The second-hand motor vehicle payment scheme is being introduced on 1 May 2023 and will allow VAT-registered businesses to claim a VAT-related payment if they buy a second-hand vehicle in Great Britain – England, Scotland and Wales – and move it to Northern Ireland for resale. In the latest Agent Update, HMRC reminds businesses that from 1 May, […]
The chancellor confirmed that from 1 April 2023, the main rate of corporation tax will be 25% with a small profits rate of 19%. On capital allowances, the government will introduce full expensing for the next three years. Companies incurring qualifying expenditure on the provision of new plant and machinery on or after 1 April 2023 but before 1 […]
The digital services tax was designed as an interim tax before the reforms to international tax rules to ensure that multinational enterprises pay a fair share of tax wherever they operate, said the House of Commons’ Public Accounts Committee (PAC). However, given the likely delay to the first stage of these reforms – pillar one […]
The government wishes to extend the self-employed cash basis so that as many businesses as possible are able to use it. It has published a consultation document which proposes the following: increase the turnover thresholds for businesses to use the cash basis; set the cash basis as the default, with an opt-out for accruals; increase the £500 […]
HMRC is increasing interest rates for late payments for most taxes after the Bank of England’s decision to increase the base rate to 4.25%. From 3 April 2023, the rate for late paid corporation tax quarterly instalment payments is 5.25%, while the rate paid on overpaid quarterly instalment payments and on early payments of corporation tax […]
From the 17th of April to the 2nd of June, the agent-dedicated line (ADL) will exclusively attend to calls concerning self-assessment late filing penalties and appeals as well as PAYE coding enquiries. The ADL will not attend to any calls regarding progress chasing. HMRC recommends that agents utilize its online services or main helplines for […]
Starting on April 6th, 2023, GOV.UK will not allow users to download self-assessment tax return forms. Approximately 135,000 taxpayers who file paper returns will be notified by HMRC that they will no longer receive automatic paper forms. Instead, they will receive guidance on how to file their returns online. HMRC will also provide information on […]
The HMRC’s lifetime allowance guidance newsletter appears to cover a range of topics related to pensions and lifetime allowance protections. Here is a summary of each topic: Pension Commencement Lump Sum: This refers to the lump sum payment that can be taken from a pension pot when a person starts taking their pension benefits. The […]
HMRC guidance on corporation tax: selling or closing the company HMRC have updated their guidance to include information about when a dissolved company has been struck off the Companies House register. It confirms that, as the company will no longer exist as a legal entity, Companies House cannot respond to any correspondence from former directors, […]
The Research and Development (Prescribed Activities) Regulations SI 2023/293 provide details of activities that are, or are not to be treated as research and development for the purposes of ITA 2007,s 1006 with reference to the Business, Energy and Industrial Strategy. Activities prescribed as research and development. For the purposes of section 1006 of the […]
Leisure services for members of the public can now be treated as non-business activities for VAT purposes, HMRC has confirmed. Previously, local authorities had to treat these supplies as business activities and either: charge their customers VAT at the standard rate; or apply the exemption. After several local authorities challenged this treatment, the courts ruled […]