HMRC’s Agent Update for November 2022 highlights various issues, and gives a general update on UK implementation of the OECD global tax reforms:
Pillar One: two consultations are to be released by the end of 2022, one dealing with the withdrawal digital services taxes and other similar measures relevant to Amount A, and the other dealing with Amount B. The OECD is still aiming for an H1 2023 signing ceremony for the multilateral convention to implement Amount A.
Pillar Two: the UK is yet to make a formal announcement on whether a domestic minimum tax will be introduced. A domestic minimum tax would ensure that any top-up tax due on low-taxed profits in the UK is collected by the UK, rather than by other tax authorities via their own countries. The government intends to include final legislation on the multinational top up tax in ‘Finance Bill 2022/23’ (although it is not necessarily clear at this point whether there will be an Autumn 2022 Finance Bill, or whether outstanding draft legislation will be dealt with in a single Spring 2023 Bill).
Other recent developments covered include:
New venture capital schemes online service: introduced on 27 October 2022 for companies applying for an advance assurance under the venture capital schemes.
P87 forms: HMRC is flagging planned changes to form P87 (income tax relief for employment expenses) which will require new mandatory additional information to be included.
Real time information - reporting advances of salary: HMRC will amend the relevant legislation so that salary advances can be reported on or before the employee’s contractual pay day. Currently, these payments are treated as a payment on account of earnings and employers must submit additional RTI reports to record the advance payments).
Income record viewer: HMRC’s new service is now live, and provides agents with view-only access to a client’s pay and tax details and employment history for the current and previous four tax years.
HMRC’s Agent Update for November 2022 highlights various issues, and gives a general update on UK implementation of the OECD global tax reforms:
Pillar One: two consultations are to be released by the end of 2022, one dealing with the withdrawal digital services taxes and other similar measures relevant to Amount A, and the other dealing with Amount B. The OECD is still aiming for an H1 2023 signing ceremony for the multilateral convention to implement Amount A.
Pillar Two: the UK is yet to make a formal announcement on whether a domestic minimum tax will be introduced. A domestic minimum tax would ensure that any top-up tax due on low-taxed profits in the UK is collected by the UK, rather than by other tax authorities via their own countries. The government intends to include final legislation on the multinational top up tax in ‘Finance Bill 2022/23’ (although it is not necessarily clear at this point whether there will be an Autumn 2022 Finance Bill, or whether outstanding draft legislation will be dealt with in a single Spring 2023 Bill).
Other recent developments covered include:
New venture capital schemes online service: introduced on 27 October 2022 for companies applying for an advance assurance under the venture capital schemes.
P87 forms: HMRC is flagging planned changes to form P87 (income tax relief for employment expenses) which will require new mandatory additional information to be included.
Real time information - reporting advances of salary: HMRC will amend the relevant legislation so that salary advances can be reported on or before the employee’s contractual pay day. Currently, these payments are treated as a payment on account of earnings and employers must submit additional RTI reports to record the advance payments).
Income record viewer: HMRC’s new service is now live, and provides agents with view-only access to a client’s pay and tax details and employment history for the current and previous four tax years.
