Need to know

Chancellor statement: certainty on some mini-budget tax measures: New Chancellor Jeremy Hunt confirms off-payroll working will remain and that income tax rates will not change. 

Changes to SME limits – what might this mean for tax?: In a bid to stimulate growth and cut red tape, the government wants to redefine the definition of what constitutes a ‘small’ business.

New high court ruling has implications for sole directors: A recent case has held that in some circumstances a private limited company operating under Model Articles and having a sole director may take valid decisions. This is in contrast to an earlier case which (on somewhat different facts) had held that at least two directors would be required.

Updates to TRS guidance for excluded express trusts: HMRC has updated its Trust Registration Service (TRS) guidance to set out more information on how and when to register an excluded express trust, also known as a Schedule 3A trust.

Register for MTD now to continue filing VAT returns: HMRC will close the VAT online account for filing returns to most businesses from 1 November 2022.

HMRC contacts agents regarding closure of online VAT returns: HMRC confirms that businesses trading under the VAT registration threshold will retain access to online VAT return for a short period.

VAT: changes to notification process for opting to tax land and buildings: Following a trial, changes to how HMRC acknowledges an option to tax notification will become “business as usual”.

Changes to the main residential rates and bands of Welsh land transaction tax: The Welsh Government has announced changes to the main residential rates and bands of land transaction tax. The new rates and bands apply to transactions with an effective date on or after 10 October 2022.

HMRC’s proposals clash with growth and simplification agenda: HMRC’s overriding priority should be to improve its core customer service function so that the tax system works efficiently rather than dissipating scarce resources to collect data that is not required for the assessment of tax.

Member helpsheets and guidance

HMRC provides update on VAT Registration Service for agents: HMRC’s email to agents included an updated list of frequently asked questions about the new service.

HMRC’s latest Agent Update: ICAEW’s Tax Faculty highlights current issues and reminders for agents, including: residence and exceptional circumstances; unallocated payments on account; registering for plastic packaging tax; changes to MTD terminology for VAT; and reporting changes for a VAT-registered business.

Further agent guidance from HMRC: HMRC publishes guidance on what agents need to do when they restructure their firms and on registering clients for a new tax.

How to register clients for self assessment or as self-employed: Tax agents acting for individuals will no doubt be seeing a flurry of registrations required in the run-up to 31 January. ICAEW’s Tax Faculty recaps the main processes.

HMRC launches new guidelines for tax compliance: A new landing page has been launched that contains guidance on individual areas of tax compliance.

CGT 60-day reporting: New agent authorisation process for digitally excluded: HMRC has issued step-by-step guidance regarding new processes to allow agents to act on behalf of digitally-excluded clients in respect of capital gains tax (CGT) 60-day reporting.

Webinar: indirect tax benefits of operating in a freeport: Join ICAEW’s Tax Faculty for a webinar discussing the VAT and customs reliefs available in a freeport.

Consultations

ICAEW questions priority level for digitising business rates project: HMRC has been consulting on the introduction of a new digital platform where businesses would be able to view all of their tax and business rates liability details. ICAEW suggests that HMRC carries out a rigorous cost-benefit analysis of the project before deciding whether to proceed.

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