Need to know

When are HMRC staff on strike?: Members of the Public and Commercial Services (PCS) Union working in East Kilbride and Newcastle on employer PAYE were asked to strike on various dates from 10 May, returning on 5 June 2023.

Government responds to professional bodies on HMRC service standards: The government has responded to an open letter to the Chancellor on HMRC service standards. The letter emphasises that digital services are the key to improved HMRC performance.

P11Ds: filing online when a different agent is authorised for PAYE: Many employers will outsource their payroll to one agent but use another for P11D reporting. As HMRC systems do not have the functionality to recognise multiple agents for the same head of duty (eg, employers’ PAYE), concerns have been raised about how agents in this situation can submit P11Ds online for clients. ICAEW’s Tax Faculty shares the solution.

HMRC additional needs working group: The Tax Faculty takes part in many HMRC engagement forums, one of which is the additional needs working group (ANWG). The ANWG enables dialogue between HMRC and interested parties regarding taxpayers and agents who may need additional support to access HMRC services.

ICAEW calls for fresh thinking on MTD ITSA policy: ICAEW has written to HMRC as part of its engagement on the review of how MTD ITSA could be shaped to suit the needs of smaller self-employed and property businesses.

HMRC to close VAT registration helpline from 22 May 2023: HMRC plans to free up helpline resources to work on processing VAT registration applications.

ICAEW responds to proposed revisions to Ethical Code: The Tax Faculty’s response provides a detailed analysis of the proposed revisions to the Ethical Code published by the International Ethics Standards Board (IESBA) compared to the UK’s Professional Conduct in Relation to Taxation (PCRT).

HMRC interest rates increase again: Following the Monetary Policy Committee’s decision to increase the Bank of England base rate to 4.5%, HMRC has announced increases to interest charged on both late paid tax and the rate paid on repayments of tax.

HMRC’s letters to businesses regarding electronic sales suppression: Businesses who might not have paid the correct income tax, corporation tax or VAT owing to misuse of their till systems are receiving letters from HMRC. 

HMRC launches advance valuation ruling service: The new service will provide traders with legal certainty on their valuation method for imported goods.

Drink return scheme deposits should fall outside the scope of VAT, suggests ICAEW: The Tax Faculty expresses concern that the proposed output VAT liability would fall on the wrong person.

HMRC extends and expands redirect to SMS trial: HMRC is to continue using text messages to redirect helpline callers to online services. It will expand the trial to more services. The trial is not being carried out on the agent dedicated line.

Member helpsheets and guidance

Apply for marriage allowance by postal form: HMRC has published a new form to enable individuals to apply for marriage allowance by post more easily. It is also possible to claim the allowance online, by phone and through a self assessment tax return.

PSAs – more details about new online service: HMRC has provided an update about its online service to apply for, amend or cancel a PAYE settlement agreement.

Payroll and IR35 webinars in May and June: Although the underlying rules may not have undergone significant change, payroll reporting processes are evolving and IR35 case law is developing. Find out more in these webinars from ICAEW in May and June.

Consultations

Commission publishes responses to BEFIT consultation: The European Commission has published responses to the consultation on its proposals for a common set of corporate tax rules across member states, known as Business in Europe: Framework for Income Taxation (BEFIT).

Tax administration and maintenance day: summary of announcements: Simplifying and modernising the tax system and tackling the tax gap – this framed the consultations, calls for evidence and next steps announced on tax administration and maintenance day (TAM day). ICAEW’s Tax Faculty highlights the key points.

Tax administration and maintenance day proposals: share your views: ICAEW’s Tax Faculty is seeking input from members on consultations on a range of issues including IR35, cryptoassets, and reform of stamp taxes on shares. Read the full list of consultations and find out who to contact with your views.

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