Budget headlines at-a-glance
- MONEY DIRECT FROM BANK ACCOUNT: As we warned in our blog post https://abbeytaxblog.co.uk/2014/03/13/budget-2014-hmrc-to-take-money-direct-from-bank-accounts/, HM Revenue & Customs (HMRC) is going to be given debt collection powers to recover money direct from the bank and building society accounts, including ISAs, of debtors who owe over £1,000 of tax or tax credit debts. HMRC will use this route after the debtor has been contacted ‘multiple times’. A minimum of £5,000 will be left ‘across’ debtors’ accounts after the debt has been recovered.
- PERSONAL ALLOWANCE RESTRICTION: The Government is to consult on whether and how the personal allowance can be restricted to UK residents and those living overseas who have strong economic connections in the UK.
- PAYMENT PLAN: A new online system – Self service time to pay – is going to be introduced to enable people in financial difficulty to set up a payment plan for self-assessed income tax.
- CLASS 2 NIC: From April 2016, Class 2 national insurance contributions for the self-employed will be collected through Self Assessment.
- CIS: A consultation is going to take place this summer on options to improve the operation of the Construction Industry Scheme (CIS) for smaller businesses and the introduction of mandatory on-line filing for contractors.
- TAX TARGETS: HMRC’s compliance yield target has been increased to £24.5 billion in 2014/15 and £26.3 billion in 2015/16 to reflect new rules and penalties on ‘high risk promoters’ of tax avoidance schemes.
and, finally, the more unusual…
- CHEQUE DEPOSITS: The Government will legislate this year to facilitate cheque imaging, allowing people to pay in cheques by mobile phone.
Author: Guy Smith, Senior Tax Consultant on the ReSource Tax & VAT Consultancy Team.
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