HMRC has recently issued a series of generic ‘nudge’ letters to companies that make cross-border royalty payments and that are members of non-UK headquartered groups. These set out some of the common errors found in the calculation of royalty payments for tax purposes, including applying royalty rates that are different to the rate shown on a royalty agreement and calculating royalties using management accounting information instead of year-end financial statements. The letters invite those companies to correct any errors concerning these royalty payments.
HMRC has recently issued a series of generic ‘nudge’ letters to companies that make cross-border royalty payments and that are members of non-UK headquartered groups. These set out some of the common errors found in the calculation of royalty payments for tax purposes, including applying royalty rates that are different to the rate shown on a royalty agreement and calculating royalties using management accounting information instead of year-end financial statements. The letters invite those companies to correct any errors concerning these royalty payments.
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