Prioritisation of HMRC projects
Prioritisation of HMRC projects
Mon 14 May 2018
At a Public Accounts Committee (PAC) oral evidence session on HMRC’s performance, HMRC indicated they were having to delay certain projects in order to accommodate extra workload created by Brexit. HMRC has informed the CIOT and ATT of some of the affected projects (see the link here).
There is also an HMRC update that has been issued to stakeholders. Extracts from that update include:
EU exit
The new Customs Declaration Service (CDS)….is on track to be delivered by January 2019. The CHIEF system is also being upgraded so that it can handle a greater number of declarations. CHIEF and CDS will be run in tandem during transition to give extra assurance.
Individuals
The decision has been taken to delay the introduction of further digital services for individuals. Progress will be halted on introducing simple assessments and real time updating of PAYE codes. MTD for individuals has made real progress, so the foundations have been laid to enable HMRC to return to this in the future. People will still be encouraged to take up Personal Tax Accounts, but digital services impacting fewer customers will be paused (this affects those paying IHT, those applying for tax advantaged venture capital schemes, and PAYE settlement agreements).
Business
The pace at which business will be required to keep digital records and send information through MTD has been slowed to make the transition as smooth as possible for small business. The delivery of MTD for VAT is on track for April 2019. Further MTD for business will not be mandated before 2020.
Ministerial priorities
Work will continue on funded measures arising from the Budget and Autumn Statement. This includes: Soft drinks industry levy; the Trust registration service; work to tackle avoidance schemes that seek to exploit tax and NIC through disguised remuneration and salary sacrifice arrangements; and work to tackle non-compliant overseas suppliers selling goods to UK customers.
Regional centres
The move to 13 regional centres is part of the transformation plan and will continue.
To discuss any issues arising from the above points or any other tax matters, please get in touch with a member of the Mazars tax team.
Recent Government updates on Brexit and potential tax implications
The UK has issued 11 papers on Brexit issues between 15 and 31 August. These are listed below, and can be found along with other Brexit papers on the Government webpage on Article 50 and negotiations with the EU. The papers are listed under the relevant headings; Position papers, Future partnership papers, Technical notes and background […]
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Any colour you like, so long as it’s taxed
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European Commission (EC) information on the implications of Brexit
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Re-organisations using UK provisions implementing the EU cross border mergers directive
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UK VAT liability of on-line supplies of goods received by UK resident customers from a Dutch warehouse
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Action on outstanding EU law tax disputes prior to Brexit
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Draft measures for Finance Bill 2017/18
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As a tax year ends, a new tax year begins….
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Making Tax Digital – Delayed but still coming
The Government’s proposal for Making Tax Digital have come into pretty widespread criticism, not least from the Public Accounts Committee. Criticisms have ranged from it being unworkable and unrealistic to costly and ultimately unnecessary – yet HMRC and the Government appear intent on clinging to the wreckage, despite every indication that this particular boat might […]
Payrolling benefits v submitting forms P11D – points to consider before registering…
Employers can now voluntarily collect the tax via payroll on benefits provided to employees/Directors without having to submit forms P11D to HMRC. This process will cover most benefits except for living accommodation and beneficial loans. It remains possible to continue to deal with employee benefits through forms P11D (we understand that forms P11D will be […]
Optional Remuneration Arrangements (OpRA) – further clarification
In our last blog on optional remuneration arrangements, we discussed the draft legislation which was published on 5 December 2016 and what employers need to know. However, we discussed a number of areas where the meaning and application of the draft legislation was unclear. We met with HMRC earlier this month, as an opportunity to […]
‘Optional Remuneration’ (salary sacrifice) changes, what does this mean for employers?
The Government for some time has been concerned about the way in which the provision of benefits has evolved over the years with a growing market for flexible benefits, often combined with salary sacrifice arrangements. It recognises that such arrangements allow employers to attract and retain employees as part of their overall remuneration package in […]
Highlights for employers from the Autumn Statement 2016
Chancellor of the Exchequer Phillip Hammond presented the Autumn Statement on 23 November 2016 outlining key facets of the government’s plans following the Brexit referendum result. While the focus was on productivity and investment there were a number of updates in the employment tax arena. In this article we highlight the key changes and opportunities […]
Implications for VAT of Brexit transition withdrawal agreement
On 19 March 2018 the EU and UK reached agreement on the withdrawal arrangements for Brexit. The UK will leave the EU on 29 March 2019, but the transition period will last until 31 December 2020. In relation to Customs duty and VAT and excise duty, the following points should be noted: The existing customs […]
Salary sacrifice – some expected… some not expected
In our blog of August we set out the proposed changes to salary sacrifice arrangements as detailed in HMRC’s consultation document. The Chancellor today provided certainty of these changes from April 2017. What’s the issue? Employers choose to remunerate their employees in a range of different ways in addition to a basic cash salary and there […]
The final nail in the coffin for salary sacrifice…well almost!
In the Autumn Statement 2015 the government announced that it would be monitoring the use of salary sacrifice arrangements and at Budget 2016 said it was considering limiting the range of benefits that attract tax and National Insurance Contributions (NICs) savings. So it’s no surprise that HMRC has issued a Consultation Document in which it […]
Brexit and mobile workers
Following the vote for the UK to leave the European Union today we are aware that many, particularly the employers of European nationals, will be questioning what this means for them and their employees going forward. Firstly it is important to reiterate that it is clear nothing is going to change overnight, with confirmation that […]
Brexit – the tax implications
The result of the referendum for the UK to leave the EU was announced in the early hours today; a result with potentially very significant economic implications for the country. However, this is only the start, as the UK will not actually leave the EU for at least another two years, so whilst there is […]
Brexit – implications for employee share plans
Amongst the divided opinions it seems one thing can be agreed, that is the need to overcome fears, defeat indecision and avoid a hiatus limbo of non-productivity. As we are assured, nothing changes immediately, however we think it prudent to consider what this historic decision might mean in the context of employee share plans. In […]
Employment tax changes from 6 April 2016 – Are you ready?
6 April, the start of the tax year and there are a number of significant changes to the employment tax rules which are effective from today. It’s crucial that all employers are aware of these and consider the impact they may have on their internal processes and controls environment. Here are some of the changes: […]
Auto-enrolment – The key question for FDs: How to fund it and still contain payroll costs? – Is a Share Incentive Plan a solution?
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Employment Tax Simplification: What was expected, not there, and new…
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More From the Budget on Employment Tax
Vaneeta Khurana highlights a few more employment tax points from the July Budget 2015: • Salary sacrifice arrangements can allow some employees and employers to reduce the income tax and National Insurance that they pay on remuneration. They are becoming increasingly popular and the cost to the taxpayer is rising. The government will actively monitor the growth […]
New tax-free childcare – is it the end of salary sacrifice for childcare vouchers from autumn this year?
As you may be aware, from autumn this year (date to be confirmed), the existing childcare voucher scheme that we are familiar with will no longer be available for new entrants. Employers who currently provide childcare vouchers can continue to do so for employees who are already members and the Government will be introducing a […]
New benefit in kind exemptions & simplification
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HMRC seek consultation on salary sacrifice arrangements on reimbursed business expenses
The Government is proposing to stop tax relief advantages being claimed by workers engaged by ‘Umbrella’ companies on reimbursed business expenses that are not generally available to other workers. This will affect those workers who provide their services via employment intermediaries (umbrella companies) and who have put in place ‘salary sacrifice’ arrangements in order reduce […]
Making tax digital (MTD) for VAT
A regulation (SI 2018/261) amending the VAT regulation SI 1995/2518 has been issued providing that VAT registered businesses above the VAT registration threshold must keep electronic records and use an approved form of functionally compatible software to prepare and submit VAT returns via an application programming interface (API). It will not be possible to use […]
VAT simplification arrangements for triangulation
A recent CJEU (case C-580/16) has held that VAT simplification arrangements for transactions involving triangulation can be operated by an intermediary supplier who is registered for VAT in an EU member state, but may not yet have a permanent establishment there. The CJEU also held that the simplification procedure cannot be disapplied just because of […]
Coronavirus Job Retention Scheme Update – 4th April 2020
Following the announcement by the Chancellor recently (see here for more details), further clarification has been announced on the CJRS arrangements available to employers to help fund employment costs and reduce the need to make redundancies during these strange and unprecedented times. What was the update? The Government amended previously published guidance to help clarify certain […]
VAT repayment issues as a result of the introduction of MTD for VAT
Several of our clients have reported difficulties in receiving VAT repayments. The issues have arisen from returns submitted outside MTD for VAT, but the operation of both non-MTD VAT and MTD for VAT systems within HMRC appears to be causing some difficulties with processing of VAT repayments. VAT repayments are ordinarily due within 30 net […]
April 2020 increase in employee’s NI threshold and NMW rates
Alongside the scheduled UK changes to taxation of contractors (and the IR35 legislation), termination payments and electric cars, there are some more traditional updates to be mindful of. These concern changes to the national insurance (NI) thresholds for employees and changes to the rates for the national minimum wage (NMW) rules and the way the […]
UK immigration update – February 2020
MIGRATION ADVISORY COMMITTEE (MAC) – A POINTS BASED SYSTEM AND SALARY THRESHOLDS FOR IMMIGRATION The MAC published its report on Tuesday 28 January 2020 on the proposed changes to the Points Based System and salary thresholds. A link to the full report can be found below: https://www.gov.uk/government/publications/migration-advisory-committee-mac-report-points-based-system-and-salary-thresholds SUMMARY OF PROPOSED CHANGES The report was issued […]
Ensure digital links are in place to meet MTD for VAT deadlines
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UK Immigration Update – November 2019
BREXIT An extension to the Brexit deadline has been agreed with the EU until 31 January 2020. This extension covers a period of three months as was predicted in the prior update. As a result, the immediate possibility of leaving without a deal has been prevented until at least that point. Information with regards to […]
UK Immigration Update – October 2019 – Brexit
BREXIT As we know now, Parliament has agreed in principle the Withdrawal Agreement Bill (WAB) submitted by the current government. However, following a vote on Tuesday 22 October Parliament did not agree to the expeditious timetable put forward to enable the WAB to be passed and the UK to depart the EU on 31 October […]
UK Immigration Update – October 2019 Migration Advisory Committee – Call for evidence
DEADLINE – 5 NOVEMBER 2019 On Tuesday 25 September 2019 the Migration Advisory Committee (MAC) launched a new call for evidence in relation to minimum salary levels and the Points Based System post Brexit. This is an exciting opportunity to provide input into how the UK immigration system could work after we leave the EU. […]
Individuals working overseas may have to pay NICs in both countries after Brexit
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Brexit planning for 31 October 2019
As we approach the next Brexit deadline of 31 October 2019, it may be appropriate to review how we can assist our clients manage the tax issues around the possible changes. Below are some points on indirect and direct tax issues. Indirect tax Some high level points concerning indirect taxes and procedures for movements of […]
Summary of recent indirect tax cases – Summer 2019
highlightsThis article provides a short summary of some recent indirect tax cases. Please get in touch with a member of the Mazars indirect tax team to discuss issues arising from any of the points discussed. Employment tax and VAT on workers travel expenses and the UT decision in Pertemps The Upper Tier Tribunal (UTT) has […]
Employment tax and VAT on workers travel expenses and the UT decision in Pertemps
The Upper Tier Tribunal (UTT) has ruled that Pertemps Ltd (Pertemps) did not make a supply for VAT purposes by operating a salary sacrifice arrangement relating to travel and subsistence expenses for temporary staff through its business. Background Pertemps operated a salary sacrifice scheme for temporary workers, whereby the workers agreed to sacrifice salary for […]
Brexit – EU press release UK import and export flowcharts
On 12 June the EU issued a press release indicating its no-deal Brexit preparations were fit for purpose and that a ‘no-deal’ scenario on 1 November 2019 very much remains a possible, although undesirable, outcome. In addition the UK Government has issued two flow charts covering preparations for those importing from and exporting to the […]
VAT pension fund management services exempt from 1 April 2020
As a result of a number of CJEU decisions on the VAT treatment of investment management fees to different types of funds, HMRC issued Brief 3/2017 indicating that from 1 April 2019 VAT exemption would no longer apply automatically to management services provided by insurers, and that the definition of a special investment fund would […]
DR Loan Charge – I’m an employer what do I do?
We reported recently that the Government had rejected calls to abandon the DR Loan Charge. There have been further calls for a delay to the loan charge since this but given the comprehensive rejection by the Government to similar suggestions there remains little likelihood of this happening. The loan charge applies to all “disguised remuneration” […]
VAT in the UK/EU draft Withdrawal Agreement
The UK Government and the EU issued a joint statement on 19 June 2018 providing an update on the latest areas of agreement in the draft legal text of the Withdrawal Agreement. Since March 2018 new agreements have been reached on matters including goods on the market, Euratom related issues and judicial cooperation in civil […]
No deal Brexit – changes for UK employers sending workers to the EU, EEA or Switzerland
What is the issue? In HMRC’s latest Employer Bulletin, they issued guidance to employers on the social security contribution position for their UK employees who currently work in the EU, EEA and Switzerland in the event of a “no deal” Brexit. Under EU social security coordination regulations, currently UK employees who work in the EU, […]
Brexit – what next?
I started engaging with my clients in the UK and mainland Europe immediately after the EU referendum in June 2016, to try to help them understand the potential tax and commercial impacts of Brexit and to work out a considered action plan. In the early days of post-referendum confusion, it was relatively easy to assess […]
Government rejects all calls to abandon the DR Loan Charge
The Treasury has finally published its response as required by the Section 95 Finance Act 2019 (FA2019). Section 95 FA 2019 was an amendment to FA 2019 which required the Chancellor to review the Disguised Remuneration Loan Charge (“Loan Charge”). In its report, the Treasury has sought to justify why the Loan Charge is an […]
Increased minimum staff pension contribution requirements need not mean reduced take home pay and it may be possible to limit employer costs
The start of a new tax year and the true cost of saving for retirement – pension contributions increasing from April 2019 for many individuals in the UK In preparation for the coming mandatory pension contribution rises coming into force from April 2019, there have been some interesting articles (including https://www.bbc.co.uk/news/business-47269042), social media comments and […]
EU VAT Refund claims post 29 March 2019 may be more difficult
It is anticipated that, post 29 March 2019, UK businesses will experience significant difficulties in submitting an EU VAT refund claim under the 8th Directive procedure. Currently, an EU business that incurs VAT on certain business costs in another member state that it is not already VAT registered in, may make a claim for a […]
UK Government Grant funding for Customs procedures training for intermediaries and businesses
In 2018, the UK Government announced £2M of grant funding had been allocated to providing Customs training to intermediaries and businesses that currently trade in goods with the EU. The intention of this funding is to expand business capacity as the UK prepares to leave the EU on 29 March 2019. This will be of […]
HMRC announces interim Transitional Simplified Procedures for Customs
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Further Brexit no-deal technical notes – Accounting and Business Structuring
The Government has issued two new technical notes on what happens if there is a no-deal Brexit concerning corporate reporting and business structuring. The notes below provide a brief summary of the main points covered in these notes. For a further discussion of the tax implications of Brexit, whatever form it takes, please get in […]
Making tax digital (MTD) for VAT – HMRC guidance on what business can do to get ready
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Preparing for a Brexit no deal scenario
The Government has announced the issue of 25 technical notes discussing how various aspects of the economy might operate in the event of a Brexit no-deal scenario. Further technical notes are due in September. The announcement comments: “A scenario in which the UK leaves the EU without agreement (a ‘no deal’ scenario) remains unlikely given […]
VAT for business if there is a Brexit no-deal scenario
Included within the Government’s 25 technical notes for business on preparing for a Brexit no-deal scenario is a note discussing VAT for business if there is no Brexit deal. It reassures business that the UK will continue to have a VAT system in a Brexit no-deal scenario, but outlines some VAT changes to be aware […]
Making tax digital (MTD)
HMRC’s latest agent update includes comments on the procedures for agents signing clients up for MTD. It highlights the need to have MTD compatible software. A May 2018 HMRC webinar aimed at agents considering signing clients up to the MTD Pilot in preparation for its introduction in April 2019 can be found here (this requires […]
Salary sacrifice fails for defective implementation; dispensation no protection against past tax and NIC
The very lengthy (100+ pages) decision of the Upper Tribunal in Reed Employment v HMRC is a salutary reminder that for a successful salary sacrifice it is vital to establish the facts and pay attention to detail in implementation, and that a dispensation or clearance obtained with anything short of full disclosure of all relevant […]
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