Highlights from the broader tax news for the week ending 29 March 2023, including: VAT penalty notices; the removal of the lifetime allowance; making MDR reports; Welsh Freeports; LBTT relief for green freeports; and an LBTT webinar series.
VAT penalty points notices for agents
HMRC is starting to issue VAT penalty notices to taxpayers who are late filing their VAT return or paying their VAT liability. Agents that have been authorised by their clients will receive copies of any notices issued to their clients.
The copies sent to agents will not include the taxpayer’s name or address because of GDPR concerns regarding the customer’s details being visible through the envelope window. The penalty notice will include the client’s VAT registration number (VRN). Using the VRN, agents can view their client’s penalty position by accessing their Agent Services Account.
Lifetime allowance updates
HMRC has published a newsletter regarding the changes to the lifetime allowance (LTA) from 6 April 2023. Following changes announced in the Spring Budget 2023, the LTA on pensions is being removed from 6 April 2023 and the maximum pension commencement lump sum is being frozen at £268,275.
The newsletter sets out additional information about the interaction between the pensions changes and lifetime allowance protections that were applied for before 15 March 2023. There is also information about operating PAYE for employers’ payroll reporting, and the impact on the public service pensions remedy.
Register to make an MDR report
The mandatory disclosure rules (MDR) replaced DAC 6 in the UK on 28 March 2023. These rules require certain cross-border arrangements to be reported to HMRC. HMRC has now made available a new page to register to make an MDR report. Once registered, a report can be made using HMRC’s new MDR reporting service.
Wales announces two freeports
Two new freeports are set to be established in Wales. Celtic Freeport will cover Milford Haven and Port Talbot, and Anglesey Freeport will be in North Wales. The freeports will form special zones and benefit from simplified customs procedures, relief on customs duties, tax benefits, and development flexibility. Read more.
Scottish government consults on LBTT relief for green freeports
The Scottish government has issued a consultation on introducing a new relief from land and buildings transaction tax (LBTT) for qualifying non-residential transactions within a designated green freeport tax site. Read more.
Revenue Scotland to host LBTT webinar series
Revenue Scotland is hosting a series of free one-hour online webinars in April and May covering various aspects of land and buildings transaction tax (LBTT). They include: an Introduction to leases; transitional leases; and the additional dwelling supplement (ADS). Find out more.