Highlights from the broader tax news for the week ending 2 August 2023, including: professional standards for HMRC’s compliance work; basis period reform guidance; CCO investigations; deeds of assignment; and alcohol duty CDS code changes.
Professional standards for HMRC’s compliance work
HMRC’s customer compliance group has introduced a set of compliance professional standards that enquiry case workers are required to adhere to. The standards set out how HMRC applies its charter and civil service values and the way in which it is committed to behave when conducting any form of compliance work.
External publication should help ICAEW and its members to hold HMRC to account when it is not acting in line with these standards.
HMRC publishes guidance on basis period reform
HMRC has published a guidance note on the way that self-employed business owners and partners will need to report their trading income from 2023/24 (known as basis period reform). More detailed guidance can be found in HMRC’s Business Income Manual and ICAEW’s TAXguide on basis period reform.
Latest HMRC update on corporate criminal offence investigations
HMRC has provided an update on the number of corporate criminal offence (CCO) investigations it is currently undertaking. As of 30 June 2023, it had nine live CCO investigations with a further 25 opportunities under review and an additional 83 opportunities rejected. This represents a small change from the position on 1 January 2023 when 26 opportunities were under review and 77 had been rejected to date.
Deeds of assignment will no longer be treated as nominations
Assignments of income tax repayments were rendered void from 15 March 2023, the date of the Spring Budget. HMRC continues to accept nominations of income tax repayments.
For a transitional period, HMRC agreed to treat assignments as non-legally binding nominations. The transitional period has now ended. Any assignment of an income tax repayment received on or after 20 July 2023 will not be accepted as a nomination. In such cases HMRC will repay the taxpayer directly where there is no valid nomination present.
Alcohol duty CDS code changes for pre-lodged declarations
Changes to the structure of alcohol duty apply from 1 August 2023. Pre-lodged CDS declarations submitted before this date, that will be arrived on CDS on or after 1 August 2023, and use the 300 and X300 codes, will need to be cancelled or amended. Pre-lodged declarations can be amended until the declaration is arrived. Once the declaration has arrived, it cannot be amended and CDS will reject it. A new declaration will need to be submitted in this instance. Please read the guidance on how to cancel or amend a declaration on CDS on GOV.UK.