Need to know

HMRC suspends payment of some R&D tax credits: HMRC places certain research and development claims on pause while it investigates irregularities in a bid to mitigate abuse of the relief.

IR35: fundamental problems remain, says ICAEW: Tax Faculty recommends restricting or removing fiscal incentives to arbitrage employment status.

Ukraine crisis: tax and NIC treatment of employees relocating: How do the rules operate for displaced employees and those relocating to the UK? ICAEW’s Tax Faculty provides a summary.

File CGT property disposal returns before SA returns: HMRC is reminding taxpayers and agents that CGT UK property returns must be filed before the relevant self assessment return. ICAEW’s Tax Faculty provides some updates on the requirement to file CGT returns within 60 days of completion.

Four months to register non-taxpaying trusts: The April 2022 edition of HMRC’s trusts and estates newsletter highlights the 1 September 2022 deadline for registering non-taxpaying trusts and includes other useful updates on capital taxes.

Further postponement of border controls for goods imported from the EU: No additional border controls until the end of 2023.

UK Reporting by digital platforms to start on 1 January 2024: HMRC confirms to ICAEW that the start date will be a year later than originally planned.

HMRC advises against sharing sign-in details: HMRC is advising individuals not to share sign-in credentials, even with their agent, and is asking agents not to ask for these details.

Changes to allocation of tax cases to categories in the tax chamber: How cases will be allocated before the First-tier Tribunal is changing from 1 June 2022. ICAEW’s Tax Faculty explains the changes.

PAC report lambasts HMRC over IR35 implementation: HMRC needs to demonstrate that IR35/off-payroll working can operate effectively and fairly in the real world and investigate whether the costs and unintended consequences are proportionate to the additional tax revenue that the reforms raise.

Member helpsheets and guidance

IFAC issues crime trends guidance: In the ninth instalment of Anti-Money Laundering: The Basics (AML 9), IFAC and ICAEW look at the tools that accountants possess, to help them in combatting economic crime.

Provisional figures arising from basis period reform: HMRC explores options: Views are being sought until 27 May 2022 on the methods that owners of unincorporated businesses with accounting year ends that differ from the tax year end could use to correct estimates in their tax returns.

How to improve PAYE and benefit-in-kind processes: ICAEW’s Tax Faculty sets out its recommendations in response to the Office of Tax Simplification’s PAYE evaluation report to help ensure that employee tax and NIC calculations are right first time.]

VAT: HMRC guidance on DIY Housebuilders scheme claims: Guidance clarifies when subsequent claims might be accepted following a First-tier Tribunal decision.

VAT: HMRC abolishes requirement for domestic reverse charge sales lists: The requirement to submit reverse charge sales lists for sales of mobile phones and computer chips will be abolished with effect from 1 July 2022.

Might a budget payment plan help your self assessment clients?: HMRC is promoting the benefits of early filing of tax returns including the budget payment plan.

MTD ITSA April 2022 update: Latest information from ICAEW’s Tax Faculty on Making Tax Digital for income tax self assessment: FAQs, joining the pilot and MTDtalk.

Join ICAEW’s latest basis period reform webinar: ICAEW’s Tax Faculty is hosting a webinar to explore HMRC’s options for easing the burden on business owners who may need to submit tax returns from the 2024/25 tax year using estimated figures.

Consultations

ICAEW responds to consultation on proposed UK online sales tax: Taxation of the digital economy and e-commerce transactions should be considered without reference to the debate around the imbalance of business rates for ‘bricks and mortar’ businesses, says ICAEW.

ICAEW makes recommendations for ‘Future of work review’: The review into the future of work needs to consider tax/NIC, employment status and cover all four nations of the UK.

Government consults on low-income trusts and estates exemption: The £100 exemption for low-income trusts and estates is to be extended beyond the existing concession to cover all types of income. The government is consulting on the precise form and level of the exemption before including the measure in a future finance bill.

Consultation on EU-wide system for withholding tax on dividends and interest payments: The European Commission is considering three options and seeking opinions and experience on problems caused by the existing withholding tax systems, operated by individual member states.

European Commission to consult on regulatory framework for tax intermediaries: A public consultation is expected in due course.

Treasury invites views on reforming UK capital allowance regime: Chancellor Rishi Sunak wants businesses “to have their say” in how investment taxes should be reformed to “drive and sustain growth in the UK”.

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