Highlights from the broader tax news week ending 30 June, which includes: pensions schemes and leases to connected tenants, an extended time limit for notifying an option to tax, a reminder to tell HMRC about an EU VAT import one stop shop registration, HM Treasury's launching of the business rates revaluation consultation and HMRC's latest briefing on collecting tax debts.
Pensions schemes and leases to connected tenants
In its pension schemes newsletter 130, HMRC has highlighted issues for self-invested personal pensions (SIPP) and small self-administered scheme (SSAS) pensions that hold commercial properties. In particular, it reminds scheme administrators that payment holidays should be on a commercial basis to a connected party, otherwise unauthorised payment changes may arise. It also reminds administrators that renegotiation of lease terms should be on commercial terms where the tenant is connected. Evidence should be retained to support the basis that terms are agreed for both payment holidays and renegotiated lease terms. Read more
Extended time limit for notifying an option to tax
During the coronavirus pandemic, the time limit for notifying HMRC about a decision to opt to tax land and buildings has been extended from 30 days to 90 days where the decision to opt was made on or after 15 February 2020. This extended time limit was due to come to an end for decisions made on or after 1 July 2021. However, it will now apply for decisions made up to and including 31 July 2021. Read more.
Tell HMRC about an EU VAT import one stop shop registration
From 1 July 2021, businesses registered for the import one stop shop (IOSS) in the EU must account for the VAT on sales of eligible low value goods to Northern Ireland in consignments not exceeding £135 on their IOSS return and do not have to account for import VAT when the goods enter Northern Ireland. Businesses also need to tell HMRC that they are registered for the VAT IOSS. The details to be provided include the IOSS registration number, the EU country of IOSS registration, name, address and contact details (including an email address), and, if applicable, the UK VAT registration number. Find out more.
HM Treasury launches business rates revaluation consultation
As part of the fundamental review of business rates, this latest consultation proposes a move from 5-yearly to 3-yearly revaluation cycle for non-domestic property. The deadline for responses in 24 August 2021. Read the consultation.
HMRC issue briefing on collecting tax debts
HMRC has set out its approach to collecting tax debts as the UK emerges from the coronavirus pandemic. The key message for taxpayers remains that they are encouraged to make contact with HMRC if they are struggling to pay their taxes as they fall due and to agree a payment plan. It also sets out that from September 2021, HMRC may restart the process of collecting debt using its enforcement powers where taxpayers are unwilling to discuss a payment plan, or where a they ignore HMRC attempts to contact them. Read more.
This guidance is created by the Tax Faculty, recognised internationally as a leading authority and source of expertise on taxation. The Faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.