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Highlights from the broader tax news for the week ending 23 November 2022, including: increase to electric car advisory fuel rate; removal of access to CHIEF for importers; technical guidance on the fulfilment house due diligence scheme; electronic submission of VAT refund claims for non-UK businesses; and the Autumn Finance Bill 2022.

Significant increase to electric car advisory fuel rate

HMRC has announced that the advisory fuel rate for electric cars will increase from 5p per mile to 8p per mile from 1 December 2022. This announcement has been made ahead of the release of advisory fuel rates from 1 December 2022. HMRC has also confirmed that in line with advisory fuel rates, the electric rate will be reviewed quarterly from 1 December 2022. ICAEW’s Tax Faculty welcomes both the increase and HMRC’s commitment to review the rate on a quarterly basis.

CHIEF access to be removed for traders not engaging with migration to CDS

HMRC will be writing to a small number of traders that are still using the Customs Handling of Import and Export Freight (CHIEF) system for import declarations. The traders will be given ten working days to move new import declarations to the Customs Declaration Service (CDS). If they continue to make declarations on CHIEF after ten days, HMRC will start the process of removing their ability to make new import declarations on CHIEF.

The traders can still use CHIEF to access existing declarations, make supplementary import declarations if needed and make new export declarations if required.

Those who are taking steps to move to CDS but require a little extra time to complete their preparations, can apply for an extension to use CHIEF, provided they have an acceptable business reason.

Help and support for CDS is available on GOV.UK as well as HMRC’s YouTube videos.

This activity does not affect those who have permission from HMRC to continue to use CHIEF for imports, either through an agreed extension or because functionality does not yet support their migration. Neither does it affect those making export declarations on CHIEF – this is for import declarations only.

HMRC releases technical guidance on the fulfilment house due diligence scheme

Businesses that store goods imported into the UK for sellers established outside the UK are generally required to apply for the fulfilment house due diligence scheme.
HMRC has now brought together its technical guidance on the scheme, designed primarily for its own staff but available to everyone, into a single VAT manual. Anything stated in this manual cannot be relied upon by taxpayers or advisers. The manual can be found in HMRC’s VAT manuals collection.

There is also customer guidance on the scheme, which is aimed at taxpayers.

HMRC extends electronic submission of claims for VAT refunds for non-UK businesses

Historically, non-UK businesses making a refund claim for VAT incurred in the UK have been required to do so by post. HMRC has been trialling an electronic claims service. This is now being extended to all agents and businesses. Details of how to apply for the electronic claims service and make a claim can be found here.


HMRC notes that the claims service is still in testing and could be paused at any time. Claims already submitted would not be affected.

Autumn Finance Bill 2022

The Autumn Finance Bill 2022 was published on 22 November 2022. It includes measures announced at the Autumn Statement including extending the energy profits levy, lowering the threshold for the additional rate of income tax, cutting the dividend allowance and the capital gains tax annual exempt amount, introducing vehicle excise duty for electric vehicles, setting company car tax rates until 2028, freezing income tax and inheritance tax thresholds until 2028, and reforming the rates of relief and credits for research and development. Read more at Autumn Finance Bill 2022 published - GOV.UK (www.gov.uk)

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