HMRC cuts its interest rates
HMRC has revised its interest rates for late and early payments following the Bank of England (BOE) interest rate cut to 5%. From 20 August 2024, the main rate for late payments is 7.5% and the main repayment interest rate is 4%.
The change in the BOE interest rate has also affected the rates for save as you earn (SAYE) share option schemes. With effect from 16 August 2024, the five-year bonus rate is 3% and the early leaver rate is 1.33%.
HMRC updates its guidance on publishing a tax strategy
HMRC has updated its guidance for large businesses on publishing a tax strategy. Additional guidance has been added to explain the rules which apply to determine if a UK company which is part of a multi-national enterprise group must publish a strategy. Changes have also been made to the sections covering what must be in the strategy and when to publish future strategies.
New form for applying for a healthcare certificate
HMRC has replaced and updated the existing form to apply for healthcare cover in the European Union, Iceland, Liechtenstein, Norway or Switzerland (CA8454). A person may wish to apply for the S1 healthcare certificate for their dependents, or for themselves and their dependents, if they are taking maternity, paternity or adoption leave in those countries. HMRC has published an interactive guidance tool intended to help workers find the correct form to use, including the new CA8454.
How to report dividends and capital gains
Issue 56 of HMRC’s employment related securities bulletin includes guidance on calculating income tax on dividends and capital gains tax on the sale of shares. It also includes guidance on how to report dividends and capital gains to HMRC.
Updated HMRC guidance on avoidance and evasion
HMRC has published updated versions of the following documents:
- a list of litigation decisions where HMRC considered tax avoidance was involved; and
- details of live corporate criminal offences (CCO) investigations. The CCO rules make it a crime for corporations to fail to put into place reasonable procedures to prevent associated persons from criminally facilitating tax evasion. HMRC currently has 11 live CCO investigations and a further 28 live opportunities are currently under review.
International tax round-up
CFE Tax Advisers Europe (CFE) has published a summary of its top ten tax developments for July 2024.
Separately, Christos Theophilou has published an article explaining that groups with a presence in Cyprus should review their transfer pricing arrangements in light of recent developments.
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