Highlights from the broader tax news for the week ending 24 November, including: a warning about potential R&D repayment delays and a campaign to help contractors to spot tax avoidance.
HMRC warns of possible R&D repayment delays
Every year, HMRC receives a spike in R&D tax credit claim volumes during December and January. This is caused by the filing deadline for December year ends along with March year ends that have 1 January corporation tax payment dates. While HMRC has a commitment to process 95% of online R&D tax credit claims within 28 days of receipt, in Agent Update 90, it warns that processing times may be longer during this peak period and that the 28-day period does not apply where claims are not filed by the electronic portal or where BACS payment details are missing or are incorrect.
HMRC launches campaign designed to help contractors spot tax avoidance
HMRC has issued a range of communication resources that stakeholders can use in support of its ‘Tax avoidance – don’t get caught out campaign’. Alongside raising awareness, HMRC has issued guidance on checking payslips for contractors and agency workers working through umbrella companies together with an online checker for signs of tax avoidance. If you are a contractor needing advice, find a Chartered Accountant who specialises in tax.
ICAEW Know-How from the Tax Faculty
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.