ICAEW.com works better with JavaScript enabled.

Tax news in brief

Highlights from the broader tax news week ending 20 January, which includes: HMRC to amend CJRS guidance over annual pay, updates to ICAEW's support on options for self-assessment deadlines, HMRC webinar to help avoid pension scams, and potential VAT implications for Gibraltar post-Brexit.

HMRC to amend error in CJRS guidance over annual pay

ICAEW’s Tax Faculty has highlighted an error in HMRC’s guidance providing examples of how to work out 80% of wages for an employee which was updated on 13 January. Example 3.14 covers calculating wages for an employee with annual pay whose reference date is 19 March.

The example states that the employee is paid each year on 31 December and that the reference salary for the CJRS extension which will be the same as for the original CJRS. However, under the original scheme employees must have had some earnings since 20 March 2020. HMRC has confirmed that the example needs clarification and it will be amended.

Options for SA deadline – updates

ICAEW’s Tax Faculty has updated its article outlining options for taxpayers and agents having difficulty filing or paying ahead of the self assessment deadline on 31 January. The minor changes confirm that the period for lodging an appeal has been extended by three months and outlines the new HMRC and DWP process for dealing with employment and support allowance claims where national insurance contributions are not paid by the deadline. Read more.

Gibraltar may have to impose VAT in line with EU

Spanish newspaper El Pais has reported that Gibraltar may have to apply VAT legislation in line with the EU under a treaty yet to be negotiated between the UK and the EU. On 31 December, the UK and the EU agreed what UK Foreign Secretary, Dominic Raab, described as a “political framework to form the basis of a separate treaty… regarding Gibraltar”. El Pais reports to have had access to the document and provides an outline of its contents, including that relating to the customs union. Read more.

HMRC webinar to help avoid pension scams

HMRC has published a webinar aimed at helping tax agents and employers avoid pension scams. The webinar, recorded in October, was held in partnership with The Pensions Regulator and The Financial Conduct Authority. It outlines how to spot the warning signs of a scam and how to educate employees and clients. Watch the recording.