Ministers should consider a carbon tax on imports to help struggling British manufacturers, according to Adair Turner, one of the Government's key advisers, despite fears such a measure could lead to a global trade war.
Guardian 2.3.10
Given the power of some of the countries likely to be targeted, it would be a brave government that would impose carbon tax on imports from non-EU countries.
The proposal for a new international tax on bank transactions has been given a boost after one of Japan's most senior government ministers, Katsuya Okada, came out in favour of the plan.
The ongoing saga of the Tobin – or Robin Hood – tax on banks is a dead horse – at least until the USA expresses any significant interest in the levy.
CORPORATION TAX
General Electric, the infrastructure, finance and media conglomerate, has criticised Tory plans for a swift, 3% cut in the headline rate of corporate rate, saying it would be a 'real own goal' for manufacturers and big inward investors.
Financial Times 5.3.10
At first sight this criticism of a corporate tax rate cut may seem strange; the proposal is that it will be funded by a reduction in capital allowances. Technological changes mean rapid depreciation of plant and machinery, and the effective cost of replacement may therefore be more expensive.
GENERAL
Tax specialists expect HMRC to step up their attempts to reduce the numbers of people claiming self-employed status after winning the latest round in a case involving 1,700 team leaders at Weight Watchers centres.
Telegraph 2.3.10
Self-employed status is frequently the subject of appeals to the tribunals. The self-employed must take care that they can show their working terms do not bear characteristics of an employer/employee relationship, to ensure they maintain their status.
The forthcoming Budget must focus on public spending cuts rather than tax increases, the British Retail Consortium (BRC) has warned.
Telegraph 1.3.10
The BRC is particularly concerned about the 1% NI increase, which will add to the cost of employing staff. It is generally accepted that cuts will be needed, but there are no indications that any of the proposed tax increases will not go ahead.
GREEN TAXES
The EU is drawing up plans for its first direct tax, with a green levy on petrol, coal and natural gas that could cost British consumers up to £3 billion.
Telegraph 5.3.10
This proposal saw light several years ago, but was shelved. The EU needs more income for institutions since the Lisbon Treaty, but a green tax is likely to hit UK energy consumers and businesses particularly hard because recent rises in fuel duties are more than double the 5.07% average for western Europe.
INCOME TAX
The forthcoming 50% tax rate for the highest earners is dissuading entrepreneurs from expanding their companies, according to Howard Hackney, an independent business adviser.
Financial Times 27.2.10
It seems a large cause of dissatisfaction with the tax system is its complexity and lack of stability. Businesses like to be able to predict their outgoings. Changing rules and rates are likely to be a disincentive to investment.
The Treasury has finally struck a deal to exclude Britain's stockbrokers from the 50% bonus tax, ending three months of uncertainty for the sector.
Telegraph 5.3.10
This concerns the operation of the bank payroll tax proposed in the 2009 pre-Budget report. The Treasury is expected to confirm shortly which organisations will be affected by the new tax.
INHERITANCE TAX
Conservative plans to slash inheritance tax would effectively abolish the tax 'for practical purposes', according to research by accountants Grant Thornton.
Independent 1.3.10
As this story points out, the take from inheritance or estate taxes is now at an all-time low, even without the Tory proposal that would mean fewer than 5,000 estates would pay the tax. If so, the cost of collecting the tax would probably not be worthwhile. Abolition would be one possibility, while another would be increasing the tax take until it returned to something like its traditional share of tax revenues.
INTERNATIONAL
Greece has announced £4.4 billion of extra tax hikes and spending cuts as the country attempts to convince EU partners it is tackling its debt crisis.
Mail 4.3.10
VAT
The Government should broaden the VAT base and scrap planned tax increases on income and employment if it is to reduce the deficit without hindering economic recovery, says thinktank Reform.
Telegraph 5.3.10
Reform suggests the full rate of VAT should be imposed on food, the construction of new homes, children's clothes, electricity and gas. The £15 billion this is predicted to raise would mean the 50% income tax rate and 1% NIC increase would not be needed, encouraging investment in the UK and job creation.
More than 57,000 small businesses have been hit with higher tax bills after the Revenue increased the amount of VAT they have to pay under a flat-rate scheme.
Telegraph 5.3.10
Just as HMRC re-evaluated the flat rate scheme percentages in December 2008 to reflect the temporary reduction in the standard rate of VAT to 15%, the department has re-calculated the rates again to reflect the increased rate of VAT to 17.5%. The Revenue says it has also taken into consideration current various business patterns – as the taxman did in 2008.
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