Autumn Budget 2017—Tax administration and avoidance

This analysis is part of the Lexis®PSL Tax team’s summary of the Autumn Budget 2017.  Some of the links require a LexisPSL subscription. If you are not a subscriber, you can take a free trial here.

Late submission and late payment sanctions

Following a series of earlier consultations, with the most recent being that published on 20 March 2017, the government has confirmed that:

  • in relation to late submission sanctions, it intends to proceed with a points-based model, ie where a failure to meet a submission deadline incurs a penalty point and when the number of points reaches a threshold (as yet undetermined), a financial penalty is incurred. There will be a consultation on draft legislation in Summer 2018 but no implementation date has yet been set, and
  • in relation to late payment sanctions, the government intends to publish a new consultation on whether to simplify and harmonise penalties and interest with decisions on both measures to be taken only after that consultation, having stated in the 20 March consultation that it would proceed with plans to introduce penalty interest for late payment of corporation tax, income tax and VAT

Further detail may be expected in the response document and new consultation, which are expected to be published on 1 December 2017.

For more detail on the previous consultations, see News Analysis: Finance Bill 2017—key tax compliance provisions — Consultations and summaries of responses.

See Autumn Budget 2017 (para 3.84) and OOTLAR (para 2.70).

Future developments

  • Encouraging compliance by users of digital platforms: the government will publish a call for evidence in Spring 2018 to explore what more digital platforms can do to prevent non-compliance among their users. See: Autumn Budget 2017 (para 3.82) and OOTLAR (para 2.73)
  • Profit fragmentation: the government will consult in 2018 on how to prevent avoidance by UK traders or professionals who arrange for UK trading income to be transferred to unrelated entities, including where profits accumulate offshore and are not returned to the UK. See: Autumn Budget 2017 (para 3.72) and OOTLAR (para 2.6)
  • Conditionality: the government consulted in autumn 2016, as part of its proposals to 'tackle the hidden economy', on new rules to make access to certain licences or business services conditional on being registered for tax. A further consultation will be published in December 2017, with any changes to be legislated in a ‘future Finance Bill’. See: Autumn Budget 2017 (3.69) and OOTLAR (para 2.68)

 Further Guidance

  1. SUMMARY OF KEY ANNOUNCEMENTS AND BACKGROUND
  2. BUSINESS AND ENTERPRISE
  3. INCENTIVISED INVESTMENT
  4. EMPLOYMENT TAXES AND SHARE INCENTIVES
  5. REAL ESTATE TAXES
  6. FINANCE
  7. VAT
  8. TAX ADMINISTRATION AND AVOIDANCE
  9. INTERNATIONAL
  10. ENERGY AND ENVIRONMENT

LexisPSL subscribers can access all analysis and insight on the Autumn Budget 2017. If you are not a subscriber, you can take a free trial here.

Filed Under: Budget

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