Tax news in brief

New HMRC guidance for compliance

HMRC has published guidelines for compliance (GfC) covering transfer pricing and VAT compliance controls. HMRC says that GfC “offer HMRC’s view on complex, widely misunderstood or novel risks that can occur across tax regimes” and “include best practice examples to follow”. The full collection of GfC can be found on gov.uk.

Changes to HMRC's bank details

HMRC has advised that its bank accounts have changed for the following:

• customs declaration service;
• plastic packaging tax;
• biofuels for gas or road use - fuel duty;
• economic crime levy;
• soft drinks industry levy; and
• trust registration penalty.

Taxpayers making payments by Faster Payments, Bacs or CHAPS should use the new details. Taxpayers who pay by Direct Debit do not need to take any action.

Register for ITSA by 5 October

HMRC is reminding taxpayers who need to register for income tax self assessment (ITSA) for 2023/24 to do so by 5 October 2024. HMRC has provided an online tool which can be used to check if a tax return is required for 2023/24.

HMRC guidance on registering for corporation tax

HMRC has published guidance on registering for corporation tax for the following entities:

• a UK resident, non-UK incorporated company that is not required to register with Companies House;
• a non-UK resident company trading in the UK through a dependent agent permanent establishment;
• a non-UK resident company who disposed of UK property or land; and
• a non-UK resident company dealing in or developing UK land or property.

The guidance explains the circumstances in which the entity should register for corporation tax, the deadline for doing so and how to register.

Updated agent authorisation letters

HMRC has updated the letter sent to taxpayers when they authorise an agent to act on their behalf via the online agent authorisation service. HMRC says that the changes are intended to clarify the role of the agent. In particular, the letter “reinforces the fact that the customer remains responsible for their own tax affairs”.

HMRC introduces branded messages

In October 2024, HMRC will begin replacing some of the texts and SMS messages sent to taxpayers with branded messages. HMRC says that branded messages use some of the features of rich communications services, which “modernises and improves SMS messaging”. Although HMRC believes that branded message are more secure, it is advising taxpayers to continue to follow HMRC’s advice on identifying suspicious contact.

Lifetime allowance abolition and RTI

HMRC intends to hold a workshop in early October 2024 to look at changes to real time information (RTI) and how to report relevant lump sums through RTI from April 2025. Further details are provided in the latest edition of HMRC’s Pension schemes newsletter.

In the newsletter, HMRC encourages pension scheme administrators to migrate their pension schemes to the Managing pension schemes service, and to help HMRC improve the service by joining the user panel.

Update on the public service pensions remedy

HMRC has published the latest issue of its Public service pensions remedy newsletter. In the newsletter, HMRC has confirmed that the service used to correct the tax position where a person has been affected by the public service pensions remedy is now available following a temporary closure, and that HMRC has made a number of improvements to it.

Guidance on interest paid to members in relation to the public service pensions remedy is included as an appendix to the newsletter. In the guidance, HMRC confirms that the interest is treated as savings income for the tax year in which it was received, and explains how to calculate any tax due and report the interest to HMRC.

Implementation of Windsor Framework delayed

The Windsor Framework introduces new rules for moving goods between Great Britain and Northern Ireland. The new rules were planned to start on 30 September 2024 but have now been postponed to 31 March 2025. HMRC states that this delay will allow businesses more time to prepare. The government will support businesses through webinars and the Trader Support Service, which will continue throughout 2025. Businesses are advised to be fully prepared for the new start date. Further guidance will be posted on gov.uk in due course.