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Tax news in brief

Author: ICAEW Insights

Published: 29 Oct 2024

Highlights from the broader tax news for the week ending 30 October 2024, including: a MTD ITSA event organised by HMRC; an online tool for taxpayers from HMRC; and an update from HMRC on tax avoidance schemes.

HMRC MTD ITSA event

HMRC is hosting a Making Tax Digital income tax self assessment (MTD ITSA) event in London (HMRC, 1 Ruskin Square, Croydon, CR0 2WF) on Thursday, 5 December 2024.

HMRC says that the event is for agents and software developers who have clients who will need to use MTD ITSA. At the event they will find out more about the testing phase, have access to hands-on support to sign up to testing, and be able to ask HMRC questions.

Anyone interested in attending should email mailboxmakingtaxdigital@hmrc.gov.uk no later than 29 November 2024 to secure their space. By emailing HMRC, the person is agreeing to be contacted by HMRC before, during and after the event.

Visit ICAEW’s MTD hub to learn more about MTD ITSA.

Check if additional income is taxable

HMRC has published an online tool to help individuals check if they need to pay tax on income they’ve received outside of their employment. This includes income from renting out property, selling goods or services and creating online content.

HMRC Spotlight: The Partnership Model

HMRC has warned taxpayers of the dangers of implementing arrangements referred to as “The Partnership Model”. HMRC says that the arrangements, which involve the creation of a limited liability partnership to reduce liabilities to corporation tax and pay as you earn deductions for income tax and national insurance contributions, do not work.

Pensions Lifetime Allowance (LTA) abolition

HMRC’s latest newsletter for pension scheme providers explains the recent changes made by secondary legislation which are intended to complete the work to abolish the LTA. The regulations have effect from 18 November 2024 and once effective, apply retrospectively from 6 April 2024. The newsletter also includes guidance on how to report amounts through the payroll.

Update for ISA managers

HMRC has published the latest issue of its tax-free savings newsletter. The newsletter is intended to provide updates for individual savings account (ISA) managers and child trust fund (CTF) providers. It includes articles on recent changes to the rules to allow certain fractional interests to be bought in ISAs and CTFs, and to clarify the legislation applying to partial transfers of current year subscriptions.

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