Introducing a new Landline Duty
A consultation document on the proposed new Landline Duty has been published. The new duty is intended to fund the roll-out of superfast broadband known as ‘Next Generation Access’ to 90% of the country by 2017.
The deadline for responses to the consultation is 12 February 2010. The document is likely to be of interest to communications businesses, trade bodies and others with an interest in the taxation of landlines.
The consultation includes draft legislation for the proposed Landline Duty and also includes chapters on the design of the new duty, the administration of the duty and a summary of key questions to elicit feedback on different aspects of the proposlas.
There are 3 specific questions related directly to the implementation of the new duty:
- The first tax return will cover the period from 1 October 2010 to 31 March 2011.
Does this cause line owners any problems?
- Are there any reasons why line owners will not be able to deliver a return and
payment to HMRC on or before 30 April 2011?
- Are there any problems caused for line owners if the accounting period for the duty
is annual? Would owners find it helpful to have any other accounting schemes available?
Once the consultation period is over further details are likely to be provided in the run up to the 2010 Budget.