Highlights from the broader tax news for the week ending 9 August 2023, including: late payment interest on VAT or penalties; reporting requirements for platform operators; and SAYE bonus rates.
Late payment interest if you do not pay VAT or penalties on time
Businesses cannot appeal against a late payment interest charge. However, HMRC has recently added guidance on when you can object to a late payment interest charge. This includes:
- where HMRC has caused a mistake or there has been any unreasonable delay;
- the business disputes the relevant date or effective date of payment;
- mitigating circumstances apply; or
- the business is questioning the legislation
Due diligence and reporting requirements for platform operators
The Platform Operators (Due Diligence and Reporting Requirements) Regulations 2023 have been made and come into force from 1 January 2024. These rules are the UK’s implementation of the OECD’s model rules for reporting by platform operators with respect to sellers in the sharing and gig economy alongside the optional module for the sale of goods. The data must be collected in the UK from 1 January 2024 with the first reports made to HMRC by 31 January 2025.
The EU is a year ahead in implementation of the OECD’s model rules with member states adopting DAC7 with effect from 1 January 2023 with the first reporting of data in January 2024.
SAYE bonus rates
Following the launch of the new SAYE bonus rates automatic mechanism and specimen Save As You Earn (SAYE) prospectus, new SAYE bonus rates and the early leaver rate will apply from 18 August 2023.
- three-year bonus rate: 1.1
- five-year bonus rate: 3.2
- early leaver rate: 1.42%
This is the first time that new participants will receive a bonus since 2014. Read more.
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.