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Highlights from the broader tax news for the week ending 14 June 2023, including: P11D registration tip; VAT liability of digital publications; Scottish deposit return scheme delay; and oil and gas tax changes.

P11D filing - registering for PAYE

When registering for PAYE to file P11Ds online, do not leave any spaces when inputting your postcode. Postcodes submitted per HMRC’s example “AB1 1AA”, (ie, with a space between the first and second halves), are not accepted.

VAT liability of digital publications

HMRC has released Revenue and Customs Brief 6 (2023) following the Supreme Court decision in News Corp UK and Ireland Ltd [2023] UKSC 7. The Supreme Court dismissed News Corp’s appeal such that digital newspapers remain standard-rated if supplied prior to 1 May 2020. HMRC will be writing to organisations that have submitted claims for overpaid VAT based on the earlier Upper Tribunal decision to establish whether they intend to proceed with their appeals.

Scottish deposit return scheme delayed

The launch of Scotland’s deposit return scheme (DRS) will be delayed until at least October 2025. The Scottish government has decided to delay the scheme after the UK government attached conditions to the scheme’s exclusion from the Internal Market Act. October 2025 is when schemes in England, Wales and Northern Ireland are currently due to launch.

Oil and gas tax changes

The energy profits levy, which puts a marginal tax rate of 75% on North Sea oil and gas production, will remain in place until March 2028. The government has announced that the tax rate for oil and gas companies will only return to 40% if both average oil and gas prices fall to, or below, $71.40 per barrel for oil and £0.54 per therm for gas, for two consecutive quarters. The government has now published the terms of reference for the oil and gas fiscal regime review that was announced at the Autumn Statement together with an energy security investment mechanism to give the oil and gas sector certainty to raise capital and invest in new and existing projects. Find out more.

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