Highlights from the broader tax news for the week ending 30 November 2022, including: registering a client for VAT as an agent; the latest advisory fuel rates; wet signatures not required for IHT100 forms; changes to IHT400 forms; ATED relief for “Homes for Ukraine”; and details of benefit and pension rates for 2023/24.
HMRC updates guidance on registering a client for VAT as an agent
The updated guidance makes clear that agents should use their agent services account credentials (rather than HMRC online services credentials) when registering a client for VAT, to avoid being asked to verify their own identity.
Additionally, HMRC has updated the list of information required to register a client for VAT. The list now includes: details of the client's corporation tax payments, PAYE, self assessment return, recent payslip or P60 (whichever is more appropriate).
Where a limited company is being registered for VAT, it must have a company registration number and a corporation tax unique taxpayer refence (UTR). Individuals and partnerships do not need to have a self assessment UTR to register for VAT. However, if they do have a UTR, the agent will need to supply this.
Latest advisory fuel rates published
HMRC has published the fourth quarterly advisory fuel rates for 2022. From 1 December 2002, the rates for petrol cars fall by 1 penny. The rates for diesel cars are unchanged. The rates for LPG cars increase by 1p. The rate for electrical vehicles increases by 3p to 8p per mile. Employers can use previous rates for up to one month after the date the new rates apply.
IHT100 forms can be submitted without wet signatures
HMRC has published new guidance confirming that IHT100 forms can be sent without the trustees’ wet signatures, provided that specific wording is included on the form.
The declaration page of the IHT100 form should include the names and personal details of all of the trustees, along with a statement that the trustees have seen the form and agree to be bound by the declaration. The full statement to be included can be found in HMRC’s guidance. Agents and trustees will need to use slightly different wording.
HMRC confirms that the IHT100 form will be updated to reflect the change.
IHT400 forms updated
HMRC’s IHT400 form has been updated to include instructions not to send original documents with the application. Reminders have also been added to include an IHT421 form when applying for probate in England, Wales, or Northern Ireland, or a C1 form if applying for confirmation in Scotland. Access the updated form.
Homes for Ukraine – ATED relief
HMRC has updated its technical guidance documents to confirm that relief from the annual tax on enveloped dwellings (ATED) charge will be available for homes made available under the “Homes for Ukraine Sponsorship Scheme”.
Relief from the ATED charge would not normally be available where a dwelling is not being let out on a commercial basis with a view to profit, or being developed or prepared for sale. However, an exemption has been added to allow relief for dwellings that are made available to individuals under the “Homes for Ukraine” scheme. This does not extend to where homes are occupied by any non-qualifying individual, broadly encompassing the company owner and connected persons.
An ATED return needs to be filed by 30 April to claim any reliefs for the period 1 April to 31 March.
Benefits and pension rates
The Department for Work and Pensions has published the list of benefit and pension rates for the 2023/24 year. This includes statutory payments such as statutory sick pay, statutory maternity pay, and statutory paternity pay.
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