Latest Tax news

This week, read our new February issue of tax.point. In our UK stories, have your say as part of the HMRC Powers Evaluation project. Internationally, the OECD has released its analysis of the economic impact of the proposed international tax reforms arising from the digitalisation of the economy.      Ireland Readers are informed that the February issue of tax.point is now available New online filing facility for the 2019 Form ESS1 is now available on ROS UK Have your say as part of the HMRC Powers Evaluation project Read the latest Agent update International Read the OECD’s analysis on the economic impact of the proposed international tax reforms arising from the digitalisation of the economy

HMRC are now seeking the feedback of our members in respect of various HMRC powers introduced since 2012, as part of the work being undertaken by the Powers and Safeguards evaluation forum.  By way of reminder this forum was established in October 2019 in response to the Financial Secretary to the Treasury’s written ministerial statement  of July 2019 and is a direct outcome of the House of Lords Economic Affairs Committee report “The Powers of HMRC: Treating Taxpayers Fairly”.  HMRC are seeking your feedback in the form of evidence to inform the review. It is intended that the outcome of the review will be a report published in late May 2020. We are therefore now asking members to provide evidence by completing a questionnaire to collect this. If possible, a separate questionnaire should be completed for each specific power or group of powers that are used together.  HMRC advise that responses to question 2 don’t have to answer all of the bullet points – HMRC is looking for the key issues/difficulties that the taxpayer (or agent) experienced in the process of complying with the power(s). Any further information that you are able to provide, to address the bullet points, will be very helpful.  The powers being reviewed are those introduced since 2012 which are not either subject to a separate review or they have only recently been introduced meaning there is little experience of their use.  The list of powers has been colour coded. Those in green are expected to be given the highest priority. Any coloured in orange are also the within scope of the current review with those in blue considered to be outside scope.  We are also happy for members to provide feedback on any other power that has not been listed.  For ease, the powers in green are as follows:-  Cross-border information exchange - Common Reporting Standard data The General Anti-Abuse rule Accelerated Payments and Follower Notices Large businesses required to publish their tax strategies Banking code of conduct Diverted profits tax charging notice Requirement to correct offshore non-compliance The 2 Corporate criminal offence of failing to prevent the facilitation of tax evasion Once evidence has been collected, the forum will meet to discuss specific powers in detail. These discussions will then form the basis of the report prepared by HMRC.   The project timescale is quite short therefore we are asking our members to send completed questionnaires and any other evidence  to leontia.doran@charteredaccountants.ie by Monday 24 February 2020 at the latest. Please cc in Niall Fitzgerald also.  

Agent Update: issue 76 is now available. Following feedback from agents and tax advisors, HMRC has made some small changes to the look of the update. If you would like to contribute to this feedback exercise, it’s not too late. Details of how to respond are within this edition. This issue features technical articles on both diesel and ultra-low emission company vehicles and a new entitlement to Parental Bereavement Leave and Pay from April 2020. Plus, the latest on pension scams, which are devastating – last year alone, the average victim lost £82,000. The next Agent Update is scheduled for April 2020. If you sign up for email alerts, you’ll be notified of the next Agent Update publication.  

The Minister for Public Finance and Digital Economy, presented the Scottish Draft Budget 2020/21 on 6 February 2020. No changes were made to the rates of income tax, however inflationary rises are proposed to the basic and intermediate rate thresholds. In respect of Scotland’s Land and Buildings Transaction Tax, a new 2 percent band was introduced on non-residential leases entered into from 7 February 2020 where net present value of rental income exceeds £2 million. The Scottish Government and Revenue Scotland, the body responsible for the collection and management of Scotland’s devolved taxes, have also published “Working together on tax”. This sets out the basis on which the Government and tax authority work together to develop and maintain the devolved tax system, and supplements the detailed framework document concerning the governance, financing and operations of Revenue Scotland.

HMRC's Talking Points webinars are designed to provide information, guidance and tips on tax issues. See the list of Talking Points webinars coming up. There are a limited number of spaces, so save your place now. If you have any questions about what the review means for your clients, please send them to team.agentengagement@hmrc.gov.uk prior to the webinar, including the title of the webinar in the ‘Subject’ line of your email. We will answer as many as we can on the day. Off-payroll working rules from April 2020:Choose a date and time VAT reverse charge on construction services: Choose a date and time Making Tax Digital – latest update: Choose a date and time Capital Allowances for the self-employed: Wednesday 4 March – midday to 1pm Statutory Maternity and Paternity Pay: Thursday 12 March  – midday to 1pm

HMRC guidance on crypto assets and changes to the employment allowance feature this week HMRC has updated its guidance on crypto assets for individuals and where they are located A guidance note explaining the changes to the VAT treatment of intra-EU chain transactions and to the conditions for zero rating intra-EU supplies of goods has been published The guidance on how to bring goods into the UK from outside the EU, including how much tax and duty you’ll need to pay and whether you need to get a licence or certificate has been updated From 6 April 2020, the Employment Allowance: excluded persons regulations 2020 restricts access to the Employment Allowance to only those employers who have incurred a secondary Class 1 National Insurance contributions liability of less than £100,000 in the tax year immediately prior to the year of claim HMRC has updated the list (List 3) of professional bodies and learned societies, approved by HMRC for the purpose of section 344 ITEPA 2003 (allowable deductions from earnings for fees and subscriptions paid to professional bodies/learned societies) Check the updated list of VAT appeals that HMRC has lost, or partly lost, that could have implications for other businesses The latest VAT Bulletin has been published

The new online filing facility for the 2019 Form ESS1 – Return of Information by the Trustees of an Approved Profit-Sharing Scheme is now available within the Share Scheme Reporting Obligation section on ROS.  The Revenue Share Schemes Manual - Chapter 10, has been amended to reflect the new online filing facility.   

Revenue has created Tax and Duty Manual Part 07-01-42 to set out Revenue’s position regarding the tax treatment of certain education related payments.   The manual covers the following exemptions introduced by Finance Act 2019:  Section 192F Taxes Consolidation Act 1997 which exempts Student Universal Support Ireland (SUSI) payments from income tax and USC. Section 192G Taxes Consolidation Act 1997 which exempts Further Education Training Allowance payments from income tax and USC. Updates for Finance Act 2019, other tax legislation and Revenue guidance on TaxSource and TaxSource Total, will be released shortly

In the February issue of tax.point, Cormac Kelleher and Stephen Flanagan write on the EU Mandatory Disclosure Regime DAC6.  Read Clare Fitzgerald’s article on the digital future for tax advisors.  Tax developments in Ireland, the UK and Internationally and Brexit updates also feature.  Recent Tax Appeal Commission determinations and UK case law are summarised.    Subscribers will receive their tax.point journal in the post this week. TaxSource Total is now updated with the February issue of tax.point.  

The minutes of the Main TALC meeting held in December 2019 were approved at a meeting of the Main TALC committee last week.  Among the items reported in the minutes include the proposals for the Dividend Withholding Tax regime and the work of the MyEnquiries TALC subgroup.   

In his regular column in the Sunday Business Post, Dr Brian Keegan talks about how the next Government faces some big fiscal choices, but it remains to be seen if the public opinion will shift left as political developments emerge post General Election 2020. Additionally, Dr Keegan’s analysis of the Sinn Fein’s election manifesto was featured in the Sunday Times.

Mali is the 161st member to join the Global Forum on Transparency and Exchange of Information for Tax Purposes.