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Highlights from the broader tax news for the week ending 31 August 2022, including: advisory fuel rates; trust registration penalties; and an update on R&D tax credit payment delays.

Latest advisory fuel rates published

HMRC has published the third quarterly advisory fuel rates for 2022. From 1 September 2002, the rates for petrol and diesel engines of 2000cc or less and LPG engines over 2000cc have increased by 1 penny. The rates for petrol engines larger than 2000cc have increased by 2p. The rates for diesel engines larger than 2000cc have increased by 3p. The rate for electrical vehicle remains unchanged at 5p per mile. Employers can use previous rates for up to one month after the date the new rates apply.

HMRC updates trust registration guidance to confirm when penalties will be charged

HMRC has updated its guidance Register a trust as an agent and Register a trust as a trustee to highlight that trustees will not get a penalty for failure to register or late registration unless that failure is due to deliberate behaviour. If trustees deliberately fail to register the trust on time they may have to pay a penalty of £5,000. These pages alongside the page Manage your trust’s details, also remind trustees that a penalty of up to £5,000 can apply for deliberately failing to keep the register up to date. Changes must be reported within 90 days of the change.

R&D tax credit payment delays continue

HMRC has confirmed that it is still applying additional operational checks to protect against fraudulent R&D tax credit claims. HMRC expects that the standard service level will need to be 40 days (compared to the previous 28 days). HMRC is working to recover from the recent pause in payments and expects to be processing 80% of claims within 40 days by the end of August 2022. Requests for further information to support claims have been issued to over 1,000 claimants that have been identified as high risk.

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