Arctic: same time next year?

Arctic: same time next year?

Director of Arctic Systems predicts problems for small family businesses when completing their tax returns next year

The disruption caused by the Arctic Systems case, which has thrown small
businessestax planning into disarray this month, could reappear in a year’s
time, a key player has warned.

Geoff Jones, the director of Arctic whose salary and dividend payments
provoked the row, told Accountancy Age that the legal process, launched
by HM Revenue & Customs last Friday might not come to a close until this
time next year.

The delay would create more problems for small family businesses when
completing their tax returns next year.

HMRC said on Friday it would be submitting a petition to appeal in the case,
in which it is trying to clamp down on companies it feels are avoiding tax.

The case surrounds the practice of paying profits earned by one spouse in a
business disproportionately to the other through dividends, to maximise
available allowances and tax rates.

Jones said: ‘I have been led to believe it could take as long as a year. If
that’s right, it could run right up against the buffers again next year.

‘It’s possible there will be this mad rush again,’ said Jones.

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource