Welcome to this special edition of Tax Voice Autumn Statement 2011.
Last year George Osborne's first Autumn Statement was delivered with half the country covered in snow. The weather might be warmer this year but the economic climate remains very unsettled. Read our response to find out what key changes the Chancellor has announced to the tax system to promote growth and create the most competitive tax regime in the G20.
Top stories
Autumn Statement - one for the record books, but the devil will be in the detail
As fiscal statements go, 29 November 2011 will be one for the record books. With economic turbulence outside the Houses of Parliament and vociferous heckling from the Opposition benches within, the Chancellor struggled both to formulate and present proposals which remedied missed Coalition debt-reduction targets while supporting businesses, tackling unemployment and boosting infrastructure spend.
Where am I? Where do I live?
You would think these questions are simple enough to answer but they do exercise the brains of many people who seem to be caught in a twilight world of UK residence or non-residence. Help is at hand in the form of a statutory residence test.
Panto time and employee benefit trust enquiries: there isn’t a settlement deadline . . . ‘Oh yes there is!’
HMRC is inviting users of employee benefit trusts (EBTs) to make an agreement to settle PAYE and NIC disputes and obtain corporation tax deductions: but only on payment of full PAYE, NIC and interest. The deadline is probably 31 December 2011 but you could be forgiven for being confused by HMRC’s statement on the subject.
Other news
EIS and VCT: something ventured; tax relief gained
Funds raised under EIS or from VCTs can now be spent overseas.
From 6 April 2012, larger companies can access EIS and VCT funds and raise up to £10million*.
Individuals now get 30% income tax relief, from 6 April 2012 can invest up to £1million per annum.
Pay(e) late, pay the penalty
Businesses that ignore the payment deadline for their PAYE, NIC and student loan deductions are beginning to be hit by the first wave of very expensive penalties under the new regime.