “breakthrough moment” in international tax talks, with the OECD seeking agreement on a minimum rate.

Financial Times, Page: 6

HMRC in tax credit renewal reminder

Families are being urged to renew their tax credits to avoid losing out on support, with HMRC issuing 2.5m renewal packs to claimants, advising households to update their details by July 31.

Daily Mirror Daily Star

EMPLOYMENT NEWS – THURSDAY 29TH APRIL 2021

Barclays tops LinkedIn companies list

Professional network LinkedIn has released a ranking of the top 25 firms to build and sustain a long-term career, with Barclays identified as the best place to work for those keen to progress up the ladder. The Top Companies List identifies the organisations that offer growth, skills development opportunities and job stability. Tesco came second in the rankings, with NatWest third, BT fourth and PwC fifth. Deloitte (6th) and EY (8th) also made the top ten. Siobhan Morrin, news editor at LinkedIn, said the Top Companies List “provides a helpful resource of companies that offer skills development and stability, giving our members that added confidence when taking that first step towards their next opportunity.”

Daily Mail City AM

Women in North worst hit by pandemic

The IPPR North think-tank has published a study which shows that women living in the North of England have been disproportionately hit by the economic disruption caused by the coronavirus pandemic. The research found that almost half of northern women currently in work are in sectors that have been hardest hit by the coronavirus emergency, such as retail and hospitality. By comparison, men constitute around only a quarter of the workforce in these industries. The report also found most key workers in the North are women. IPPR North wants pay and working conditions for women across the region to be improved, and proper data to be amassed on inequalities.

The Independent

Police forces urged to exploit tax break

Police Federation chairman John Apter says forces should use tax breaks to target former soldiers in their bid to recruit 20,000 more officers. He has called on police forces and ministers to make the most of new rules that exempt firms and public sector bodies which employ military veterans from paying National Insurance contributions during the first 12 months of their employment.

The Daily Telegraph, Page: 13

INSOLVENCY NEWS – THURSDAY 29TH APRIL 2021

Scottish insolvencies expected to jump

R3, the trade body for insolvency and restructuring accountants, says the number of Scottish companies facing insolvency is expected to rise despite restrictions on the economy being relaxed, with the repayment of coronavirus-related Government loans set to hit firms that have been kept afloat by the support measures. Figures show corporate insolvencies in January to March were down 31% on Q4 2020 and 63% lower than the first quarter of last year. However, the number is set to climb in the coming months, with Tim Cooper, chair of R3 in Scotland, saying companies are “in a form of suspended animation” but warning that this “cannot last forever”.

BBC News

CORPORATE NEWS – THURSDAY 29TH APRIL 2021

Dixons Carphone to close airport stores

Dixons Carphone is to permanently close all of its outlets in airports, pointing to the impact of the Government’s decision to scrap tax-free shopping, with the retail scheme which enabled non-EU visitors to reclaim VAT paid on their purchases having been withdrawn on January 1. Dixons Carphone says it took the “difficult decision” to close the stores as it does not expect passenger numbers to recover sufficiently to compensate for the removal of airside tax-free shopping. The firm said staff employed at the stores will be offered roles elsewhere. Meanwhile, Dixons Carphone also revealed that strong recent sales mean it will repay £73m in furlough support.

The Times The Guardian Sky News

PROPERTY NEWS – THURSDAY 29TH APRIL 2021

Prices could climb £23k

Research from estate and lettings agent Barrows and Forrester suggests the extended stamp duty holiday could see the average house price climb by more than £20,000 this year. The analysis shows that since the Chancellor announced the tax break in July 2020, house prices across England have increased by an average of 0.84% each month, hitting £268,291. If this rate of growth continues, the average price could be £23,376 higher by the end of 2021. The South East of England, where typical prices have risen 0.87% month since the introduction of the stamp duty holiday, could see the biggest jump, with £31,176 added to the average if the current rate of increase is maintained.

Daily Express

ECONOMY NEWS – THURSDAY 29TH APRIL 2021

Business leaders set out recovery plan

A group of leading executives have set out a plan for a post-pandemic economic recovery, with the Covid Recovery Commission calling for the creation of at least one new globally competitive industry hub in every part of the UK by 2030. The commission, whose members include executives from firms including Tesco, Vodafone and AstraZeneca, is also calling for a radical overhaul of the Apprenticeship Levy, with the establishment of £10,000 lifelong training allowance for all over-25s. Tesco chair John Allan said the commission’s report goes beyond “purely economic measures”, arguing that there is a need for growth to be used to remedy widening social inequality.

BBC News

OTHER NEWS – THURSDAY 29TH APRIL 2021

Microsoft moving in on Big Four’s territory?

Andrew Orlowski in the Telegraph says that while Microsoft has always been competent with its developer tools, it is now able to add business analysis tools to its software, saying this may have the technology divisions of accountancy firms “looking nervously over their shoulders.” He adds that with Microsoft’s “industry-specific clouds” focused on business sectors such as retail, manufacturing and healthcare, “it has parked its tanks squarely on the Big Four’s lawn”.

The Daily Telegraph, Business, Page: 4

Contact Paul Southward

Paul Southward