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Tax news in brief

Author: ICAEW Insights

Published: 28 Jan 2025

Highlights from the broader tax news for the week ending 29 January 2025, including: an update on Finance Bill 2024-25; new HMRC guidance on labour supply chain assurance; and notification of a one-to-many campaign from HMRC

Finance Bill 2024-25

The government has tabled amendments to Finance Bill 2024-25 in a number of areas, including Pillar Two, the replacement of the special rules relating to domicile and employee ownership trusts (EOTs).

ICAEW has published a separate article explaining the government’s amendments to the draft legislation for EOTs. This article also explains the current status of Finance Bill 2024-25 and provides links to the relevant documents.

HMRC guidance on labour supply chain assurance

HMRC has published guidelines for compliance 12: Help with labour supply chain assurance. HMRC says that the guidelines are intended to:

  • promote the importance of effective labour supply chains (LSCs) assurance;
  • provide information for businesses to consider when reviewing their LSC assurance practices; and
  • improve understanding of risks and potential implications for businesses.

Further information

HMRC's publication About guidelines for compliance.

HMRC campaign: PSA calculations

HMRC is contacting employers by email who have made payments on account under pay as you earn (PAYE) settlement agreements (PSAs) but have not submitted calculations. The email encourages the employer to submit the calculations and explains how to do it. HMRC says that, if it does not receive the calculations, it may issue a determination. The emails are being sent as part of a one-to-many campaign.

Further information

Template email provided by HMRC

5 April deadline for pensions lifetime allowance

HMRC’s latest pensions newsletter contains a reminder of the 5 April 2025 deadline for applying for lifetime allowance protections and enhancements.

If an individual wants to claim fixed protection 2016, individual protection 2016 or international enhancements, they must apply by 5 April 2025.

Further details and the links to apply can be found in the online guidance. HMRC’s pension tax manual also provides technical information on fixed protections and enhancements.

Conference in support of tax charities

The Chartered Institute of Taxation is hosting a conference in support of the tax charities TaxAid and Tax Help for Older People. The conference - From sliding doors to success: safeguarding your practice for future success – will be broadcast live on 11 February 2025.

Learn more

Negligible value claims

HMRC has updated its list of shares which have been declared as being worth negligible value. The list is now valid up to and including 31 December 2024.

VAT and churches

The House of Commons Library has published the research briefing VAT and churches. The briefing explores the campaign for VAT relief on church repairs and the listed places of worship grant scheme, which has been extended to 31 March 2026.

International tax round-up

CFE Tax Advisers Europe has published its latest collection of tax top 5 developments. This includes updates on:

  • new OECD tools and guidance updates to support the administration of Pillar Two; and
  • developments concerning amount A and B of Pillar One.

 

Tax Faculty

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