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HMRC debtor and creditor interest rate

The rate of interest on taxation-related debts payable under a

court judgement or order by HMRC will be set at a rate equal to

the Bank of England base rate plus 2%. The late payment interest

rate of 3% will apply to taxation-related debts owed to HMRC

under a court judgement or order. The changes will apply to all

judgements and orders in respect of interest accruing after 7 July

2015.

ANTI-AVOIDANCE MEASURES

Disguised employment IR35 reform

The government will consult with stakeholders this year on how

to improve the effectiveness of the intermediaries’ legislation

(IR35) to protect against disguised employment.

Employment intermediaries and tax relief for travel

and subsistence

The government has published a consultation document on

detailed proposals to restrict tax relief for travel and subsistence

for workers engaged through an employment intermediary,

such as an umbrella company or a personal service company. The

changes will take effect from 6 April 2016.

Controlled foreign companies (CFCs)

Companies will be prevented from using UK losses and reliefs

against a CFC charge from 8 July 2015.

Direct recovery of debts

New legislation will modernise and strengthen

HMRC’s powers to recover tax and tax credit debts

directly from debtors’ bank accounts, including funds

held in cash ISAs. The measure will be subject to

robust safeguards, including a county court appeal

process and a face-to-face visit to debtors

before they are considered for debt

recovery in this way.

BUDGET

8 JULY 2015

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