In addition to the major announcements in the Spring Budget, we’ve summarised below the other key tax matters to be aware of in your business planning.

Tax avoidance

The Government will consult shortly on the introduction of a new criminal offence for promoters of tax avoidance who fail to comply with a legal notice from HMRC to stop promoting a tax avoidance scheme. The Government will also consult on expediting the disqualification of directors of companies involved in promoting tax avoidance including those who exercise control or influence over a company.

Additionally, it was announced that the Government will double the maximum sentences for the most egregious forms of tax fraud from 7 to 14 years.

Tonnage Tax

The Government continues to recognise the importance of the UK’s world-leading shipping and maritime services industries. From June 2023, for the first time in nearly 18 years, the Government will open an election window to permit shipping companies that left the Tonnage Tax regime to return to the UK, bringing with them investment and jobs. This follows reforms to the regime announced at Autumn Budget 2021, which aimed to increase the number of firms headquartered in the UK, following the UK’s departure from the EU.

Tackling the tax gap

The Government is investing a further £47.2 million to improve HMRC’s capability to manage tax debts. This will allow HMRC to better distinguish between taxpayers who can afford to settle their tax debts but choose not to, from those who are temporarily unable to pay, ensuring taxpayers are offered the right support. It will support taxpayers who are temporarily unable to pay by enhancing the online Self-Serve Time To Pay service, while also providing HMRC with additional capacity to ensure that those who can afford to settle their debts do so.

Plastic Packaging Tax rate

The Government will uprate the Plastic Packaging Tax rate in line with CPI, from 1 April 2023.

Get in touch

Read the rest of our Spring Budget analysis on our Budget Hub, and for more information or to discuss any of the announcements, please don't hesitate to get in touch with me or your usual Johnston Carmichael adviser.