Highlights from the broader tax news for the week ending 26 April 2023, including: ABAB annual survey; OSS VAT return added to business tax account; update to HMRC’s residence guidance; tax credit renewals; and VAT road fuel scale charges.
Administrative Burdens Advisory Board (ABAB) annual survey
The annual Tell ABAB Survey 2023 is now available to complete. The ABAB survey provides crucial insight on the big administrative tax issues faced by small businesses and tax agents. The survey takes approximately 10 minutes to complete and is open until 2 May 2023. Results from the survey will be published in the summer on GOV.UK in the ‘Tell ABAB’ report. If you have any questions about the 2023 survey email firstname.lastname@example.org.
One Stop Shop VAT return added to HMRC business tax account
Businesses that sell goods from Northern Ireland to consumers in the EU above the distance selling threshold need to pay VAT in the country the goods are sent to. The One Stop Shop (OSS) Union scheme allows businesses selling goods from Northern Ireland to the EU to comply these VAT requirements through a single VAT registration instead of registering in each country in which the threshold is crossed. The OSS scheme can now be accessed through HMRC’s business tax account here.
Residence for EU workers who joined after 30 December 2020
HMRC has updated its guidance note on residence to clarify the position for EU workers now that the UK has left the EU. UK resident individuals who first started to work for the EU after 31 December 2020 and relocate to another country to work for the EU will become tax resident in that other country (depending on their domestic tax residence rules).
The previous position was that an individual would remain resident in the last EU member state that they were resident in despite relocating to work for the EU. This remains the treatment for EU workers who started to work for the EU up to and including 31 December 2020.
Tax credit renewals
Tax credit customers will receive their annual renewal packs from HMRC between 2 May and 15 June. Read more.
VAT road fuel scale charges updated
From 1 May 2023, businesses must use the updated rates for the VAT road fuel scale charge, to account for private consumption of fuel on a business vehicle. The new rates can be found here.