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Archive for Clifford Frank

HMRC Cryptoassets: Taxation Of Individuals

HMRC Cryptoassets: Taxation Of Individuals

Cryptoassets and underpinning them distributed ledger technology have attracted significant attention globally. Spread of transactions with cryptoassets caused countries to develop their own strategies in the legal regulation and tax treatment of cryptoassets and dealings with them.

This article provides an overview of cryptoassets and the underlying technology, represents the main activities with cryptoassets focusing on cryptocurrencies, i.e. Bitcoin, Litecoin and equivalents. Despite the absence of their support by central banks or other central bodies cryptocurrencies are commonly used as means of exchange or for investment.

The nature of cryptocurrencies and the types of transactions with them determine their tax treatment. The article considers the position of HMRC that denies the recognition of cryptocurrency as of currency or money and highlights the intangible nature of cryptoassets.

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U.K. Tax Management: What Is Due To Caesar Is Rendered Unto Caesar

U.K. Tax Management: What Is Due To Caesar Is Rendered Unto Caesar

Tax management benefits are peace of mind for the entrepreneurs,
knowing that their tax affairs are managed, filed timely and financial provisions are made to ensure that what is due to Caesar is rendered unto Caesar.

In short, every business, whether incorporated or not, must take appropriate steps to ensure that its affairs and accounting records are structured in a manner that will enable it to comply with its statutory tax reporting obligations. A company must file a tax return within 12 months after the end of its accounting period in the UK. However, if it has a liability to pay tax, that liability must be paid within 9 months and 1 day after the end of its accounting period. Thus, careful tax management is essential.

What is the objective of tax management?

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Trading With Or From The UK With The EU: What You Need To Know And Be Ready For

Trading With Or From The UK With The EU

1. Removing the €22 VAT exemption for imports
The exemption for goods valued up to €22 no longer applies. Therefore, VAT will be charged on imports to the EU regardless of value.

VAT will apply at the rate of the buyer’s country of residence. It is different for every EU country: for example, Italy – 22%, France – 20%, Germany – 19% etc.

2. One-Stop-Shop (OSS) and Import One-Stop- Shop (IOSS)
OSS and IOSS. The EU will introduce two measures to assist e-commerce, two “one-stop-shop” procedures, which will allow e-sellers to consumers to account for VAT, without the need for multiple EU VAT registrations, from July 1, 2021.

a) One-stop-shop (OSS) will be applied firstly for EU countries. This OSS return is an extension of the existing EU MOSS system for digital services.

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United Kingdom: Inheritance Tax Tips To Save Money

United Kingdom: Inheritance Tax Tips To Save Money

You can legitimately plan and manage your tax and save money to survive and thrive.

Inheritance tax receipts in the United Kingdom amounted to approximately 5.32 billion British pounds in 2020/21. The standard rate of inheritance tax is 40% of any amount over £325,000. Each year, approximately 24,500 estates are required to pay this amount1.

If you are running a business, have personal investments, or should you wish to opt-out of the statistics, plan your tax affairs, this article takes you back to the helpful basics.

Here are the 9 Simple and overlooked Tax saving tips for UK individuals you should know.

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Trading With Or From The United Kingdom With The European Union: What You Need To Know And Be Ready For

Trading With Or From The UK With The EU

On July 1, 2021, the European Union will introduce changes to the existing VAT regime that will impact UK-EU trade. This memo covers the key points that will affect UK-EU trading that you should be aware of.

1. Removing The €22 VAT Exemption For Imports

The exemption for goods valued up to €22 no longer
applies. Therefore, VAT will be charged on imports to
the EU regardless of value.

VAT will apply at the rate of the buyer’s country of
residence. It is different for every EU country: for example,
Italy – 22%, France – 20%, Germany – 19% etc.

2. One-Stop-Shop (OSS) and Import One-Stop-
Shop (IOSS)

Read more

Crypto Assets: Taxation of Individuals In The UK

Crypto Assets

Cryptoassets and underpinning them distributed ledger technology
have attracted significant attention globally. Spread of transactions
with cryptoassets caused countries to develop their own strategies in the legal regulation and tax treatment of cryptoassets and dealings with them.

This article provides an overview of cryptoassets and the underlying
technology, represents the main activities with cryptoassets focusing
on cryptocurrencies, i.e. Bitcoin, Litecoin and equivalents. Despite the absence of their support by central banks or other central bodies
cryptocurrencies are commonly used as means of exchange or for
investment.

The nature of cryptocurrencies and the types of transactions with
them determine their tax treatment. The article considers the
position of HMRC that denies the recognition of cryptocurrency as of
currency or money and highlights the intangible nature of
cryptoassets.
Read more

Permanent Establishment or Not?

Permanent Establishment or Not?

When it comes to tax, trading internationally from a fixed place of business is quite confusing and daunting. If you are trading abroad, the location where the business is wholly or partially conducted can inadvertently create a Permanent Establishment (PE). With different examples, this document will explain how a PE is created and provide a high-level overview of the hidden traps that can trigger a PE.

When it comes to tax, trading internationally from a fixed place of business is quite confusing and daunting. If you are trading abroad, the location where the business is wholly or partially conducted can inadvertently create a Permanent Establishment (PE). With different
examples, this document will explain how a PE is created and provide a high-level overview of the hidden traps that can trigger a PE.

Read more