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
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
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.
8 JULY 2015