HMRC has lost sight of needing to put taxpayers at the heart of changes to the tax system, said the parliamentary Public Accounts Committee (PAC) in a report on the making tax digital (MTD) programme. The committee noted that with MTD, rather than aiming to make it easier for people to get their tax right, […]
As of August 31, 2023, the Trust Registration Service reported 633,000 registered trusts and estates, with 75% registering between April 2022 and March 2023. Self-assessment returns by trusts and estates fell by 3% in 2021-22, part of a 12% decline since 2016-17. Total income in 2021-22 reached £3,075 million, surpassing pre-pandemic levels.
An online form for submitting requests for details about overlap relief will be available from HMRC from 11 September. The aim is to provide a straightforward way to submit requests and make sure that these are dealt with separately from general post. The planned date for the new form was 29 August but HMRC has […]
HMRC has published directions under SI 2003/282 regulations 3 and 10 in relation to claims for research and development. Summary These directions apply in relation to the delivery of: • advance notification to HMRC for R&D claims for accounting periods beginning on or after 1 April 2023 • additional information forms for R&D claims made […]
The tax debt balance at the end of June 2023 was £44.5bn, according to HMRC’s quarterly performance report for the first quarter of 2023-24. This is a reduction from £45.9bn at the end of March 2023 but a 6% increase on the £42bn it stood at in June last year. In the report, HMRC said: […]
According to a recent study, more than 50% of accountants’ clients are worried about the potential impact of increased complexity surrounding research and development (R&D) tax relief on their cashflow. The research findings indicate that accountants share this concern, with approximately 61% of those surveyed stating that the alterations to the R&D tax relief scheme […]
HMRC’s latest avoidance spotlight draws attention to a dividend diversion scheme used to fund the cost of education fees. The spotlight explains that the arrangements are aimed at individuals who are the directors and main shareholders of a company and that they work broadly as follows: Company issues a new class of shares which usually entitles the […]
In the tax year 2021-22, 4,480 companies raised a total of £2,305m of funds under the enterprise investment scheme (EIS). This is the highest number of companies and total amount raised since the scheme was introduced. Funding has increased by 39% from 2020-21, when 3,765 companies raised £1,662m. Latest figures from HMRC show that money invested in […]
HMRC is increasing interest rates for late payments for most taxes after the Bank of England’s decision to increase the base rate to 4.5%. From 22 May 2023, the rate for late paid corporation tax quarterly instalment payments is 5.5%, while the rate paid on overpaid quarterly instalment payments and on early payments of corporation tax […]
HMRC began issuing P9 notice of coding email notifications to employers on 6 February 2023 and expects to complete the process by 5 March 2023. The notice advises that employees’ coding for the tax year starting 6 April 2023 can be viewed within the PAYE online account. Paper notices should arrive with employers on or […]
The government has extended the voluntary National Insurance deadline to 31 July 2023 to give taxpayers more time to make contributions for the years from April 2006 to April 2017. The original deadline was 5 April 2023. All voluntary contributions will be accepted at the 2022-23 rates until 31 July. As part of transitional arrangements […]
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, […]