New advisory fuel rates
HMRC has published the advisory fuel rates applying from 1 June 2024. The rates apply to employees using a company car. The rates should be used where the employer reimburses employees for business travel in their company cars or needs employees to repay the cost of fuel used for private travel.
Non-resident companies filing tax returns
HMRC has updated its guidance on the corporation tax online service to highlight an issue applying to non-resident companies. Some non-resident companies which do not have a UK permanent establishment have incorrectly claimed the small profits rate of corporation tax or marginal relief in their returns. Where an error has been made in a return, HMRC will correct the return and issue a notice of correction.
To avoid the error happening, the company should use type 2 (close investment-holding company) in box 4 of the return. The corporation tax online service will be updated in April 2025 to include a new company type for non-resident companies.
Refunds of voluntary Class 2 NIC
It is now possible to use HMRC’s online service to apply for a refund of voluntary Class 2 national insurance contributions (NIC). Separately, there are reports that some taxpayers who paid voluntary Class 2 NIC for 2022/23 have had the contributions repaid to them in error. It is understood that HMRC are looking into the issue.
Using email and Dropbox to deal with HMRC
HMRC has published a factsheet to help taxpayers decide whether they want to deal with HMRC electronically using email and Dropbox. Before email or Dropbox can be used, the taxpayer must read the risks detailed in the factsheet and confirm in writing that they understand and accept them. The factsheet is one of a number of compliance check factsheets published by HMRC.
Survey on guidelines for compliance (GfC)
GfC give HMRC’s view on complex, widely misunderstood or novel risks that can occur across tax regimes. HMRC recently published GfC5 to help taxpayers and agents manage risks in making a claim for capital allowances for expenditure on plant and machinery. HMRC has now published a survey seeking views on Gf5.
Tax Faculty
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