Miscellaneous updates – HMRC does U-turn on change in tax treatment of certain double cab pick ups

Since we reported last week on HMRC changing the income tax treatment of certain double cab pick-ups from 1 July 2024, the UK Government has announced that after listening to the views of farmers and the motoring industry, there will be no change in treatment, hence HMRC has withdrawn the revised guidance. This week updated guidance has been published on the marriage allowance with changes made to the sections on ‘how to apply’ and ‘how to cancel’.  

HMRC is consulting on updated guidance for R&D tax relief and is holding a series of webinars on the relief. The 2024/25 rates and thresholds for employers have been published and the members of HMRC’s Joint Vat Consultative Committee have received notification that Revenue and Customs Brief 2/23 is being withdrawn. And finally, the latest Agent update: issue 117 is available as is the most recent News and Information Bulletin from HMRC.  

R&D tax relief  

HMRC has published draft guidance for consultation on the changes to R&D tax relief in relation to overseas expenditure and contracted-out R&D both of which take effect from 1 April 2024. The consultation closes on 1 March 2024. Readers are reminded that the new merged R&D tax relief regime also commences from 1 April 2024. 

HMRC is also running a series of webinars on R&D tax relief which will cover the following:- 

• what qualifies as R&D; 

• how to claim correctly; and 

• what the new merged scheme entails.  

The webinars will also include information on the enhanced support available for R&D intensive companies via the higher payable tax credit. 

Register for the first webinar which takes place tomorrow, Tuesday 27 February, at: https://register.gotowebinar.com/rt/2324882589787388000?source=February-HMRC-External. 

Withdrawal of Revenue and Customs Brief 2/23  

Revenue and Customs Brief 2/23 “VAT and value shifting consultation update – apportionment of consideration” which was published in March 2023, is being withdrawn as HMRC now consider that the most effective way to address valuation concerns is to provide improved guidance, rather than legislative change. Amendments have therefore been made to the relevant guidance at section 31 of Notice 700 and HMRC manual section VATVAL3000. 

In addition, a new Guideline for Compliance (2/2023) has been published which outlines HMRCs’ recommended approach to apportionment of consideration and approaches that in HMRC’s opinion increase or lower tax compliance risk. Guideline for Compliance 2/2023 can be accessed via the link in HMRC manual at VATVAL3700.  

Latest Agent Update 

Agent Update: issue 117 is available now. Get the latest guidance and information including:- 

• National Insurance contributions rates reminder; 

• HMRC and the Border Force are publishing a new Illicit Tobacco Strategy; 

• HMRC’s Agent Forum – important information for all users; 

• Registering for the new digital system that manages 'Union goods'; and 

• The Corporate Interest Restriction – an update from HMRC.