Highlights from the broader tax news for the week ending 10 May 2023, including: a digital VAT5L form; changes to the DASVOIT rules; and a report from the Public Accounts Committee on tax compliance.
Digital VAT5L form
The VAT5L form can now be completed digitally. The form is used to notify HMRC of the specific nature of land and property supplies a business intends to make when registering for VAT. Once completed, the form can be saved as a PDF and attached to an online application for VAT registration or posted to the address provided.
Amendments to DASVOIT rules apply from 1 June 2023
Minor amendments to the Indirect Taxes (Notifiable Arrangements) Regulations 2017 will apply from 1 June 2023. This will change the Disclosure of Tax Avoidance Schemes: VAT and other indirect taxes (DASVOIT) rules. The amendments ensure that transactions within VAT groups include the 'hallmarks' covering offshore supplies. The amendments will be enacted as drafted following a recent consultation.
The Public Accounts Committee has released its report Managing tax compliance following the Pandemic. The report notes that, due to those working on compliance being moved to COVID support schemes, tax compliance fell as a proportion of tax revenue to 4.2% on 2021-22. This represents its lowest proportion of tax revenue since 2011-12.
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.