HMRC is writing to more than 150,000 VAT-registered businesses where it doesn’t hold a valid email address, explaining what they need to do to continue paying their VAT by direct debit. ICAEW’s Tax Faculty explains that this relates to the transfer of VAT records to a new database.
The deadline for paying VAT deferred due to the impact of coronavirus is the end of June. ICAEW’s Tax Faculty explains the options available to businesses to avoid a 5% penalty.
Highlights from the broader tax news week ending 26 May, which includes reminders on SEISS 4 grant claims and that loss carry-back claims can't be made until mid-July, as well as a coding error for service attributable pensions, more guidance on off-payroll working and extension to interim arrangement for trustees reliant on small savings.
As HMRC confirms delays in processing self assessment returns with incorrectly reported SEISS grants, the Tax Faculty has published guidance for all ICAEW members on the tax issues arising from the UK’s coronavirus support schemes.
The latest report from the Office of Tax Simplification review into capital gains tax makes recommendations in areas such as the UK residential property return, moving home, divorce and separation. It also highlights the low level of public awareness and where improved guidance is needed.
Employment tax expert Kate Upcraft is sharing practical support on changes to the national minimum wage regulations, current easements to benefits-in-kind for employees and CJRS compliance in an upcoming Tax Faculty webinar.
Ahead of the report stage scheduled for 24 May, the government has tabled several proposed amendments to the Finance Bill 2021 including to the super deduction and non-resident SDLT surcharge. It has also proposed four new clauses and a new schedule concerning VAT.
Highlights from the broader tax news week ending 19 May, which includes further clarity on VAT registration for overseas suppliers that only sell zero-rated goods and on drinks as food replacements for VAT purposes. HMRC confirms that 550,000 people have claimed WFH tax relief for 2021/22 and that its VAT records move may result in erroneous MTD message.
The Supreme Court has ruled that there was no deliberate inaccuracy in an income tax return despite the taxpayer "fudging" the return as result of a technical issue with the software used to prepare it. However, it also confirmed that HMRC can make discovery assessments after initially deciding not to raise an enquiry.
Jo Rowland, Director General for Transformation, has written the open letter to share her thanks to ICAEW, AAT, ATT, CIOT, ICAS and their members for the part they have played in HMRC's response to the pandemic, as well as touching on the next steps for CJRS and SEISS.