HMRC has published the draft Social Contributions (Limited Liability Partnership) Regulations 2014. These regulations mirror the provisions in ITTOIA 2005 and ITEPA 2003, which treat salaried members of LLPs as employees and provide that they are also to be treated as employed earners (subject to class 1 and class 1A NIC) for the purposes of the Social Contributions and Benefits Act 1992. The regulations will have retrospective effect from 5 April 2014.
EU Savings Directive: returns
In Business Brief 16/2014, HMRC has warned that it will consider levying penalties on those financial institutions which continue to make incorrect returns of interest payments. The brief suggests that financial institutions should have procedures in place correctly separating interest payments made to customers with addresses in the UK (and fully reportable countries) from those with addresses in the EU (and other prescribed territories). The brief warns that deliberate as well as careless inaccuracies could lead to penalties in the future.
UK’s ‘party plan’ derogation
Revenue & Customs Brief 19/2014 explains that HMRC will not oppose the First-tier Tribunal’s reference to the CJEU of questions raised in Avon Cosmetics Ltd v HMRC [2014] UKFTT 172 (TC), regarding inconsistencies created by the UK’s derogation from the VAT Sixth Directive in relation to the treatment of discounts on traders’ sales to their non-VAT registered representatives. Pending the CJEU’s judgment, HMRC’s position remains that non-VAT registered representatives cannot deduct input tax on samples and demonstration items.
Preferential tariff treatment
The European Commission has updated its guide on how to interpret and implement the rules of origin that determine whether or not goods produced in the beneficiary countries are eligible for preferential tariff treatment under the EU’s scheme of generalised system of preferences (GSP) for developing countries.
HMRC guidance
New HMRC guidance is available from HMRC’s website, including:
PAYE for employers: making a final 2013 to 2014 PAYE submission after 19 April 2014;
a list of authorised ISA managers;
HMRC opened a new enforcement and compliance debt management and banking (DMB) agent dedicated line on 28 April 2014. This will only be for agents with queries about DMB, who will get a priority service;
exempt unauthorised unit trusts: new application forms and new annual report forms;
revised Notice 708: Buildings and construction: principal changes relate to the change in policy on student accommodation and the provision of a more detailed definition of what is meant by the term ‘student’;
revised Notice 179E on biofuels and other substitutes: gives details of the various biofuels and their excise duty rates. It also explains the roles and responsibilities of producers (and in some cases, users) of these products;
revised Notices 226 and 162 on beer duty and cider production;
Customs Information Papers on the export control system and new computerised transit system upgrade; the tariff preference autonomous trade measures in Ukraine; inward processing; and new contact details for the C18 team and the national clearance hub;
completing paper SDLT1 returns following the switch off of SDLT in Scotland;
Trusts & estates newsletter (April edition), which has articles on: trust assets subject to the UK/Swiss tax agreement; 2013/14 trust and estate return changes; new forms IHT205, IHT217 and IHT206; excepted estates; and reporting minor IHT400 amendments from 1 May 2014; and
guidance which supplements HMRC’s existing guidance in Abolition of stamp duty and stamp duty reserve tax: securities admitted to trading on recognised growth markets, which was published on 17 March 2014. The new guidance includes a list of recognised growth markets.
HMRC has published the draft Social Contributions (Limited Liability Partnership) Regulations 2014. These regulations mirror the provisions in ITTOIA 2005 and ITEPA 2003, which treat salaried members of LLPs as employees and provide that they are also to be treated as employed earners (subject to class 1 and class 1A NIC) for the purposes of the Social Contributions and Benefits Act 1992. The regulations will have retrospective effect from 5 April 2014.
EU Savings Directive: returns
In Business Brief 16/2014, HMRC has warned that it will consider levying penalties on those financial institutions which continue to make incorrect returns of interest payments. The brief suggests that financial institutions should have procedures in place correctly separating interest payments made to customers with addresses in the UK (and fully reportable countries) from those with addresses in the EU (and other prescribed territories). The brief warns that deliberate as well as careless inaccuracies could lead to penalties in the future.
UK’s ‘party plan’ derogation
Revenue & Customs Brief 19/2014 explains that HMRC will not oppose the First-tier Tribunal’s reference to the CJEU of questions raised in Avon Cosmetics Ltd v HMRC [2014] UKFTT 172 (TC), regarding inconsistencies created by the UK’s derogation from the VAT Sixth Directive in relation to the treatment of discounts on traders’ sales to their non-VAT registered representatives. Pending the CJEU’s judgment, HMRC’s position remains that non-VAT registered representatives cannot deduct input tax on samples and demonstration items.
Preferential tariff treatment
The European Commission has updated its guide on how to interpret and implement the rules of origin that determine whether or not goods produced in the beneficiary countries are eligible for preferential tariff treatment under the EU’s scheme of generalised system of preferences (GSP) for developing countries.
HMRC guidance
New HMRC guidance is available from HMRC’s website, including:
PAYE for employers: making a final 2013 to 2014 PAYE submission after 19 April 2014;
a list of authorised ISA managers;
HMRC opened a new enforcement and compliance debt management and banking (DMB) agent dedicated line on 28 April 2014. This will only be for agents with queries about DMB, who will get a priority service;
exempt unauthorised unit trusts: new application forms and new annual report forms;
revised Notice 708: Buildings and construction: principal changes relate to the change in policy on student accommodation and the provision of a more detailed definition of what is meant by the term ‘student’;
revised Notice 179E on biofuels and other substitutes: gives details of the various biofuels and their excise duty rates. It also explains the roles and responsibilities of producers (and in some cases, users) of these products;
revised Notices 226 and 162 on beer duty and cider production;
Customs Information Papers on the export control system and new computerised transit system upgrade; the tariff preference autonomous trade measures in Ukraine; inward processing; and new contact details for the C18 team and the national clearance hub;
completing paper SDLT1 returns following the switch off of SDLT in Scotland;
Trusts & estates newsletter (April edition), which has articles on: trust assets subject to the UK/Swiss tax agreement; 2013/14 trust and estate return changes; new forms IHT205, IHT217 and IHT206; excepted estates; and reporting minor IHT400 amendments from 1 May 2014; and
guidance which supplements HMRC’s existing guidance in Abolition of stamp duty and stamp duty reserve tax: securities admitted to trading on recognised growth markets, which was published on 17 March 2014. The new guidance includes a list of recognised growth markets.
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