HMRC’s business risk review process for large corporate taxpayers will change from 1 October 2019
Let’s Talk TaxTopical Tax
HMRC’s business risk review process for large corporate taxpayers will change from 1 October 2019
HMRC’s business risk review process for large corporate taxpayers will change from 1 October 2019
Wed 17 Jul 2019
HMRC has indicated it will be rolling out its new business risk review categorisation for large business from 1 October 2019.
This follows consultation in December 2017 and the subsequent operation of a pilot by HMRC. Currently there are only two categories of HMRC tax compliance risk assessment for large corporates – low risk and non-low risk (see TCRM3400). The new risk assessment process will provide for four categories of risk:
- low risk;
- moderate risk;
- moderate-high risk; and
- high risk.
Large business clients with a customer compliance manager should be familiar with the current business risk review process. Please get in touch with a member of the Mazars corporate tax team for a discussion of your business’s
New Business Risk Review (BRR) process in place from 1 October 2019
HMRC has updated its business risk review guidance to deal with the new expanded category assessment that applies from 1 October 2019. The BRR is the process by which HMRC evaluates and discusses with a large business where it thinks they sit on the compliance spectrum and in particular whether they meet the criteria for […]
Consultation on refinements to the hybrid and other mismatch rules
We have previously highlighted difficulties with the application of TIOPA 2010 s259ID income in a December 2019 tax blog. HMRC is taking the opportunity to consult on refining the hybrid and other mismatch rules following publication of the draft Finance Bill 2020 legislation. Dealing with the hybrid and other mismatches legislation is complex. For a […]
New Business Risk Review (BRR) process in place from 1 October 2019
HMRC has updated its business risk review guidance to deal with the new expanded category assessment that applies from 1 October 2019. The BRR is the process by which HMRC evaluates and discusses with a large business where it thinks they sit on the compliance spectrum and in particular whether they meet the criteria for […]
Changes to VAT reduced rate for energy saving materials from 1 October 2019
Currently, under VATA 1994 Sch7A group 2, the supply of energy saving materials and their installation attract the reduced rate of VAT if the supply is made in residential accommodation. SI 2019/958 limits the scope of the reduced rate with effect for supplies made on or after 1 October 2019, unless they were both paid […]
Corporation tax deduction on option exercises impacted by method of settling employment tax
We have become aware of a developing issue regarding the CT deduction on share option exercises, which could mean that some companies have over-claimed this relief. This note only relates to CT and does not impact the income tax treatment for employees. The method of settling tax on share option exercises can impact the CTA […]
Corporation tax measures and letters from HMRC
HMRC is currently sending out letters to certain large business corporate taxpayers reminding them of three important areas where there has been recent change: Corporate interest restriction (CIR) rules Hybrid mismatch arrangements Corporate loss relief reform For further guidance on the above measures, please get in touch with National Tax or the Mazars corporate tax […]
Response to the HMRC consultation on business risk review
Following consultation on its large business risk review (BRR) programme, HMRC has commented in the response document that it will develop a new version of the BRR reflecting some of the proposals from that consultation. The new version will be piloted later in 2018 with a defined group of businesses, alongside existing BRRs. As long […]
HMRC consultation on risk profiling for large business
For the last 10 years HMRC has been using a ‘business risk review’ process to profile large businesses to assist in its management of tax compliance for this sector. This categorises businesses into ‘low-risk’ and ‘non low-risk’. It is now consulting on possible changes to that review process, potentially including a greater number of categories, […]
HMRC publish draft guidance on large business tax strategy requirement
Clause 149 and Schedule 19 to the draft Finance Bill 2016 cover the requirement for large business to publish their tax strategies annually, and these update the previously issued draft legislation in December 2015. In addition, HMRC has now issued draft guidance on these new provisions. This new requirement will apply to financial years beginning […]
HMRC consultation on improving large business tax compliance
Following an announcement at the Summer Budget 2015, HMRC released a consultation in July 2015 regarding a package of measures which are intended to improve the tax compliance of large businesses. Responses to the consultation are required by 14 October 2015 and will be published later in the year, although no implementation date for these […]