Highlights from the broader tax news for the week ending 20 March 2024, including: HMRC’s framework for large businesses; new secondary legislation applying across a range of areas, including the off-payroll rules; maps of investment zones; and updated guidance on genuine HMRC contact.
HMRC's framework for co-operative compliance
HMRC has published a set of principles that both HMRC and large businesses should apply to the way they work. The framework is used as part of HMRC’s existing approach to large business tax risk management.
Regulations provide for off-sets of tax under the off-payroll working rules
The Income Tax (Pay As You Earn) (Amendment) (No. 2) Regulations 2024 make provision for HMRC to off-set amounts of tax already paid by a worker and their intermediary on income from engagements under the off-payroll working (IR35) rules against a subsequent PAYE liability of the deemed employer in respect of the same income. The regulations come into force on 6 April 2024. ICAEW responded to the consultation on the draft regulations. HMRC has published guidance on the new rules at EIM10037-10039. For ICAEW guidance on the off-payroll working rules generally, see the dedicated webpage.
New secondary legislation across a range of areas
Regulations relevant to a range of areas have been made, including:
- The Annual Tax on Enveloped Dwellings (Indexation of Annual Chargeable Amounts) Order 2024. This states the annual chargeable amounts of the annual tax on enveloped dwellings (ATED) for the chargeable period beginning on 1 April 2024. This TAXline article provides more detail on ATED.
- The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024. The regulations make a number of changes in connection with the abolition of the lifetime allowance. For further details, see this TAXwire article.
Maps of investment zones published
HMRC has published maps of the Liverpool City Region, North East and West Midlands investment zones and the Inverness and Cromarty Firth Green Freeport.
Genuine HMRC contact
HMRC has updated its guidance on genuine HMRC contact to include research on the impact of making tax digital on taxpayers and information about understanding the use of the Lifetime ISA. Also, HMRC has updated its list of genuine letters to include the letter IDMS99P - simple assessment.
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