Due to the increase in the Bank of England base rate last week, HMRC has since announced the associated increase in its interest rates. The new rates will take effect from Monday 3 July 2023 for quarterly instalment payments, and Tuesday 11 July 2023 for non-quarterly instalments payments. The two new increased rates of interest will be as follows:- late payment interest, set at base rate plus 2.5 percent, will increase to 7.5 percent from 7 percent; and repayment interest, set at base rate minus 1 percent, with a lower limit of 0.5 percent (known as the ‘minimum floor’), will increase to 4 percent from 3.5 percent.

Revenue has published a new Tax and Duty Manual to provide guidance to first-time employees on how to register their first job through either MyGovID or MyAccount.

The Institute is seeking feedback from members on two formal consultations, and we are also considering writing to the Government in relation to the Spring Budget announcement that from 2024 agricultural property relief for Inheritance Tax will be restricted, and will only be available on UK farmland and farm buildings. We are particularly concerned of the impact this will have in Northern Ireland given our geographic proximity to the Republic of Ireland. Get in touch by Monday 10 July with your comments and observations on this, and the two formal consultations below. The Tax Administration Framework Review: information and data – closes 20 July 2023 This seeks views on how HMRC's information and data-gathering powers could be updated to enable digitalisation of services, improve compliance and reduce administrative burdens. Section 6 of the consultation sets out the specific consultation questions. The Tax Administration Framework Review: Creating innovative change through new legislative pilots – closes 20 July 2023 This seeks views on a proposed legislative approach to piloting. HMRC is exploring how it can develop and improve testing prior to wider roll out of change. Section 6 of the consultation sets out the suggested discussion areas. Currently, testing of changes or collaboration with external stakeholders can be limited by legislative inflexibility. This explores the opportunities and challenges of a possible sandbox testing approach, and what safeguards might be necessary and proportionate.

Revenue has confirmed that it intends to make the R&D Specified Return available this week, updated for the amendments introduced in Finance Act 2022. The updated Form CT1 2023 is expected by 10 July 2023. The Specified Return must be completed and submitted via MyEnquiries when filing the Form CT1 2022 where a company is claiming an R&D Tax Credit under sections 766, 766A, 766C and/or 766D TCA 1997.

Do you use HMRC online services? Don’t be caught out by the planned downtime to some services. HMRC are warning about the non-availability of specific services on the HMRC website, a range of services are impacted. Check the relevant page for information on planned downtime. Several services have also been unavailable since Friday 23 June and are expected to reopen today.

The Government has launched a new consultation on tackling non-compliance in the umbrella company market and a new Call for Evidence has been opened on certain share schemes. More details on each are provided below. In addition, a new consultation on how to reform transfer pricing, permanent establishments and Diverted Profits Tax legislation has also been opened. Share schemes As announced at the Spring Budget, a Call for Evidence on the Save As You Earn and Share Incentive Plan shares schemes has been launched which seeks to improve these schemes, and expand their use, by making it easier for businesses to set them up and offer them to employees. This Call for Evidence will close on 25 August 2023. Umbrella company market A consultation, Tackling non-compliance in the umbrella company market, has been opened examining policy options to regulate umbrella companies and tackle non-compliance in the umbrella company market. This consultation will close on 29 August 2023 and follows on from the Governments Call for Evidence: umbrella company market which aimed to ensure that the Government has an up-to-date and well-informed view of how the umbrella company market operates. The Government has published a summary of responses to this consultation which was used to inform the newly launched consultation in this area. Transfer pricing, permanent establishments and the diverted profits tax This consultation  closes on 14 August 2023; HMRC is seeking views on proposals to reform the following UK laws: transfer pricing: pricing transactions between related parties; permanent establishment: basis for taxing UK activities of non-UK resident companies; and the diverted profits tax: anti-avoidance measure for countering arrangements designed to divert profits from the UK. The overall aim is to clarify and modernise the legislation, and ensure it achieves its objectives, while developing simpler legislation that is easier to understand and supports growth by improving tax certainty. HMRC is holding a number of consultation events on the following dates (note the date by which registration for each closes): 30 June (registration closes 26 June); 6 July (registration closes 29 June); and 10 July (registration closes 29 June).

The Minister of State with responsibility for Company Regulation, Dara Calleary TD, has announced the commencement of the European Union (Disclosure of income tax information by certain undertakings and branches) Regulations 2023. The regulations require non-EU multinationals with subsidiaries and branches in the EU to comply with e same reporting obligations as EU multinational undertakings. The Minister commented: “I am pleased to announce the taking effect of the public country-by-country tax reporting regulations, which require for the first time that non-EU multinationals with significant turnover, doing business in the EU must comply with the same tax reporting obligations as EU multinationals. The regulations increase corporate transparency, enhance public scrutiny, and afford an opportunity for multinational enterprises to show the contribution made by their presence in the EU. This helps ensure trust in the fairness and transparency of our tax system and safeguards a level playing field between EU and non-EU multinationals. Ireland has long been a supporter of corporate transparency and good governance in the interests of all stakeholders including employees, investors, competitors and the general public, the new regulations support our ambitions in this regard.” Further information is available on enterprise.gov.ie.

HMRC’s weekly news and information bulletin from 22 June is now available as well as the latest Agent Update 109. HMRC has also provided an update on the actions and takeaways from the February 2023 Stakeholder Conference. The latest Agent Update features:- helping taxpayers steer clear of tax avoidance schemes; publication of the new Code of Practice 9; a new webinar: Agent Forum – working with the agent community; and VAT registration – improving HMRC’s service.

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. The latest Trader Support Service and Borders Weekly Stakeholder Bulletin are also available. And we remind you that the duty reimbursement scheme is expected to open later this week on 30 June. The Institute has lobbied on the need to open the scheme  for several years. Miscellaneous updated guidance etc. Apply for a certificate to confirm you will pay UK National Insurance while self-employed abroad temporarily (CA3837); Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service; Data Element 2/3 Documents and Other Reference Codes (National) of the Customs Declaration Service (CDS); External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service; Customs Declaration Service communication pack; Appendix 1: DE 1/10: Requested and Previous Procedure Codes; Appendix 1 Inventory Exports: DE 1/10: Requested and Previous Procedure Codes; Check if a business holds Authorised Economic Operator status; Attending an inland border facility; List of customs training providers; and Maritime ports and wharves location codes for Data Element 5/23 of the Customs Declaration Service.

Among the issues discussed were the tax treatment of income received under the General Medical Services (GMS) scheme, the draft Tax and Duty Manual on foreign pension lump sums, the impact of the General Block Exemption Regulation (GBER) updates on the Employment Investment Incentive (EII) scheme, and other matters. Revenue has also committed to a review of the procedures it follows when updating its Tax and Duty Manuals (TDMs). The Institute, under the auspices of the CCAB-I, met with Revenue last October to discuss the proposed review. Our representatives asked that a historic database of TDMs could be developed and that TDMs remain available while under review. This is an ongoing issue where TDMs are removed while being reviewed. You can find the minutes from  all of the recent meetings here. The minutes of the most recent meeting will be published shortly also.

We have compiled the latest updates to various HMRC VAT publications, briefs and guidance. Readers should note that there are also numerous updates to VAT guidance and rules due to the end of the EU transition period. HMRC has also updated the VAT road fuel scale charges that apply from 1 May 2023 and also contacted us to advise that it is removing certain VAT Briefs from GOV.UK which are being archived.

HMRC’s latest schedule of live and recorded webinars is now available for booking. Spaces are limited, so take a look now and save your place. An overview of the new alcohol duty structure and rates: book now From 1‌‌‌ August‌‌‌ 2023, alcohol duty will be charged in relation to the strength of the product as opposed to the product type. This webinar will explain the new alcohol structure and rates, including the reduced rates for draught products An overview of the new alcohol duty structure and small producer relief: book now This webinar will provide a background into the new small producer relief, including eligibility criteria, and how to calculate this. Supply chain assurance in the security sector: book now This webinar is for end-users who outsource their security supply and their agents. It will provide further information regarding the risks and the potential consequences of failing to assure your labour supply chain. Capital allowances and vehicles: book now This webinar is part of HMRC’s annual Self-Assessment programme covering the rules for cars, qualifying expenditure, pools and rates, and vehicle hire purchase. The Agent Forum – working with the agent community: book now This webinar aims to raise awareness of the Agent Forum (“AF”) and will look at:- the benefits of using the AF; proper use of the AF, including what HMRC expects from agents and what to expect from HMRC; good practice; and useful hints and tips. A recording is also available to register to view of the webinar UK freeports – examples of tax and customs benefit.