The KPMG Report Volumes I & II
Volume 1
KPMG Report Volume 1 (PDF 665K) is a good starting point for an overview of the model and the dynamics of the tax administration burden for UK business. The main body of Volume 1 provides a brief description of the background to the model, how the model was built, some examples of early analysis at a total level and a summary of the overall themes arising from business interviews. The report uses, from time to time, technical terms set out in the Standard Cost Model. The glossary to Volume 1 seeks to give a practical explanation to each term.
There are a series of Annexes:
KPMG Volume 1 Annexes
Volume 2
Volume 2 should be read in conjunction with Volume 1 for details of key terms used in the model and early analysis.
Volume 2 is in 28 Parts, one for each of the tax areas, described in further detail below. Volume 2 gives an overview of the administrative burden, early analysis and business feedback for each tax area. Volume 2 can only give a flavour of the model's potential. It is already clear that the early analysis may prompt further questions. The further detailed analysis looking at specific pieces of tax regulation will be done by HMRC as it takes the model forward, using the data framework.
The tax areas are:
KPMG Volume 2 Parts
- Part 1 - Aggregates Levy is collected on the commercial exploitation of rock, sand and gravel ('aggregate') in the UK (PDF 235K)
- Part 2 - Air passenger Duty: a duty charged on the carriage of passengers from UK airports on most types of aircraft (PDF 226K)
- Part 3 - Capital Allowances: relief given for capital expenditure on fixed assets (PDF 238K)
- Part 4 - Capital Gains Tax: a tax on gains on disposals of certain assets (PDF 236K)
- Part 5 - Climate Change Levy: a levy charged on the supply of energy sources such as natural gas and electricity (PDF 231K)
- Part 6 - Construction Industry Scheme: a scheme that tracks the payments to subcontractors within the construction industry, requiring an exchange of information, in the form of vouchers, between businesses engaging workers and those undertaking work (PDF 242K)
- Part 7 - Corporation Tax: a tax payable by all companies that are UK resident for tax purposes (PDF 271K)
- Part 8 - Customs: the framework of control, and tax where appropriate, the import and export of goods (PDF 251K)
- Part 9 - Double Tax Treaties: claims under the Double Tax Treaties either to make payments without deduction of tax, or to treat certain gains as non taxable (PDF 224K)
- Part 10 - EC Sales List: returns listing information which a business is required to provide to HMRC relating goods supplied to VAT registered businesses in other EU member states (PDF 227K)
- Part 11 - Employer Taxes: all taxes and National Insurance Contributions (NICs) on remuneration provided to employees, including payroll expenses and benefits, and share schemes (PDF 275K)
- Part 12 - Excise Duties: duties paid to HMRC by businesses when excise goods (including alcohol, tobacco products and hydrocarbon oils) are produced, sold or imported (PDF 254K)
- Part 13 - Gaming Duties: includes Bingo Duty, Gaming Duty, General Betting Duty, Amusement Machine Licence Duty, Pool Betting Duty and Lottery Duty (PDF 236K)
- Part 14 - Income Tax for businesses: income tax and NICs applicable to unincorporated businesses and partnerships including the Income Tax return. This also covers income tax related requirements for trusts and life assurance companies (PDF 256K)
- Part 15 - Inheritance Tax: a tax on individuals that occasionally gives rise to business obligations (PDF 219K)
- Part 16 - Insurance Premium tax: a tax on premiums received under insurance contracts collected by insurers 16 (PDF 230K)
- Part 17 - Intrastat: a system used for collecting statistics on the trade in goods between the UK and other EU member states 17 (PDF 233K)
- Part 18 - Landfill Tax: a tax on the disposal of waste accounted for to HMRC by landfill site operators (PDF 227K)
- Part 19 - Pensions: the rules applying to the eight different tax regimes for pensions (PDF 232K)
- Part 20 - Petroleum Revenue Tax: a tax that applies to oil companies and is charged on the share of the profits of each individual oil field (PDF 232K)
- Part 21 - Stamp Duty: a tax charged on legal transfer documents, other than the transfer of land (PDF 224K)
- Part 22 - Stamp Duty Land Tax: a tax on transactions involving UK land (PDF 234K)
- Part 23 - Stamp Duty Reserve Tax: a tax charged on transactions in shared effected without a paper document (PDF 220K)
- Part 24 -Tax Credits: income related payments to low-income workers, paid by employers to eligible employees with their wages (PDF 233K)
- Part 25 - Tax Management Provisions: this covers the general administration of income and capital gains taxes, in particular assessments, claims, appeals, payment, collection and recovery tax, interest on overdue tax and penalties. It also covers general information gathering powers, inspection of computer records, disclosure of tax avoidance schemes and applications for guidance under the 'COP 10' procedure (PDF 231K)
- Part 26 - Tonnage Tax: a regime that allows certain shipping companies to pay Corporation Tax based upon their shipping tonnage rather than their accounting profits (PDF 226K)
- Part 27 - Value Added Tax: a tax on consumer expenditure, collected on most types of business transactions (PDF 303K)
- Part 28 - Withholding Tax: covers the requirement to deduct tax from rent received, payments to entertainers and deduction of tax from interest and royalties (PDF 230K)
