This week’s miscellaneous updates – 9 December 2024

In this week’s miscellaneous updates, HMRC has published a range of new guidelines for compliance (GFCs) and further updated guidance on Pillar Two has been published. The National Audit Office has published its annual report on HMRC and regulations on the penalties applicable to late payment of tax have been laid. And finally, the latest fuel advisory rates, which apply to employees using a company car, have been published and should be used from 1 December 2024.

New GFCs

The following new GFCs have been recently published:

• pay as you earn settlement agreement calculations,
• the apprenticeship levy and the national insurance employment allowance,
• patent box computations, and
• the economic crime levy.

According to HMRC, GFCs “explain HMRC’s view on complex, widely misunderstood or novel risks that can occur across tax regimes” and are published to help taxpayers “avoid non-compliance”. The full range of GFCs published to date is available on GOV.UK.

Pillar Two updated guidance

HMRC has published further Pillar Two guidance which sets out:

• how and when to pay domestic top-up tax and multinational top-up tax, and
• how to use HMRC's online services for replacing the filing member on a Pillar 2 top-up taxes account.

This confirms that the 15-character reference provided at registration must be used when making payments which should be made no later than:

• 30 June 2026 (if the first accounting period the group is required to report top up taxes ends on or before 31 December 2024),
• 18 months after the last day of the group’s accounting period (if the first accounting period the group is required to report top-up taxes ends after 31 December 2024), and
• the later of 30 June 2026 and 15 months after the last day of the group’s accounting period for all other periods.

National Audit Office (NAO) HMRC report

The NAO has published its annual report on HMRC. The report summarises the key relevant information and insights that can be gained from its examinations of HMRC and HMRC’s annual report and accounts and is intended to support the Treasury Committee, committees working with the Department for Business and Trade and the Department for Work and Pensions, and MPs in their examination of HMRC.

The report includes:

• the role and remit of the department,
• how the department is structured,
• where the department spends its money,
• key spending commitments and major programmes/developments,
• the department’s key areas of work, and
• key challenges facing the department this Parliament.

This report updates the NAO’s previous report published in 2019.

Regulations for late payment of tax penalties

The Penalties for Failure to Pay Tax (Schedule 26 to the Finance Act 2021) (Assessments) Regulations 2024 were published last month and entered into force on 4 December 2024. These regulations are aimed at taxpayers who “intentionally avoid a second Late Payment Penalty by not paying their tax before the end of the two-year time limit”.  

The regulations allow HMRC to assess and charge the second late payment penalty where the outstanding tax has not been paid in full, towards the end of the two-year time limit.