The November edition outlines several changes which will be of particular interest to tax practitioners:
Summary of changes for repayment claims: as outlined in its recent guidance for agents, HMRC has summarised the February 2024 changes which will require agents to register for an Agent Services Account before submitting various income tax repayment claims on behalf of a client. HMRC has now confirmed that this will also apply to form R40 claims (outside of a tax return) for repayment of tax on savings and investments (in addition to P87 and marriage allowance forms). HMRC notes that the new forms must not be used before 26 February.
UK implementation of Pillar Two: HMRC is developing a Pillar Two online service which will be introduced in phases. The first iteration, which HMRC aims to complete by spring 2024, will include registration for the new taxes and allow for payments on account. HMRC also says that it has already ‘issued a direct communication to groups with a UK presence, that we believe are in scope of Pillar 2’.
Relevant motoring expenditure: HMRC is updating its guidance on the types of payments that can fall within the definition of ‘relevant motoring expenditure’ for the purposes of the NICs disregard from earnings, where employees use their own car for business purposes. This follows Upper Tribunal decisions which found that the definition includes not only payments relating to actual use, but also potential and anticipated use of the vehicle. This will affect employees who receive car allowance payments based on anticipated use. HMRC notes that refund claims may need to be made for overpaid contributions.
The November edition outlines several changes which will be of particular interest to tax practitioners:
Summary of changes for repayment claims: as outlined in its recent guidance for agents, HMRC has summarised the February 2024 changes which will require agents to register for an Agent Services Account before submitting various income tax repayment claims on behalf of a client. HMRC has now confirmed that this will also apply to form R40 claims (outside of a tax return) for repayment of tax on savings and investments (in addition to P87 and marriage allowance forms). HMRC notes that the new forms must not be used before 26 February.
UK implementation of Pillar Two: HMRC is developing a Pillar Two online service which will be introduced in phases. The first iteration, which HMRC aims to complete by spring 2024, will include registration for the new taxes and allow for payments on account. HMRC also says that it has already ‘issued a direct communication to groups with a UK presence, that we believe are in scope of Pillar 2’.
Relevant motoring expenditure: HMRC is updating its guidance on the types of payments that can fall within the definition of ‘relevant motoring expenditure’ for the purposes of the NICs disregard from earnings, where employees use their own car for business purposes. This follows Upper Tribunal decisions which found that the definition includes not only payments relating to actual use, but also potential and anticipated use of the vehicle. This will affect employees who receive car allowance payments based on anticipated use. HMRC notes that refund claims may need to be made for overpaid contributions.
