As the 31 October 2023 deadline for submitting a paper tax return for the 2022-23 tax year approaches, HMRC have relented on a previous policy and advised that they will accept a properly completed, downloaded copy of the reference Self Assessment tax return available from GOV.UK.
SME Tax News
HMRC have issued 'Tax-free savings newsletter 9 - October 2023' which primarily clarifies their view that fractional shares cannot be held in ISAs. This means that taxpayers who hold investments in this way may have to sell their holdings and pay tax on any resulting gains.
HMRC have published their Employer Bulletin for October 2023. We have summarised the key content for you, with links to our detailed guidance on the topics covered.
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We have a diverse collection of cases and guides this week. Some of the cases warrant a close read.
In HMRC v Gerald and Sarah Lee [2023] UKUT 242, the Upper Tribunal (UT) found that Private Residence Relief applied to the entire gain on a main residence built on the site of a previously demolished property. The dwelling house existed for a quarter of the time that the land had been owned, but the period of ownership test related to the house only.
Following the 2015 changes to public sector pensions, from 1 October 2023, certain younger members of public service pension schemes can use the McCloud remedy to benefit from the same annual and lifetime allowance protections as older retiring scheme members.
HMRC have updated their Employment Income Manual to reflect a change in policy. This impacts employers who reimburse employees for the cost of electricity used to charge company cars and vans at home. A Benefit In Kind no longer arises on reimbursement.
The Institute for Fiscal Studies (IFS) has published, 'Full expensing and the corporation tax base'. The report discusses the new temporary full-expensing policy and whether it should be made a permanent part of the corporate tax base, concluding that if ends up being temporary it will have little or no long-run effect on the UK’s capital stock.
HMRC's Check Employment Status for Tax (CEST) tool has moved to a new platform. It improves the user experience of the tool, giving more flexibility and a better understanding of the outcome.
HMRC have issued the latest round of One-to-Many letters. It is aimed at tax agents submitting multiple P11D and P14 claims for clients where there may be a subsequent discrepancy on their 2021-22 Self Assessment Tax Return in relation to the High Income Child Benefit Charge (HICBC).