Sohail will be going down to London on Budget Day March 19th to prepare a newsletter summarising the major budget changes. This year’s Budget could contain some very significant changes in tax law which will affect a large group of tax payers.
In the Autumn Statement the Chancellor indicated that there were potentially some major changes that may become law in this Budget. The Inland Revenue have concluded that a number of partners who are assessed to tax on a self employed basis are in reality employees and should be taxed accordingly as if they were employees.
The Inland Revenue are seeking to give themselves more power to decide when tax is due in a particular set of circumstances and leave the tax payer to challenge the ruling. At the present time, both the Inland Revenue and the tax payer can present their case to the Courts who then decide on the outcome and thus determine who is correct. If the Inland Revenue are able to in effect act as judge and jury leaving the tax payer to fight the decision that they have come to through the Courts, the tax payer’s position in practice will be seriously weakened.
At present the taxpayer and the Inland Revenue are in an equal position before the law, before any decision is reached. However, post the suggested change the Inland Revenue will be in a much stronger position.
