Hectic week for the middle of summer – what’s happening in tax?

This week seems to have included a number of potentially significant announcements and news items affecting taxpayers and tax professionals. As a quick summary, here are a few :

HMRC have announced details of the first five arrests for tax evasion following the closure of the initial notification period for the Plumbers Tax Safe Plan on 31 May. Locally these include the arrest of a Ringwood man alleged to have evaded income tax of over £150,000. This is a useful reminder of the advantage of making an unprompted disclosure to HMRC if you have past tax failings – not only will the penalties be reduced, but it is extremely rare for HMRC to consider criminal prosecution if you voluntarily disclose things. Anyone with concerns about their past record should consider taking advice from someone experienced in tax investigations and disclosures.

The government have today announced seven move Enterprise Zones, which includes one locally, the Solent Enterprise Zone at Daedalus Airfield in Gosport. At present we appear to be awaiting more details of the specific incentives available to businesses setting up in the Zone.

A recent Supreme Court case (Autoclenz Ltd v Belcher) has raised concerns in the mind of many tax advisers about whether some self-employment contracts ‘work’ for tax purposes. Although the case was an appeal from an Employment Tribunal case on minimum wage and hoiday entitlement, it is quite possible HMRC will try and use this in the tax arena. In my mind the key reminder this decision gives is that the written contract and the reality of the commercial relationship must be consistent. This case consider whether a substitution clause in the written contract was relevant given the realities of the situation. Again a reminder to take proper advice not just on the initial contract but on how the ongoing relationship works.