Tax news in brief 27 September 2023

Highlights from the broader tax news for the week ending 27 September 2023, including: student loan deductions and payrolled benefits; enhancements to HMRC’s use of open banking; and changes to probate phone lines. Issue with student loan deductions and payrolled benefits in kind  HMRC has identified that a small number of student loan borrowers have […]

Tax checks for licence renewals expanding to Scotland and NI

Tax checks are needed before renewing certain licences on or after 2 October 2023. In Scotland this applies to licences to drive taxis and private hire cars, operate a booking office and to be a metal dealer. In Northern Ireland this applies to licences to drive taxis. The requirement to complete a tax check before […]

HMRC updates guidance on charging company electric cars

HMRC accepts that no taxable benefit arises where an employer reimburses their employee for the cost of charging a company-owned, wholly electric car that is available for private use. ICAEW’s Tax Faculty highlighted that it considered HMRC’s guidance and tools for the tax treatment of the reimbursement of electricity costs did not reflect the law.  […]

ICAEW and other bodies request action on tax simplification

Meaningful tax simplification requires a clear plan, focused resource, accountability, and investment, say the professional bodies. On 5 April 2023, ICAEW together with the Chartered Institute of Taxation, Institute of Chartered Accountants of Scotland, Association of Taxation Technicians and Low Incomes Tax Reform Group, wrote to the Financial Secretary to the Treasury (FST). The letter […]

HMRC asks VAT businesses to prove UK establishment

Businesses registered for VAT at a high-volume address will be asked by HMRC to prove they are established in the UK. Online marketplaces have been liable for the output VAT from sales on their platforms by overseas traders since January 2021. HMRC believes that some non-established taxable persons (NETPs) have incorporated in the UK and […]

ICAEW welcomes HMRC proposals on Terminal Markets Order

The Terminal Markets Order needs updating, but ICAEW questions why the proposed simplification doesn’t go further. HMRC’s consultation on reforming the Terminal Markets Order (TMO) proposed to modernise the legislation that underpins the VAT treatment of certain wholesale commodity transactions.  In its response, ICAEW’s Tax Faculty agreed that the TMO needed modernising. It was broadly […]

ICAEW comments on decarbonising UK energy production

In its response to a consultation on the UK’s oil and gas fiscal regime, ICAEW stressed the dangers of overreliance on oil and gas to meet current and future energy demand and highlighted the opportunities that can be created from investment in low carbon technology. The consultation response highlights the fact that, while half of the […]

Action required by those holding certificates of tax deposit

Certificates need to be used by 23 November 2023. The value on HMRC’s books is £89m. The deadline for using a certificate of tax deposit (CTD) to settle a tax bill is 23 November 2023.    After that date, the normal process for making a withdrawal will apply.   The current value of outstanding CTDs not […]

Should you be paying national insurance while working abroad?

HMRC has launched a new tool for people to check whether they should be paying national insurance contributions (NIC) while they are working abroad. Typically, individuals relocating abroad permanently will stop paying NIC in the UK and pay social security (or the domestic equivalent) in their new country of residence. There is the option to […]

How will the EU CBAM affect UK businesses?

The EU’s carbon border adjustment mechanism enters its transitional phase on 1 October 2023, meaning that UK businesses exporting to the EU must prepare for the changes. The EU’s carbon border adjustment mechanism (CBAM) is a policy developed by the EU to prevent ‘carbon leakage’. UK businesses exporting to the EU need to be aware […]