Gas safe engineers
HMRC is contacting individuals who are registered with the Health and Safety Executive as gas safe engineers and may have taxable income to declare. This follows an earlier round of correspondence, in September 2024. The letter sets out the actions the individual should take next, including registering for self assessment if required.
IHT direct payment scheme extended
The direct payment scheme allows personal representatives (PRs) to instruct banks, building societies, or National Savings & Investments (NS&I) to transfer funds to HMRC in order to settle inheritance tax (IHT) liabilities. This is done using form IHT423. The funds can be released before the grant of probate has been obtained.
HMRC has announced that the direct payment scheme can now be used with investment providers, such as brokers, investment management firms and pension or life insurance providers. As participation in the direct payment scheme is voluntary, PRs should check with the investment firm before beginning the process.
HMRC has updated form IHT423 and its guidance on how to use the direct payment scheme for this change.
Changes to the law on tips
The Department for Business and Trade has published guidance on distributing tips fairly in view of the new tipping law (the Employment (Allocation of Tips) Act 2023), which came into effect on 1 October 2024. The law aims to ensure that 100% of tips, gratuities and services charges are allocated to staff in a fair and transparent manner.
The pay as you earn and national insurance position relating to this income continues to be dependent on the distribution method and is not directly impacted by the new rules (see HMRC’s guidance). However, employers should be aware of any potential difference in obligations should they choose to amend their current processes to account for the new legislation.
Safety and security declarations for imports
HMRC has updated its guidance to reflect the decision to extend the waiver for import requirements for goods from the European Union to 31 January 2025. ICAEW understands that HMRC will publish further information in the coming weeks.
Insolvency and plastic packaging tax
HMRC has introduced a new digital G-form which must be used to:
- notify HMRC of an insolvency event;
- submit plastic packaging tax returns; and
- deregister from plastic packaging tax
International taxes
Recent publications by CFE Europe include:
- a summary of five of the key tax developments in the period to 30 September 2024. This includes a letter written by US politicians to the Organization for Economic Cooperation and Development (OECD) to express opposition to the OECD's global tax deal;
- an opinion statement on the long-running state aid litigation involving Apple and Ireland; and
- an opinion statement responding to the European Commission's consultation on the evaluation of the European Union's anti-tax avoidance directive.
Tax Faculty
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