Introduction to Linda Cameron, Manager at A&M Taxand

We were delighted to welcome Linda Cameron to the A&M Taxand UK team in November 2020.

Linda is a Manager within the Employment Taxes team at Alvarez & Marsal Taxand UK and is based in Scotland. Linda has worked with clients across a range of industries and has extensive experience in all areas of UK employment tax including salary sacrifice, expenses and benefits, employment status, the Construction Industry Scheme and termination payments.

Prior to joining A&M, Linda has worked at Big Four and mid-tier accountancy firms, where she advised clients across both Scotland and South West England, and is most recently returning from a career break to join the team at A&M.

Contact Linda at lcameron@alvarezandmarsal.com.

Updated HMRC guidance: Disguised Investment Management Fee (DIMF) and Carried Interest Rules

On 13 October 2020, HMRC published its long-awaited updated guidance on the application of the DIMF and Carried Interest rules.

The DIMF rules have been effective from 6 April 2015 and were introduced to target amounts received by individuals that are, in substance, management fees and so ought to be subject to tax as trading income regardless of the underlying nature of those amounts at the fund level [income tax at a max. rate of 46% (Scotland) / 45% (rest of UK) and Class 4 National Insurance Contributions at a max. rate of 2%].

The original guidance for these rules was set out in HMRC’s Technical Note ‘Investment Managers: Disguised Fee Income’ dated 29 March 2015 and a later draft revised version was circulated in October 2016. However, no further guidance was released until 13 October 2020. The updated guidance can be accessed here.

Please refer to the full article on our website here for more information. 

A reminder of the self-assessment tax filing deadline on 31st January 2021

We wanted to highlight that the online submission deadline for 2019/20 self-assessment tax returns is 31 January 2021.

Please note that HMRC have not announced an extension to the self-assessment tax filing deadline as a result of Covid-19. However, HMRC issued a press release on 25 January 2021 that confirmed self-assessment taxpayers will no longer receive an automatic £100 late filing penalty if their 2019/20 tax return is not filed by 31 January 2021 and as long as they file by 28 February 2021. Please note that all tax liabilities must still be paid to HMRC by 31 January 2021 and any late payments will attract interest from 1 February 2021 on outstanding liabilities.  Further penalties may apply if the tax return has still to be filed after 3 months from 31 January 2021.

Please don’t hesitate to contact us if you have any questions or require assistance with your 2019/20 self-assessment tax return.

An overview of HM Treasury's (HMT’s) Call for input: Review of the UK funds regime

In the March 2020 Budget, the Government announced its intention to carry out a review of the UK funds regime. As a result, HMT published a call for input on 26 January 2021 seeking views from various stakeholders to identify ways in which the Government can make the UK a more attractive location to set up, manage and administer funds as well as supporting a wider range of efficient investments to suit investors’ needs.

The call for input seeks views on the followings areas:

• The UK’s approach to funds taxation;
• The UK’s approach to funds regulations; and
• Opportunities for wider reform.

All responses should be submitted to HMT by 20 April 2021. If you have any ideas that you would like us to include in our response to HMT, please don’t hesitate to get in touch.

Please refer to the full call for input for more information on the Government website here.