Autumn Statement

Extension of investment zone and freeport tax reliefs in England: Ahead of the Autumn Statement, the government announced that the investment zone and freeport tax reliefs will be extended from five to 10 years.

Off-payroll working offset rules to be introduced from April 2024: The Autumn Statement confirms a welcome new power to offset tax following a correction to an employment status determination.

CIS gross payment compliance tests to be strengthened: The Chancellor has confirmed that VAT compliance will be considered for obtaining and retaining gross payment status. Cancellation of gross payment status on grounds of fraud will also be expanded.

Expansion of cash basis for unincorporated businesses: The government has published the summary of responses to a consultation on the cash basis alongside the Autumn Statement. This announces relaxations that will allow more businesses to use this basis of taxation from 6 April 2024.

R&D tax relief merger to go ahead despite concerns: Jeremy Hunt has confirmed in the Autumn Statement that the two existing research and development tax relief schemes will merge with effect for accounting periods from 1 April 2024.

MTD ITSA announcement disappoints: The government has missed the opportunity to seriously reconsider its MTD ITSA policy. The decision on mandating MTD for the self-employed and landlords with turnover below £30,000 is to remain under review.

Extension of VAT zero rates in Autumn Statement: The zero rate of VAT will apply to reusable period underwear and the installation of a wider range of energy saving materials from early 2024.

Chancellor confirms full expensing will be permanent: The full expensing regime will not expire on 31 March 2026 and will be made permanent, the Chancellor announced at the Autumn Statement on 22 November 2023.

NIC rate cuts for self-employed and employees: National insurance contributions (NIC) will be reduced to 8% for the self-employed and to 10% for employees, and the flat rate class 2 NIC will be abolished for most self-employed, the Chancellor has announced.

MTD ITSA announcement disappoints: The government has missed the opportunity to seriously reconsider its MTD ITSA policy. The decision on mandating MTD for the self-employed and landlords with turnover below £30,000 is to remain under review.

Extension of investment zone and freeport tax reliefs in England: Ahead of the Autumn Statement, the government has announced that the investment zone and freeport tax reliefs will be extended from five to 10 years.

Need to know

Tips for returns for deceased individuals and estates: HMRC has issued a set of tips and reminders about self assessment returns for deceased persons and estates in administration.

HMRC provides update on forthcoming Single Trade Window: The first phase of the service to make border processes simpler will be available for public use in 2024.

Extension of VAT second-hand margin scheme in NI: Eligible vehicles purchased in Great Britain and moved to Northern Ireland before 1 May 2023 can now be sold under the margin scheme until 30 April 2024.

HMRC service performance remains poor: The latest figures for July to September 2023 show service performance at similar levels to the previous quarter.

UK to join Crypto-Asset Reporting Framework: The UK government has released a joint statement, along with 47 other countries, to implement new transparency and information sharing requirements in respect of crypto-asset platforms by 2027.

DIY housebuilders scheme digitised – and time limit extended: Individuals building their own home can submit their DIY housebuilders VAT refund claim digitally. The time limit for such a claim has also been extended to six months after completion of the build.

Public Accounts Committee report criticises MTD programme: HMRC has lost sight of needing to put taxpayers at the heart of changes to the tax system, warns PAC.

Member help sheets and guidance

Guidance for making R&D claims released: As HMRC issues its guidelines for compliance on what qualifies as R&D for tax purposes, ICAEW also reminds its members of the PCRT guidance relating to R&D tax services.

PAYE reporting for early payments of earnings at Christmas: It is common practice for employers to pay earnings earlier than the normal or contractual payday at Christmas. But what date should employers quote on their PAYE RTI full payment submission (FPS)? And when should they submit the FPS to HMRC?

HMRC provides update on forthcoming Single Trade Window: The first phase of the service to make border processes simpler will be available for public use in 2024.

Committee examines R&D, promoters and data proposals: The House of Lords Economic Affairs committee inquiry into the draft Finance Bill 2023-24 received 19 written responses and has heard from five representative bodies, including ICAEW.

Maximise opportunities, minimise risks and support the tax charities: Learn from three expert speakers on how to maximise opportunity for your clients and practice and minimise the risk of claims.

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