Tax exemptions for postmasters
Regulations have been made which exempt payments made under the Horizon Convictions Redress Scheme and the Horizon Shortfall Scheme (HSS) Fixed Sum Award from income tax, national insurance contributions (NIC) and capital gains tax. In addition, the payments are relieved from inheritance tax, and HSS Fixed Sum Award payments are exempt from corporation tax.
The regulations come into force on 16 August 2024, and have retrospective effect from 13 March 2024 for tax purposes. HMRC will use its collection and management powers to not collect NIC on payments made before 16 August 2024.
Further information
The Horizon Convictions Redress Scheme and Horizon Shortfall Scheme Fixed Sum Award (Tax Exemptions and Relief) Regulations 2024, SI 2024/818
The Social Security (Contributions) (Amendment No. 4) Regulations 2024, SI 2024/822
Making Tax Digital (MTD) Private Beta Testing
HMRC has updated its MTD guidance to make it clear that when volunteering to join private beta testing you have to sign up all relevant income sources. This means that it is not possible to sign up only one of multiple trades, and if a taxpayer has income from self-employment and property both must be signed up.
The HMRC guidance on agent authorisation has been updated but is still rather unclear. The key point is that, if an agent is already authorised for self assessment and the government gateway account for the relevant HMRC online services for agent is linked to the agent services account, the agent authorisation will be copied across. This is not clear in the agent services account which shows which credentials are linked but not which clients have been copied across. Linking government gateway accounts is dynamic and works even if a self assessment authorisation is set up after the two accounts were linked.
Further information: Signing up for MTD | ICAEW
Voluntary Class 2 NIC for 2022/23
HMRC has provided an update on the issue outlined in the article Voluntary class 2 NIC repaid in error | ICAEW. HMRC has now been able to identify the 8,000 individuals affected by this HMRC error and will write to them in September 2024 to explain how to reinstate the voluntary class 2 national insurance contributions (NIC) for 2022/23. The process is cumbersome, but it is none the less important for individuals to monitor and manage their NIC record to avoid losing out on state retirement pension in the future.
New HMRC public service pensions remedy newsletter
HMRC has published its public service pensions remedy newsletter for July 2024. The newsletter includes an update on work to improve HMRC's calculate your public service pension adjustment service, which is temporarily closed.
International tax round-up
CFE Tax Advisers Europe (CFE) has published a summary of its top five tax developments for the period to 29 July 2024. This includes a summary of the Organisation for Economic Co-operation and Development’s report on taxation presented to the finance ministers and central bank governors at the G20 meeting held in Brazil last week.
Tax Faculty
This guidance is created by the Tax Faculty, recognised internationally as a leading authority and source of expertise on taxation. The Faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.