Manage your investments

In the challenging climate of Brexit negotiations, targeted long-term investment choices might offer the security for businesses mitigating financial uncertainty. Foreign direct investments (FDI) have fared well according to the Ernst and Young (EY) report for 2018.

Financial Conduct Authority regulatory changes may impact on Scotland’s attractiveness to foreign direct investment

Leading in attractiveness ahead of the UK average, Scotland expanded on foreign direct investment particularly in the Research and Development sector over 2017. However, firms must keep alert to the regulatory requirements of foreign investors in light of changes over Brexit.

The Financial Conduct Authority (FCA) highlights measures for operators applying to become a recognised overseas investment exchange (ROIE), in case existing regulation under the Markets in Financial Instruments Directive (MiFID) II serving the EEA financial market ceases to be recognised post-Brexit. This may directly impact the likelihood of securing a favourable deal with foreign investors in securing the liquidity of the business.

Ernst and Young Scotland Attractiveness Survey 2018

Nevertheless, the EY survey highlights positive potential for Scotland in the year ahead, summarising their findings with:

  • A new record for FDI projects in 2017 for the third consecutive year with an increase of 7% compared to 2016;
  • Scotland secures its position as the most attractive location in the UK for R&D projects for a second consecutive year with an increase of 70% compared with 2016;
  • The digital sector experienced a 56% increase in FDI projects and was the second largest sector to attract investment into Scotland behind business services;
  • Manufacturing activity experienced a 25% increase of FDI in 2017 compared to 2016;
  • 2nd place ranking, behind London, as the most attractive place to invest in the UK; and,
  • FDI job creation increased by 104%, from 3,131 to 6,374.

Effective risk management and business review can support the best-suited investment portfolio to steer your business through hard times.

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Business Financial Distress UK

Inquiry to Examine HMRC’s Approach to Tax Disputes

The UK Parliament’s Treasury Sub-Committee has launched an inquiry into HMRC’s approach to tax enquiries and tax disputes.

It highlights that in its code of governance for resolving tax disputes, HMRC outlines internal governance processes that are intended to ensure that it deals with all tax disputes fairly and in an even-handed manner.

The Sub-Committee’s inquiry aims to establish whether HMRC meets these standards in the way it conducts tax enquiries, resolves tax disputes and determines the amount of tax to be paid.

In particular, the Sub-Committee is seeking views on:

  • How do HMRC governance and settlement processes affect its ability to resolve tax disputes in a proportionate and fair way?
  • Does HMRC’s litigation and settlement strategy provide a rational and sound framework for resolving tax disputes?
  • Do HMRC’s collection and management powers set out in the Commissioners for Revenue and Customs Act 2005 provide HMRC with sufficient flexibility to achieve cost-effective and fair results?
  • Does HMRC’s approach to enforcing compliance with tax law, including its approach to penalties and other sanctions, result in disproportionate or unjust outcomes? If so, how can the situation be remedied?
  • Is there sufficient governance over the whole of HMRC’s enquiry process to ensure that HMRC’s interventions are well-targeted and that taxpayers are treated fairly and professionally throughout?
  • Do HMRC’s governance processes provide sufficient scrutiny and assurance for clearances and approvals given to taxpayers outside the formal enquiry process.

HMRC Aggressive Tax Demand Advice Glasgow Edinburgh & London

We understand that facing up to financial challenges can be extremely difficult and stressful. However, you should be reassured to know that there are options available and, with the right advice and support, you can take the necessary steps to improve your situation. For further information on our services then please contact us at an office near you.

Contains Parliamentary information licensed under the Open Parliament Licence v3.0.

HMRC Wins Tax Avoidance Case

HMRC has recently announced its success in a tax avoidance case worth £55 million that involved businesses issuing loan notes as bonuses to avoid tax.

According to HMRC, its legal victory over Cyclops Electronics and Graceland Fixing proved that a multi-million pound tax avoidance scheme used by over a hundred other businesses was a ruse to avoid paying tax.

The businesses used loan notes to pay company directors’ bonuses in an attempt to get around paying tax and National Insurance on their awards.

Specially created companies issued loan notes in £10 denominations that matched the bonus amount exactly. Special conditions were included to avoid the tax and National Insurance due when the loan notes were given to the director.

HMRC says the scheme was designed to take advantage of legislation that provides tax relief for genuine commercial transactions. This legislation has now apparently been amended to prevent similar situations arising in the future.

“We cannot allow tax avoidance schemes like these to deprive the UK of vital revenue,” said Penny Ciniewicz, HMRC’s Director General for the Customer Compliance Group. “The money we’ve protected in this case alone would be enough to pay the annual salaries of around 2,400 newly qualified teachers.”

HMRC says that it has won nine out of ten tax avoidance cases taken to court in the last two years, with many more settling before reaching that stage.

HMRC Tax Demand Advice Glasgow Edinburgh & London

We understand that facing up to financial challenges can be extremely difficult and stressful. However, you should be reassured to know that there are options available and, with the right advice and support, you can take the necessary steps to improve your situation. For further information on Alleged Tax Avoidance and Accelerated Payment Notices, please contact us at an office near you.

Assistant Manager at mlm Solutions Achieves Insolvency Exam Success

We are pleased to announce that Barry Mochan, Assistant Manager at mlm Solutions, has recently passed the Joint Insolvency Examination Board exams and is on course to become a fully qualified personal insolvency practitioner with our firm.

All of us here at mlm Solutions are delighted by Barry’s success and we look forward to welcoming him as an appointment taking member of the IP team in the near future.