The Budget Blues - Consultations
9 July 2015
- To improve tax compliance among small businesses, the government will legislate to give HMRC the power to acquire data from online business intermediaries and electronic payment providers to help identify businesses that are trading but not declaring or paying tax. HMRC will consult on these proposals in July 2015.
- In its continued efforts to tackle anti-avoidance the government will consult on introducing a General Anti-Abuse Rule (GAAR) penalty in addition to taking steps to strengthen the GAAR further.
- The government will consult on the rules for company distributions in autumn 2015.
- IR35 reform – The government will engage with stakeholders this year on how to improve the effectiveness of existing intermediaries’ legislation (‘IR35’) which is designed to protect against disguised employment. A discussion document will be published after Summer Budget 2015.
- A further consultation process has been launched to examine rules relating to deductible travel and subsistence expenditure incurred by those working for intermediaries such as an “umbrella” company or personal service company. The broad idea is to restrict reliefs available to these individuals, and to align them more closely with more conventional employments (where no deduction is available for “ordinary commuting”).