Highlights from the broader tax news for the week ending 27 March 2024, including: NIC cuts effective from 6 April 2024; guidance on full-expensing; statutory notices to be sent to fishing boat owners; VAT refunds for museums and galleries; and how to recognise genuine contact from HMRC.
National Insurance Contribution (NIC) cuts effective from 6 April 2024
The National Insurance Contributions (Reduction in Rates) Act 2024 received Royal Assent on 20 March 2024. The Act legislates for the NIC changes announced at the Spring Budget 2024, including the cuts in employees’ class 1 NIC and class 4 NIC for the self-employed with effect from 6 April 2024. See also HMRC’s Rates and thresholds for employers for 2024/25.
HMRC guidance on full expensing
HMRC has published guidance on the 100% first-year allowance referred to as full-expensing and the 50% first-year allowance for special rate plant and machinery. The guidance is intended to help taxpayers to determine if they can make a claim and to make the appropriate adjustments on the disposal of an asset in respect of which a claim has been made.
Fishing boat owners to receive Schedule 23 notices
HMRC has updated its guidance on the tax rules for a share fisher to include more information on Schedule 23 notices. In April 2024, HMRC will send statutory notices to fishing boat owners requesting information for 2022/23 and 2023/24. HMRC’s guidance explains what information is required and how and by when to comply with the notice.
VAT refunds for museums and galleries
HMRC is seeking feedback on draft legislation to update the VAT refund scheme for museums and galleries. The draft legislation removes bodies that are no longer eligible for the refund scheme, adds newly admitted bodies, and updates the details of existing members. Affected institutions are encouraged to review the draft legislation and provide feedback to HMRC by emailing s33avat.museumsandgalleriesconsultation@hmrc.gov.uk by 19 April 2024.
Genuine contact from HMRC
Between 2 April and 2 August 2024, HMRC may contact people who have attended one of its webinars. The contact will be made by email and the person will be asked to provide feedback on the webinar by clicking on a link to complete a survey. See here for further information.
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