In this week’s miscellaneous updates, the latest Agent Update is available and HMRC has updated its core strategic objectives. Details of a new ‘Spotlight’ have been published and the latest schedule of HMRC Talking Points live and recorded webinars for tax agents are available for booking. Spaces are limited, so take a look now and save your place. And finally, check HMRC’s online services availability page for details of planned downtime and the online services affected.
Latest Agent Update
Agent Update Issue 130 is available. Get the latest guidance and information including:
- Self-Assessment repayments no longer available through telephone or webchat,
- Student loans thresholds, rates and loan start notices,
- Reminder about the new arrangements for moving goods from Great Britain to Northern Ireland under the Windsor Framework from 1 May 2025,
- protecting customer data against malware, and
- updates to the Tax Agent handbook.
HMRC updated strategic objectives.
HMRC has updated its core strategic objectives on GOV.UK. The updated objectives are to:
- close the tax gap,
- improve day-to-day performance and the overall taxpayer experience,
- reform and modernisation of tax and customs administration,
- build a high-performing organisation with a skilled and engaged workforce, and
- support wider government economic aims through HMRC’s work.
New Spotlight
In a new Spotlight, Spotlight 68, HMRC is telling companies not to use a scheme which seeks to use advertising/marketing expenditure both as a mechanism to reduce taxable profits and disguise employment income in the form of redeemable loyalty points.
This new Spotlight therefore flags a profit extraction scheme which aims to work as follows:
- the company buys ‘advertising’ from the promoter of the arrangement,
- it then claims a corporation tax deduction for the expense and reclaims the related VAT,
- the company’s directors/associates receive loyalty points equal in value to at least 80 percent of the cost of the advertising,
- these are converted by the promoter on a 1 point for £1 basis which is then credited to prepaid cards, and
- the cards are made available for directors/associates to use at their own discretion.
However, HMRC does not believe that the scheme delivers the intended tax reliefs and is therefore advising companies and their directors to withdraw from such arrangements and regularise their tax affairs.
HMRC Spotlights aim to highlight to agents and taxpayers when HMRC has begun investigating a scheme it believes has the features of tax avoidance.
LOADING...