Anthony Newgrosh, Partner in our business tax team, has been interviewed by Tax Journal about his work at BKL and his perspective on the world of tax.
What’s keeping you busy at work?
Now that the Budget is out of the way, I am doing a lot of work for insolvency practitioners. It always amazes how many nuances there are in the field of tax and every case seems to throw up something new.
What do you know now that you wish you’d known at the start of your career?
For an industry with such a staid reputation, it is remarkable how much of my personal and professional pride is built upon the relationships I have built up over the years. I’ve met some remarkable people, seen the development of some brilliant businesses and had the opportunity to travel to far-off places. So my advice to those starting their careers would be to enjoy it and make the most of the opportunities afforded to you without fear of failure. And treat everyone with the respect you would like to receive as the accountancy field is a very small world.
Are there any new rules that are causing a particular problem in practice?
The Budget was surprisingly quiet on business tax (although I suspect that there will be more anti-avoidance provisions to follow). But the reintroduction of associated company rules, combined with increasing rates of interest on overdue tax, is creating difficulties. Close investment holding companies are also back – this all feels like an unnecessary complication.
Has a recent change in HMRC practice impacted your work?
The changes to R&D tax credits have been well documented. The merger of the two regimes is a welcome simplification, but we still have the legacy SME regime for R&D intensive businesses, which seems somewhat counter-productive.
I also have every sympathy with HMRC seeking to clamp down on rogue R&D traders and dubious claims, but this is causing real difficulties with clients and many who are genuinely entitled to relief are being scared off.
We have had cases of enquiries being opened many months after repayments have been made and this feels a little like retrospective taxation when the claims were submitted in good faith and in line with what appeared to be Government policy at the time.
In my view, I’d like a more collaborative approach where we can resolve outstanding matters via a meeting, ideally face to face but even over Teams, rather than rounds of correspondence. More individual accountability from inspectors dealing with each claim would also be welcome, just like the good old days but maybe I am just showing my age!
What are clients currently asking about?
The hike in employers’ NICs [National Insurance Contributions] has led to many clients wishing to revisit partnership structures.
We are mindful of the salaried partner rules and HMRC’s revised guidance at PM259200 concerning capital contributions designed solely to avoid deemed employment (in light of the BlueCrest case).
So having spent significant time over the past few years looking at incorporations (and we are still little nearer having definitive guidance on what is a ‘business’ for these purposes), we may have come full circle. It all helps to keep us busy, but clients would like some stability and certainty.
And finally, you might not know this about me but…
I have been to Iceland 18 times now and contributed to the Lonely Planet guide there. I even corrected the Icelandic Government’s Covid travel guidance which (with a bit of help from Google Translate) I had spotted was inconsistent. The amendment was made within 24 hours – if only our Government was as efficient!
And if you don’t like my BKL webinars, you can instead find me as a regular contributor to The Man City Show podcast. Plenty to talk about at the moment!
This interview was first published in Tax Journal Issue 1689 and is available on the Tax Journal website.
Whether you’re the owner of a limited company, partnership, limited partnership, LLP or a sole trader, Anthony and our business tax experts are here to help. Our experience covers property, financial services and many other sectors. Find out more here.