Last week it was confirmed that Lord Livermore has been appointed to the role of Financial Secretary to the Treasury (FST) in the new Labour government. The FST is the Minister responsible for a range of areas, including HMRC and tax policy. Accountancy Daily sets out more on what might be expected from the new Minister and his previous roles and experience in government. As the dust begins to settle after the UK General Election with new Ministers sworn in last week, the Labour government began preparing for the opening of parliament which took place earlier this week.  This took place on Wednesday 17 July with the King’s Speech outlining the new Labour government’s legislative agenda for the next year. More on this will feature in Monday's edition of Chartered Accountants Tax News. The date for Labour’s first budget is also expected to be confirmed before MPs break up for summer recess at the end of next week. 

The second 2023/24 self-assessment payment on account for income tax and Class 4 National Insurance Contributions (NICs) is due for payment on or before midnight on Wednesday 31 July 2024. Each payment on account is half of the previous year’s tax bill. Information on time to pay arrangements and how to apply is available on GOV.UK.  Anyone who is self-employed is required to make two payments on account for 2023/24 unless:  Their 2022/23 Self-Assessment tax bill was less than £1,000, or  More than 80 percent of all the tax owed in 2022/23 was deducted at source, for example via PAYE.  If a taxpayer knows that their tax bill for 2023/24 is going to be lower than that in 2022/23, a claim can be made to HMRC to reduce payments on account.  Each payment on account made should be 50 percent of the person’s total income tax and Class 4 NICs liability for 2022/23. If the final tax liability in 2023/24 is greater than the total payments on account made, a balancing payment will be due on or before 31 January 2025.   

In this week’s miscellaneous updates, HMRC has launched a new VAT registration estimator tool, and it is also confirmed that from next month, VAT registration changes will only be able to be made by agents online. A webinar is being held later this week on the new additional information form for the creative sector reliefs and guidance has been published on the abolition of stamp duty land tax (SDLT) multiple dwellings relief (MDR). Scotland’s visitor levy legislation has completed the necessary legislative stages in the Scottish parliament and finally, in an update on GOV.UK, HMRC no longer automatically issue PAYE refunds.  HMRC launches VAT registration estimator tool  HMRC has now launched its new VAT registration estimator guidance tool. A Welsh version of the tool is also available. The tool is designed to help businesses estimate what registering for VAT may mean for them and has been developed after feedback from small businesses suggested that an online tool would be helpful to show when their turnover could require businesses to register for VAT and the potential effect on profits.  The estimator also links to further information about the registration process and aims to assist businesses when considering voluntary registration by allowing the business to experiment with different levels of inputs and outputs in the tool.   The accompanying Press Release confirming the tool’s launch also contains a helpful reminder of the UK’s VAT registration rules.  VAT registration changes online only by agents from 5 August  From Monday 5‌‌‌ August‌‌‌ 2024, any request by an agent to change a client’s VAT registration details should only be made using their online Agent Services Account, and not by using the VAT484 form or any other postal or electronic means. HMRC has set out more details on this upcoming change in an email.  Webinar on creative industry tax reliefs  HMRC is holding a webinar later this week on 18 July which is specifically covering the new  additional information form for creative industry tax reliefs. This new  online HMRC form must be used from 1 April 2024 by a company claiming creative industry tax relief by way of providing supporting evidence for the claim.  Abolition of SDLT MDR   As announced in the Spring Budget 2024, Finance (No. 2) Act 2024 contains the legislation which has abolished SDLT MDR. This applies to land transactions in England and Northern Ireland if the effective date is on or after 1 June 2024, subject to transitional arrangements. HMRC has therefore updated its SDLT manual to include guidance on this.   MDR is still available in Scotland under its land and buildings transactions tax regime. Wales is currently consulting on the potential abolition of its corresponding legislation within the land transactions tax regime.   Scottish visitor levy passed   The legislation which will implement Scotland’s new visitor levy has passed all stages in the Scottish parliament. The Visitor Levy (Scotland) bill will enable local authorities in Scotland to apply a levy on overnight stays. All revenue raised is to be reinvested in services and facilities largely used by tourists and business visitors. Councils that will be seeking to introduce the levy will only be able to do so after having consulted with local communities, businesses, and tourism organisations. It is expected that the earliest the levy could come into force is spring 2026.   HMRC no longer automatically issue PAYE cheque refunds  In an update on the GOV.UK page on tax overpayments and underpayments, HMRC has essentially confirmed that it no longer automatically issues PAYE refunds by cheque. Individual employees must instead register a claim online to ensure they receive any refund due. This change is another strand in HMRC’s ongoing strategy to drive services online usage.   Cheques are still available if requested, but these will take up to 42 days or six weeks to issue compared to five working days if the refund is instead claimed online.   The July 2024 Employer Bulletin was also recently published and sets out updates on a range of areas for employers. 

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. The most recent Trader Support Service bulletin is also available.   Miscellaneous updated guidance etc.   Recently updated guidance, and publications relevant to EU exit are set out below:  Moving processed or repaired goods into free circulation or re-exporting them  Transit newsletters — HMRC updates  Declare your goods to authorised use and completing authorised use  Authorised Consignee Temporary Storage (ACTS) location codes for Data Element 5/23 of the Customs Declaration Service  Check if a business holds Authorised Economic Operator status  List of customs training providers  Search the register of customs agents and fast parcel operators 

Statutory corporate tax rates have stabilised worldwide after a lengthy period of falling rates, according to new OECD data released last week. The 2024 edition of OECD Corporate Tax Statistics shows that average statutory corporate income tax (CIT) rates have remained steady at 21.1% over the past three years. This follows a two-decade period that saw average statutory CIT rates decline from 28% in 2000 to 21.1% in 2021.  

Revenue has incorporated the contents of the Tax and Duty Manual - “Self Assessment – processing/screening of returns of companies in liquidation, death  cases, capital gains tax returns of non-residents and returns on which an expression of doubt has been made”- into a number of manuals impacted by the new guidelines.  The updated manuals are:  Part 46-01-01 Dealing with death cases  Part 46-01-02 Requests for clearance in death cases Collection Manual - Liquidation of Companies and other Company Law Issues Part 45-01-05 - Requests for Clearance – Capital Gains Tax and Non-Resident Vendors Part 41-00-09A - Self-assessment: processing/screening of returns on which an expression of doubt has been made.

Following the recent publication of Revenue's new guidelines for determining employment status for taxation purposes (which applies the new test outlined in Karshan), Revenue has since updated a number of Tax and Duty manuals which are impacted by the new guidelines.  The updated manuals are:  Taxation of Couriers Code of Practice on Determining Employment Status (Employed or Self-Employed) Part-time Lecturers/Teachers/Trainers Agency Workers Individuals described as ‘locums’ engaged in the fields of medicine, health care and pharmacy Taxation of Exam Setters, Exam Correctors, Exam Attendants, Invigilators, etc. National Co-op Farm Relief Service Operators

Revenue has updated the Tax and Duty Manual regarding the taxation of foreign retirement lump sums.   The updated manual includes:  Guidance to the effect that when determining the tax-free amount which is available on a foreign pension lump sum, this should take account of the value of all foreign lump sum payments paid on or after 1 January 2023, whether or not such payments are chargeable to Irish tax under section 200A TCA 1997 (Paragraph 4.1). A new example 8 has also been included.  Guidance that the value of a foreign pension arrangement, as defined in section 200A TCA 1997, is not taken into account for Standard Fund Threshold purposes (Paragraph 4.3.1).  Guidance on Revenue’s treatment of foreign pension lump sums paid to resident taxpayers before 1 January 2023 (paragraph 12). 

Revenue has updated the Tax and Duty Manual which provides guidance on Save As you Earn Schemes (SAYE). The updated manual reflects recent legislative changes to the taxation of unapproved share options (section 12.11).  Under certain circumstances, a SAYE (Save As You Earn) option may be treated as an unapproved share option. Gains realised on or after 1 January 2024 which are chargeable to tax under section 128 TCA 1997 are no longer taxed under self-assessment. From 1 January 2024 the employer is obliged to remit the relevant taxes through payroll. 

Revenue has updated the Tax and Duty Manual regarding the Research and Development (R&D) Corporation Tax Credit to incorporate the changes to the R&D credit introduced by Finance (No.2) Act 2023. These changes apply in respect of accounting periods commencing on or after 1 January 2024.  Key changes introduced to Part 29 by Finance (No. 2) Act 2023 include:  Increase in the rate of the R&D credit to 30%  Increase in the first instalment threshold from €25,000 to €30,000  The introduction of a pre-filing notification requirement  The manual is also updated to revise references to the use of the R&D Specified Return 2022, as it is no longer required to submit a specified return for claims going forward. 

Revenue has updated the Tax and Duty Manual which provides guidance on the Special Assignee Relief Programme (SARP). The updated manual provides new guidance on the calculation of SARP relief in re-grossed net pay/benefits cases (section 7.1.3). 

Revenue has updated the Tax and Duty Manual which concerns the publication of State Aid awards granted to individual taxpayers to reflect the current State aid numbers for several schemes:  The revised threshold for publication of €100,000 (previously €500,000) for aid granted under the General Block Exemption Regulation, i.e., Commission Regulation (EU) No 651/2014 (as amended)  The revised cumulative lifetime limit for Young Trained Farmers of €100,000 (previously €70,000) under Article 18 of the Agricultural Block Exemption Regulation, i.e., Commission Regulation (EU) 2022/2472  The expiration of the Temporary Business Energy Support Scheme  Other general updates.