Revenue has updated its guidance on Road Haulier Drivers (Employee) – Subsistence Rates to reflect the increase in subsistence rates effective from 29 January 2025. The historical subsistence rates for periods prior to 30 June 2019 have been removed but are still available in archived versions of the manual.

The Chancellor of the Exchequer Rachel Reeves will deliver the Spring Statement later this week on Wednesday 26 March. It is expected that her speech will be delivered after Prime Minister’s questions at around 12.30pm. Speculation has been rife recently that the Chancellor may be forced to abandon the Government’s stated policy of only announcing tax changes at one fiscal event per year in the Autumn. In recent days the Chancellor has ruled out further tax rises, but not other minor tax changes. We will be reporting on the Spring Statement in full in next Monday’s edition of Chartered Accountants Tax News. The Institute for Fiscal Studies has published two useful articles on the upcoming Spring Statement: https://ifs.org.uk/articles/todays-ons-figures-reinforce-challenges-next-weeks-spring-statement, and https://ifs.org.uk/articles/chancellor-cannot-hide-ever-her-big-political-choice. The House of Commons Library has also published a background briefing. The current expectation is therefore that the Spring Statement will mainly be an economic update coupled with the announcement of spending cuts hence any tax changes are expected to be minor, with the Chancellor delaying any significant tax announcements to the autumn. However, at a time of significant geopolitical disruption, the Spring Statement remains important and may give hints as to what we can expect from the Summer 2025 spending review and the Autumn Budget. Tax and other consultations are expected to be launched in conjunction with the Spring Statement, including some on the Corporate Tax Roadmap. This was confirmed by the Exchequer Secretary to the Treasury who announced in a recent conference speech on 11 March that the following consultations will open in Spring 2025: Closing in on promoters of marketed tax avoidance, A consultation on how businesses can be better supported when seeking to deliver major projects in the UK, Use of advance clearances in Research and Development tax reliefs, and Enhancing HMRC’s powers to deal with tax advisers who facilitate non-compliance. Use HMRC’s check the status of tax policy consultations page to keep abreast of consultations. As more consultations open in the coming weeks, these will appear on this page. HMRC has stated that there will be a larger than normal number of consultations being opened with overlapping periods and it recognises that this will have an impact on the ability of stakeholders to respond.

Revenue has updated its guidance on the Return Preparation Facility to confirm the VAT 3 form has been added to the Return Preparation Facility (RPF) and to outline the correct file extension for the Form 46 Company. The RFP is intended to gradually replace the ROS offline application for most forms. However, the offline application will still be used for certain forms. Appendix 1 in the manual includes details of the forms available in the RFP.  Additional forms will be added to RFP and as newer versions of forms are available in RFP, they will no longer be available in the offline application. The RFP can be accessed through a link on the ROS login page and forms prepared using the facility must be uploaded using ROS online to sign and submit the return.

Revenue has updated its Guide to Self-Assessment to incorporate the contents of the manual on the application of Part 41A – full self-assessment. The updated guide outlines the principles of the self-assessment system for Income Tax and Capital Gains Tax. The guide includes details on tax registration, filings and tax payments.

HMRC has commenced sending letters on Making Tax Digital (MTD) for income tax to agents it believes will have clients mandated to meet the requirements of MTD when it commences from April 2026 for unincorporated sole trade businesses and landlords with turnover exceeding £50,000. The letters will be followed by targeted letters to the same agent’s potentially mandated clients. This is part of a wider comms plan to raise awareness of MTD. The agent letters are available here and the client letters are available here. HMRC is also starting to host webinars on MTD for income tax. The webinar on 25 March 2025 is already full but there is availability for the next webinar on 3 April 2025. These are the first in a series of three webinars aimed at agents. The webinar on 3 April will focus on how to get ready and sign up for MTD income tax. HMRC has also added an additional software provider, IRIS accountancy suite, to the list of software products currently available for taxpayers who have volunteered to test MTD for income tax. This brings the total number of software products to 18.  

The 2024 update of the OECD Investment Tax Incentives Database  has been published. The database highlights trends on the design, targeting and granting of corporate income tax (CIT) incentives in 70 economies, and whether they support sustainable development objectives. It also provides insights into the evolution of CIT incentives over the 2022–24 period.

In this week’s miscellaneous updates, HMRC has released a new online calculator to work out the adjustment needed for disposals of assets on or after 30 October 2024 when the rates of capital gains tax changed and as expected, the UK has revoked its Double Taxation Treaties with Russia and Belarus. HMRC is holding a webinar on voluntary payrolling of benefits and has sent an email about year-end processes for payroll. The Institute for Fiscal Studies (IFS) has announced the appointment of its next Director 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. Mid-year CGT rate changes HMRC has published a new online calculator to work out the self-assessment (SA) adjustment needed for disposals of chargeable assets on or after 30 October 2024 when the rates of CGT changed at the Autumn Budget 2024.  This is because the  2024/25 SA return will not automatically calculate using the correct CGT rates for the 2024/25 if there are disposals on or after 30 October 2024. Hence taxpayers may need to work out an adjustment to the tax automatically calculated and can use the adjustment calculator to do this. Revocation of Russia and Belarus tax treaties Following HMRC’s announcement in February that the UK would be suspending its Double Taxation Treaties with Russia and Belarus, legislation revoking the original Orders giving effect to the UK-Russia and UK-Belarus Double Taxation Treaties has now been introduced via statutory instruments. These will both cease to have effect from: 6 April 2025 for Income Tax and Capital Gains Tax, and 1 April 2025 for Corporation Tax. HMRC webinar on voluntary payrolling of benefits and advice for employer’s finalising 2024/25 HMRC is holding a webinar on voluntary payrolling of benefits which will become mandatory for most benefits in kind in real time from April 2026 and the below information has been provided to employers on 2024/25 year-end processes for payroll: “Finishing the 2024 to 2025 tax year and starting the 2025 to 2026 tax year HMRC have published important information for employers on GOV‌‌‌.UK, which includes: • help with finishing the current tax year 2024 to 2025 • starting the new tax year 2025 to 2026, by using our guidance on P9X (2025) Tax codes to use from 6‌‌‌April 2025 • information on the rates, limits and changes for 2025 to 2026 • the 'Employer Bulletin: February 2025' – this edition contains information about sending in your final submissions for the year.” Next IFS director announced The IFS has announced that Helen Miller has been appointed as its next Director. The current Director, Paul Johnson, will step down in July 2025 after over 14 years at the helm. Paul was also Chair of the Independent Fiscal Commission for Northern Ireland.

Revenue has updated two Tax and Duty Manuals relating to the guidelines for registering a site for Residential Zoned Land Tax (RZLT) and for submitting a transfer or sale return for a site subject to RZLT. The updates are as follows: The updated Tax and Duty manual RZLT Registration includes the following information: How to include details at site registration of multiple parcel ID’s issued by a local authority, Updating the site registration field for the date RZLT may or would be charged but for the commencement of non-residential development, and Information for non-resident owners on obtaining a tax registration number (TRN). The Tax and Duty manual RZLT Site Sale or Transfer Guidelines has been updated to include information on how to view a payment of RZLT and print a payment confirmation for a site.

The OECD has published a working paper on the impact corporate income tax (CIT) design can have on investment by the private sector in clean technologies to help achieve net-zero climate goals. Setting out a conceptual framework of the key channels through which CIT can influence investment in clean technologies, it also identifies policy implications and potential policy options to enhance the alignment of CIT with climate policy objectives.

In this week’s post EU exit corner, we bring you the latest guidance updates and publications relevant in the post EU exit environment. The most recent Trader Support Service bulletin is also available as is the latest Brexit and Beyond newsletter from the Northern Ireland Assembly EU Affairs team. HMRC has also announced that the parcels and freights changes under the Windsor Framework which were originally due to commence from 30 September 2024 and which were then delayed to 31 March 2025 have now been further delayed and will commence from 1 May 2025. HMRC’s announcement last week was as follows: ‘Following the guidance issued in September 2024, there has been extensive preparatory work undertaken for the new arrangements for the movement of goods from Great Britain to Northern Ireland by parcels or freight set out in the Windsor Framework. As a result, and subject to the relevant procedures, the new arrangements as set out in the Windsor Framework are planned to take effect from 1 May 2025.’ The Institute has been discussing these changes with HMRC via the NI Joint Customs Consultative Committee and was concerned at the low level of awareness among businesses. Minutes from the most recent meeting are available here and here (note that all references to 31 March 2025 in these documents should now be taken to be 1 May 2025). We are pleased to see that a further month is being provided to assist businesses in their preparations given the low levels of awareness of the changes for many businesses. It is therefore imperative that businesses take action now to consider the specific impact of these changes on their supply chain and plan accordingly for a commencement date of 1 May 2025 as we do not expect any further delay will be announced. The following guidance has therefore been updated accordingly: Internal Market Movements from Great Britain to Northern Ireland, Submitting the Internal Market Movement Information, Sending parcels to and from Northern Ireland, Sending parcels between Great Britain and Northern Ireland under the Windsor Framework, Sending parcels from Great Britain to Northern Ireland between private individuals, How to send parcels from a business in Great Britain to a private individual or a business in Northern Ireland, How to move parcels from Great Britain to Northern Ireland for parcel carriers, and Data requirements for parcel carriers who move consumer parcels from Great Britain to Northern Ireland. Miscellaneous guidance updates and publications Check if you can use transit to move goods to the EU and Common Transit Convention countries, Known error workarounds for the Customs Declaration Service (CDS), Designated export place (DEP) codes for Data Element 5/23 of the Customs Declaration Service, Report a problem using the Customs Declaration Service, and External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service.

The Youth Policy Dialogue with Commissioner Hoekstra took place on Thursday, 6 February. Twenty young people from across Europe gathered to discuss EU climate action and taxation, focused on fair and green taxation for a competitive EU.

The Minister for Finance, Paschal Donohoe has recently signed the statutory instrument transposing Council Directive (EU) 2020/285 on the special VAT scheme for small enterprises into Irish law (“the SME scheme”).   From 1 January 2025, the SME scheme allows small enterprises to avail of the VAT registration thresholds in other Member States. If eligible, businesses can supply goods and services in another Member State without a requirement to register for VAT thus alleviating their VAT compliance obligations. In general, to be eligible to use the SME scheme in another Member State, an Irish business must:  be established for VAT purposes in Ireland only,  not exceed the domestic turnover threshold(s) of the other Member State(s) where supplies are made,  not exceed the Union turnover threshold of €100,000,  be registered in Ireland to use the scheme, and        file quarterly reports once registered.  An Irish business wishing to register to use the SME scheme in other Member States must make a formal application to Revenue in Ireland.  Revenue has a dedicated webpage Overview of the EU VAT SME Scheme which provides further details on the scheme.