Need to know

HMRC closes SA helpline as ADL reopens: Highlighting the seriousness of HMRC’s resourcing problems, it has been announced that the self assessment (SA) helpline will be closed until September. The restrictions on the agent-dedicated line (ADL) have been removed from 5 June. Agents will be able to have self assessment queries answered on that line.

NAO and PAC scrutinise MTD progress and business case: The National Audit Office (NAO) has published a very critical report into HMRC’s progress with making tax digital (MTD). The report reflects many of ICAEW’s concerns and forms the basis of an inquiry by the Public Accounts Committee (PAC).

ICAEW joins newly formed E-Commerce Trade Commission: The E-Commerce Trade Commission will support small businesses to start or grow their export business.

Deadlin to fill gaps in NIC records for 2006/07 onwards extended to 5 April 2025: The deadline for eligible individuals retrospectively to fill gaps in their national insurance contributions (NIC) record for the period from April 2006 to April 2016 is being further put back to 5 April 2025.

Overlap relief – new form to help with move to tax year basis: This summer HMRC plans to launch an online form to deal with requests regarding overlap relief and the administration of basis-period reform.

HMRC to contact R&D tax relief claimants following compliance checks: HMRC is writing to approximately 200 companies who have made an error in their recent R&D tax relief claims. The correspondence will ask those companies to complete a questionnaire providing feedback on their experience of the process.

HMRC invites UK residents to come clean over overseas tax affairs: A new one-to-many compliance campaign is targeting taxpayers named in the Pandora Papers. It invites them to make use of the contractual disclosure facility (CDF) or the worldwide disclosure facility (WDF).

ICAEW responds on simplifying income tax administration: HMRC’s discussion document on simplifying income tax administration covers several disparate topics. ICAEW’s response agrees that improvements are possible if HMRC has the resources to develop its digital services and the needs of agents are considered.

UK Internal Market Scheme replaces UK Trader Scheme from September: The Internal Market Scheme will replace the UK Trader Scheme on 30 September 2023. It will allow traders moving goods to Northern Ireland from Great Britain to demonstrate that the goods are not at risk of moving to the EU.

Treasury Committee reports on abolition of the OTS: The House of Commons Treasury Select Committee calls for enhanced accountability of government efforts to simplify the UK’s overcomplicated and burdensome tax system. The abolition of the Office for Tax Simplification (OTS) is due to be given statutory effect by the enactment of Finance (No. 2) Bill 2023.

HMRC launches self-serve time to pay for VAT: Certain businesses can now set up a VAT payment plan online.

ICAEW supportive of expanding the cash basis for the self-employed: ICAEW’s Tax Faculty supports the extension of the cash basis, but warns that reliance on it could jeopardise the accuracy of accounting records kept by businesses.

Member helpsheets and guidance

How do ICAEW’s CPD changes apply to members working in tax?: Tax work has been divided into three categories under the revised Continuing Professional Development (CPD) Regulations, each with its own requirements. Find out what category your role falls into ahead of the changes coming into force.

How to identify and report scams to HMRC: HMRC has issued a scam warning to individuals who receive tax credits, urging them to be alert to people trying to steal their information. ICAEW’s Tax Faculty recaps how to identify and report a scam to HMRC.

HMRC publishes new Charities newsletter: HMRC’s Charities newsletter will be published periodically to update charities and their advisers on upcoming changes relating to tax that may affect them.

HMRC publishes revised Code of Practice 9: HMRC has updated its code of practice that provides taxpayers with an opportunity to bring their UK tax affairs up to date on a civil basis, as opposed to criminal basis.

Developing Countries Trading Scheme launched: The new Developing Countries Trading Scheme replaces the UK Generalised System of Preferences.

Consultations

HMRC consults on voluntary standard for customs intermediaries: The government’s proposal aims to improve the quality of service provided across the customs intermediary sector.

Consultation on share incentive schemes: HM Treasury is consulting on the non-discretionary tax-advantaged employee share schemes save as you earn (SAYE) and share incentive plan (SIP).

ICAEW welcomes off-payroll working set-off proposals: HMRC’s consultation proposes offsetting taxes overpaid by different parties in the labour chain when an off-payroll working employment status determination has been corrected.

Non-compliance in the umbrella company market: The government is consulting on proposals to regulate umbrella companies for employment rights and on options to tackle tax non-compliance.

ICAEW highlights uncertainty in tax on environmental schemes: Responding to HMRC’s consultation on environmental land management schemes and ecosystem service markets, the Tax Faculty emphasises that any tax reliefs or incentives must be part of a coherent wider strategy.

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