More pillar two guidance from HMRC
HMRC has published guidance on the multinational top-up tax and domestic top-up tax, and is inviting comments from stakeholders.
This release of HMRCs draft manual includes all previously released pages (updated in some cases) and newly drafted pages. HMRC advises that the remaining draft guidance on flow-through entities, joint ventures, the insurance sector, additional top-up amounts, and the undertaxed profits rule will follow in due course.
ICAEW has published TAXguide 06/23: A basic guide to pillar two.
Service for providing R&D tax relief information
HMRC’s has advised that the service for submitting information in support of a claim for research and development (R&D) tax relief has been updated to:
- enable users to provide additional information for R&D mergers and enhanced R&D intensive support; and
- allow companies to register in Northern Ireland.
Zero VAT rating for caravans
The Value Added Tax (Caravans) Order 2024, SI 2024/910 has been made with the intention of ensuring that caravans manufactured to the updated British Standard Institution (BSI) standard (BS3632) can qualify for the zero rate of VAT. The legislation comes into force on 30 September 2024. For further information, see the policy paper published by the government.
Changes to excise goods legislation for Northern Ireland
Legislation coming into effect on 1 October 2024 makes a number of changes to the holding and movement of excise goods legislation applicable in Northern Ireland. The government states that the purpose of the legislation is to make “technical fixes to the statute book to better implement the EU excise provisions applicable in Northern Ireland under the Windsor Framework of the EU Withdrawal Agreement”.
Further information:
The Excise Duties (Northern Ireland Miscellaneous Modifications and Amendments) (EU Exit) (Amendment) Regulations 2024, SI 2024/941
Policy paper
Update on trader support service
HMRC has confirmed that a competitive procurement exercise for the next phase of the Trader Support Service (TSS) will begin by early 2025 to deliver support from 2026, and that the current TSS has been extended to the end of 2025.
The TSS is intended to guide businesses that move goods in or out of Northern Ireland through any changes due to the implementation of the Windsor Framework. Businesses can learn more about, and sign up for the TSS on gov.uk.
Economic crime levy
The economic crime levy (ECL) is an annual charge on entities that are supervised under the money laundering regulations and have annual UK revenues in excess of £10.2 million. An ECL return must be submitted, and the levy paid by 30 September each year.
HMRC is writing to entities it thinks should have paid the levy for 2023 but have not done so. HMRC will begin by contacting entities that it supervises under the money laundering regulations. It will write to entities supervised by other bodies later in the year.
See gov.uk for guidance on how to pay the ECL.
Update form parliament
The Budget Responsibility Act 2024 received Royal Assent on 10 September 2024. In July 2024, the government explained that the legislation was intended to ensure that “future fiscal announcements making significant, permanent tax and spend changes” will be “subject to an independent assessment by the OBR”.
Dame Meg Hillier MP has been elected chair of the House of Commons Treasury Select Committee, and Sir Geoffrey Clifton-Brown MP chair of the Public Accounts Committee.
HMRC webinars
Live webinars aimed at tax agents will be delivered by HMRC on the following topics:
- the new merged scheme for R&D tax relief: 26 September and 3 October 2024; and
- applying the VAT reverse charge for construction services: 26 September 2024.
HMRC also provides access to recorded webinars across a range of topics.