Introduction to Rachel Brown, Analyst at A&M Taxand

We are delighted to welcome Rachel Brown to our team in Glasgow.

Rachel is our first Graduate Analyst in Scotland and joined us in September 2021. She is currently working in the Private Client Services team and focusing on tax compliance work ahead of the Self-Assessment deadline on 31 January 2022.

Prior to joining A&M, Rachel undertook a BA(Hons) Business degree at the University of Strathclyde and an MSc Energy and Sustainability degree at the University of Edinburgh.

Rachel is pursuing both an Associate Chartered Accountant’s qualification with ICAEW and a Chartered Tax Advisor qualification with CIOT.

Welcome to the team, Rachel!

The Autumn Budget and Spending Review 2021

Overview

UK Chancellor Rishi Sunak delivered his Autumn Budget on 27 October 2021, focusing his announcements on plans to rebuild the economy post-Covid against a backdrop of growing pressures on businesses and families stemming from rising inflation.

The Budget did not contain any significant measures for Asset Managers other than an announcement of significant funding for the British Business Bank which is a cornerstone investor in a number of Asset Managers’ funds and specific Asset Holding Company (“AHC”) legislation to be introduced from April 2022.
    
The Prime Minister had previously announced on 07 September 2021:

• An increase, to take effect from 6th April 2022, to Income Tax rates on dividend income by 1.25% across all tax bands; and
• A temporary increase to National Insurance Contributions (“NIC”) by 1.25% for tax year 2022/23 which will then be replaced by a Health and Social Care Levy.  

Keynotes for Asset Managers

The key announcements in the Autumn Budget and Spending Review 2021 for Asset Managers include:

• British Business Bank will receive over £1.6 billion to deploy funds into the North East and South West of England along with new regional funds being launched in Scotland and Wales, and the expansion of existing programmes in Northern Ireland.
• AHC legislation to be introduced from April 2022 which will introduce a new framework for the taxation of AHCs as well as payments made by AHCs (including changes to the remittance basis).  The legislation aims to “to build on the UK’s strengths as an asset management hub by enhancing the attractiveness of the UK as a location for AHC establishment”.  Please refer to further information here.
• Following a short Consultation in the Summer, reforms to Income Tax basis periods will take effect from 06 April 2024 with transitional rules in place for tax year 2023/24. Under the reforms, the ‘current year basis’ will be replaced with a new ‘tax year basis’ with individuals liable to tax on tax-adjusted profits in the tax year.  
• The UK Government will publish a response to the “Review of the UK funds regime: a call for input” issued in January 2021 in respect of tax and regulatory issues associated with the UK funds regime which Alvarez & Marsal Taxand UK LLP provided input into.
• As previously announced on 23 September 2021, Making Tax Digital for Income Tax Self Assessment will now be introduced from 6 April 2024. 

Please see our article on the Autumn Budget and Spending Review 2021 

Webinar on the Autumn Budget and Spending Review 2021

On 28 October 2021, A&M Taxand’s leaders hosted a webinar to discuss the Autumn Budget and Spending Review 2021.

If you would like to listen to the discussion, please see the link here.

Closure of the Coronavirus Job Retention Scheme

Now that the Coronavirus Job Retention Scheme (“CJRS”) has drawn to a close, and final claims/amendments have been made, unsurprisingly HM Revenue and Customs (“HMRC”) are ramping up their compliance checks in this area. Having set up a designated task force, HMRC appear to be moving into a second wave of enquiries with a focus on claims that may contain technical errors and claims that are large (where the first wave focus was more on ‘known’ errors).

We would urge all businesses who have made a claim under CJRS to ensure proper controls are in place to identify letters from HMRC in this regard as tight response deadlines are typically being set. A&M’s Reward & Employment Tax team have supported a number of clients in this area recently both in terms of internal/pre-emptive claim reviews, and support with external HMRC CJRS compliance checks. 

Please contact us if you would like to speak to our colleagues with regard to CJRS claims or, alternatively, please find more information about our Reward & Employment Tax team here.