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Highlights from the broader tax news for the week ending 26 July 2023, including: corporation tax filing for companies in insolvency; relief for foreign taxes in PAYE codes; HMRC guidance on negative earnings; and transfer pricing records regulations.

Filing tax returns for companies in insolvency

HMRC introduced the latest version of the company tax return (CT600) form in 2015 with version 3. However, it is still receiving earlier versions of the return which are no longer valid. Using the most current form and submitting online can expedite processing times. Read HMRC’s Insolvency Bulletin for further details.

Getting relief for foreign taxes in PAYE codes

Where an employee works overseas, a foreign tax authority may require the UK employer to deduct tax from the same earnings against which the employer has to operate PAYE. Where an employer needs to get a PAYE code adjusted to give relief for foreign tax, they are advised to call HMRC and state that their call relates to coding under PAYE81715.

HMRC guidance on negative earnings

HMRC has issued new guidance concerning negative earnings and clawback bonuses. It describes how employees may be able to claim an income tax refund from HMRC. Read the guidance.

Transfer pricing records regulations

Regulations giving effect to the record keeping requirements in the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations 2022 have been made. These regulations introduce master file and local file as UK documentation requirements for multinationals with turnover of €750m or more. They have effect for corporation tax purposes in relation to returns for accounting periods beginning on or after 1 April 2023 and for income tax purposes from the tax year 2024/25.

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