Hello,
It has been a week of economic turmoil following last Friday’s mini-budget. We have summaries of the key measures announced in case you missed our Budget Special edition, as well as plenty of non-budget content including a new Employer update for 2022-23, HMRC’s latest Agent update and some interesting tax cases.
How does the mini-budget affect Wales and Scotland? What are the devolved nation’s responses to it?
HMRC has issued a policy paper ‘Information for customers of Tax Credits Ltd - refunding tax reclaims’ confirming that many taxpayers who made tax repayment claims through the repayment agent Tax Credits Ltd will now receive their refunds directly from HMRC.
The deadline for registering for Self Assessment is 5 October after the end of the tax year; anyone who needs to register for 2021-22 now has less than a week left or they will face penalties.
In HMRC v Aozora GMAC Investment Limited [2022] UKUT258, the Upper Tribunal (UT) agreed that unilateral double tax credit relief was available for US source interest under the UK/US tax treaty. The terms of the treaty did not expressly preclude relief so UK domestic law could not operate to prevent it either.
HMRC have issued their Agent Update for September 2022. We have summarised the key content for you with links to our detailed guidance on the topics covered.
Following the Bank of England’s announcement on 22 September 2022 that the base rate would rise to 2.25%, HMRC interest rates will also increase by 0.50%, to 4.75% for late payment interest and 1.25% for repayment interest, from 11 October 2022.
The Chancellor, Kwasi Kwarteng, has presented his mini-budget and 'The Growth Plan 2022' announcing major reversals to a large chunk of his predecessor's tax policies. Together with a package of tax cuts, these would have greatly benefit owner-managed businesses but almost all were reversed on 17 October 2022.
In his mini-budget on 23 September 2022, Chancellor Kwasi Kwarteng announced that the limits on the value of options that can be granted under Company Share Option Plans (CSOP) are to be increased.
In his mini-budget on 23 September 2022, Chancellor Kwasi Kwarteng announced plans to introduce a new digital, VAT-free shopping scheme for non-resident visitors. [This was reversed on 17 October 2022 by the new Chancellor Jeremy Hunt.]