The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
HMRC announced in Summer Budget 2015 that it was going to require certain large businesses to publish their tax strategy. With effect from the first financial year beginning after Royal Assent to FA 2016, large businesses affected by this announcement are required to publish their strategy in respect of ‘UK taxation’ a term which includes, but is not limited to, VAT.
HMRC has yet to provide further details on certain aspects regarding the scope of the legislation, so this guidance note provides an overview of the requirements published to date.
HMRC has published some very high level guidance and a copy can be found via the following link: HMRC tax strategy publication high level guidance .
The businesses who are required to publish their UK tax strategy are:
Hereafter described as ‘qualifying businesses’. The above terms are described in detail in Finance Act 2016, Sch 19, Part 1 and in HMRC tax strategy publication high level guidance . However, broadly speaking they include UK businesses with a turnover, by reference to the previous financial year, of more than £200 million and / or with a balance sheet totalling more than £2 billion.
Please note that there is a provision to include MNEs subject to country by country reporting requirements with a global annual turnover of £568m, in the UK, either in their own right or if their head of group were tax resident in the UK. Subject to any further guidance that might be issued, this would appear to bring within scope some comparatively small UK subsidiaries of large MNEs.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login