Need to know

Budget plans revealed for 30 October: The government has set the date of the Budget and confirmed that VAT will be charged on private school fees paid from 29 July 2024 in relation to the school term starting in January 2025.

What might we see in the next budget?: When will the new government deliver its first budget, and what will it include? ICAEW’s Tax Faculty looks for clues in the Labour Party’s manifesto and other publications.

HMRC targets persons with significant control: In its latest one-to-many campaign, HMRC is writing to persons with significant control who have not filed a tax return or may not have declared all their income.

Warning from HMRC on workplace nurseries: HMRC is encouraging employers to check that they meet the ‘partnership requirements’ for the workplace nursery tax exemption.

Employees must claim PAYE repayments: HMRC will no longer automatically issue a cheque where an employee is due a repayment under pay as you earn. Instead, the employee must take action to receive the repayment.

VAT registration details must be changed digitally from August: From 5 August 2024, a business wanting to change its VAT registration details must do so using its VAT online account.

CIS payment deduction statements must be requested by post: It is no longer possible for subcontractors under the construction industry scheme (CIS) to request payment deduction statements from HMRC’s CIS helpline. The request must be made by post.

ICAEW’s tax content can help with CPD requirements: The summer could be a good time to complete some continuing professional development (CPD) hours and ICAEW’s Tax Faculty can help you do it.

Voluntary class 2 NIC repaid in error: HMRC has provided an update on an issue affecting voluntary class 2 national insurance contributions (NIC) for 2022/23.

Taxpayers may have exceeded BADR limit: HMRC has contacted taxpayers who may have claimed more than £1m business asset disposal relief (BADR) up to and including 2022/23.

ICAEW supports reform of the trust registration service: Having a de minimis level for registration should benefit small trusts that do not fit any of the existing exemptions, but only if the proposed de minimis criteria are appropriate.

Help shape ICAEW’s MTD content: The Tax Faculty welcomes feedback on its updated content on Making Tax Digital (MTD).

More taxpayers means more demand on HMRC, says ICAEW: HMRC estimates that 37.4m people will pay income tax in 2024/25, up by 1.2m on 2023/24 and 4.4m on 2021/22, when the tax-free personal allowance was frozen.

Member help sheets and guidance

HMRC helps businesses prepare for Pillar 2: In its third Pillar 2 update, HMRC explains aspects of the rules and sets out its plans for the coming months, including the release of the next stage of its Pillar 2 online service.

King’s Speech includes VAT on private school fees: The government has confirmed it will remove the VAT exemption for private school fees and that the Office for Budget Responsibility will assess all significant tax measures.

Agent authorisation for deceased taxpayers made easier: Agents should use form P1000, now available on gov.uk, in preference to form 64-8 when requesting authority to act for the personal representatives of an estate.

More taxpayers can set up a payment plan: From the end of last year, HMRC increased the maximum tax debt that can be included when making a time to pay arrangement online, to £30,000 for individuals and £50,000 for businesses.

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