Alliotts Budget Summary 2020

14 BUDGET l 11 March 2020 TAX AVOIDANCE AND EVASION Construction Industry Scheme (CIS) abuse Legislation will be introduced in the Finance Bill 2020-21 to prevent non-compliant businesses from using the CIS to claim tax refunds to which they are not entitled. The government is also launching a consultation that considers options on how to promote due diligence in the supply chain. Domestic reverse charge for building and construction services The implementation of the VAT domestic reverse charge for building and construction services will be delayed until 1 October 2020, as previously announced. Conditionality for granting business licences Legislation in Finance Bill 2020-21 will make the renewal of licences to drive taxis and private hire vehicles (PHVs), operate PHV firms, and deal in scrap metal conditional on applicants completing checks that confirm they are appropriately registered for tax. This measure will take effect in England and Wales in April 2022. The government is considering extending this reform to Scotland and Northern Ireland in the future and will work with the devolved administrations to this effect. In the spring a discussion document will be issued seeking views on the wider application of tax conditionality. Loan charge The forthcoming Finance Bill will legislate to implement the recommendations of the Independent Loan Charge Review that the government has accepted. A call for evidence on further action to stamp out disguised remuneration schemes will be issued shortly. HMRC’s promoter strategy HMRC will publish a new strategy for tackling the promoters of tax avoidance schemes in addition to the legislative changes in Finance Bill 2020-21. A call for evidence will be published in the spring about raising standards for tax advice.