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ICAEW technical round-up: August 2022

Author: ICAEW Insights

Published: 30 Aug 2022

This month’s top technical stories include New VAT online services, the Tax treatment of charging company-provided electric cars, and a consultation on the future of business rates online.

Need to know

New VAT online services: HMRC has launched a new VAT registration service for agents and an online error correction service.

Moment of truth for MTD VAT: HMRC’s online VAT return will close on 1 November 2022. From that date, businesses and agents will only be able to file VAT returns using MTD compatible software. The online VAT return will remain available to those with a digital exclusion exemption.

HMRC confirms that CGT property returns must be filed: HMRC has clarified that, with one exception, a CGT property return must be filed even if the disposal has already been reported on a self assessment return. ICAEW’s Tax Faculty explains the rules and the impact on penalties.

HMRC performance continues to be poor: HMRC’s performance data for April to June 2022 demonstrates that the promised return to normal service levels from April 2022 has not occurred. HMRC is now striking a more pessimistic note on performance recovery.

Latest interest rate change increases tax repayment rate: Following the Monetary Policy Committee decision to increase the Bank of England base rate to 1.75%, HMRC has announced increases to both interest charged on late paid tax and the rate paid on repayments of tax. ICAEW’s Tax Faculty highlights what is changing and from when.

VAT assessments change for overseas online marketplace traders: ICAEW’s Tax Faculty understands that HMRC is changing the way it carries out VAT assessments for overseas online marketplace traders that have submitted inaccurate returns.

Reporting rules for digital platforms to apply from 1 January 2024: OECD rules requiring online marketplaces to report the details and income of the sellers of goods and services on their platforms will apply in the UK, summary of responses confirms.

ICAEW calls for improvements to EU e-commerce regime: In its response to the EU Commission’s call for evidence on administrative cooperation and the fight against VAT fraud, ICAEW’s Tax Faculty focussed on the benefits of requiring a reduced number of VAT registrations within the EU.

Member helpsheets and guidance

Tax treatment of charging company-provided electric cars: ICAEW’s Tax Faculty highlights that HMRC’s guidance on reimbursement of electricity costs for charging company-provided wholly electric cars conflicts with the law.

 

CGT property reporting tip: ICAEW’s Tax Faculty has become aware of a possible solution for users receiving a repeated error message when reporting CGT on UK residential property disposals. It may also work for other HMRC services.

 

Common errors in the calculation of CJRS grants: HMRC offers answers to some frequently asked questions on what action, if any, employers should take if they have made a mistake when calculating Coronavirus Job Retention Scheme grants.

HMRC issues step-by-step guides to trust registration: In advance of the 1 September 2022 deadline for registering trusts online, HMRC shares guides on registering a trust and how to claim a trust and authorise an agent.

First-tier Tribunal updates guidance on taking oral evidence from abroad: The latest guidance includes an expanded list of information that needs to be provided to the tribunal. The information should be shared with the other party to the case to confirm whether the evidence is disputed.

MTD ITSA notices are a small piece of the jigsaw: In its comments on the draft MTD ITSA notices, ICAEW highlights some of the many significant policy, design, and implementation issues that have yet to be resolved. The solution to some of these issues may lie in changes to policy and legislation.

Consultations

The future of business rates online – what you need to know: The government is consulting on plans to support ratepayers by displaying their tax and business rates information in the same place online within the next few years. This article summarises what could be involved and asks for your input to help ICAEW respond to the consultation.

Government launches consultation on UK Single Trade Window: Consultation setting the principles underpinning the legislative changes necessary to deliver the government’s border strategy ambitions.

Independent customs regime: UK government publishes consultation response summary: The government will use the responses to this call for evidence to inform the policy-making process. It intends to set out further details of its plans for a global border regime in the autumn.

Government ducks the challenge of making employment status fit for purpose: Government publishes new employment status guidance and its response to the 2018 employment status consultation.

ICAEW provides reflections on business rates revaluation transition arrangements: In its consultation response, ICAEW has challenged the historic revenue neutral policy associated with these arrangements and has suggested that the government ensures that changes do not prevent it from taking steps to control inflation.

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