ONLY 22 companies left the UK because of tax reasons in the past four years, the government has said.
Responding to a question from Conservative MP Mark Reckless, Exchequer secretary to the Treasury David Gauke said that 22 companies moved their headquarters away from the UK for tax reasons since 2007/08. Research taken by HM Revenue & Customs showed that ten left the UK in 2008/09, and seven the following year.
The most high profile of these were advertising company WPP, publishing firm UBM and pharmaceutical company Shire. WPP and UBM have said that measures in the Budget – including the cut in corporation tax and moves to reform the controlled foreign companies legislation – meant that it was likely they would move their tax base back to the UK from Dublin. Shire told Accountancy Age that it would “review these interesting proposals” before making a decision.
Bill Dodwell, head of tax at Deloitte, said that he would have guessed this number would be higher.
However, he added: “The problem is that several of those would be FTSE100 and others would be FTSE250. The key point is that if they didn’t come back, they would move further [functions] overseas.”
Making Tax Digital will impose significant additional tax compliance costs on small businesses for little or no medium term benefit, tax and small business experts told MPs
MHA MacIntyre Hudson has partnered with cloud accounting software provider Xero ahead of the government’s requirement for digital records
The drive towards a fully digital tax regime is an admirable one, but mandation is simply wrong, according to one of the UK's most senior tax technology practitioners - Paul Aplin
Does Darwin's theory apply to taxation? Colin ponders...