Highlights from the broader tax news week ending 6 October, which includes: working tax credits: reporting changes to working hours, plastic packaging tax: statement requirement delayed and legislation passed implementing UK-Swiss social security deal.
Working tax credits: reporting changes to working hours
HMRC has confirmed that recipients of working tax credits (WTC) will have to start reporting changes to their working hours again from 25 November 2021. During the pandemic those receiving WTC did not have to inform HMRC of temporary reductions to their working hours due to the impact of coronavirus. On 29 September, HMRC confirmed that the pre-COVID process was returning, and those whose who were not working their “normal” hours (as shown in their WTC claim) from 25 November will have one month to inform HMRC of the change. Read more.
Plastic packaging tax: statement requirement delayed
HMRC has updated its guidance on preparing for the new plastic packaging tax, confirming that businesses won’t be required to make a statement on their invoices that the tax has been paid when it is introduced on 1 April 2022. The Tax Faculty believes that this is a sensible delay given the time it will take to update software and systems, however, it also highlights that it will potentially make it harder for businesses to check whether the tax has already been paid elsewhere in the supply chain. Read more from ICAEW on the plastic packaging tax.
Legislation passed implementing UK-Swiss social security deal
Following the announcement on 9 September that the UK and Switzerland had signed an agreement on social security coordination (as noted in tax news in brief, 15 September), legislation has been passed enacting the deal. The Social Security (Switzerland) Order 2021 (SI 2021/1088) came into force on 29 September and ensures that cross-border workers and employers will be liable to pay social security contributions in only one state at a time.
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