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VAT Registration – Online Only from November 2023

There are two ways to register for VAT:

– The VAT Registration Service (VRS) – online, or
– The VAT1 form – paper by post

This is set to change in November 2023 when only the online VRS route will be available.
HMRC said in their September Agent Update that already 95% of registrations are done online.
Closing the paper registration route will increase this percentage and increase the use of its digital services.

The digital exemption
route will still apply and there are some businesses that will still…

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Payrolled Benefits, Self-Assessment and Student Loans

This is another article about Self-Assessment, specifically Student Loans and applies where:

– A taxpayer has an obligation to complete a Self-Assessment return, and
– They have an outstanding Student Loan balance (or Postgraduate Loan)
– Some of the Loan repayment is calculated in the employer’s payroll but the balance is due because of information declared on the tax return and
– The employer was payrolling benefits meaning the taxpayer’s taxable income was inflated

HMRC have advised their system calculates the Student Loan due based on taxable pay. This is incorrect. Student Loan repayments are…

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Inheritance Tax Query? Contact HMRC Now

HMRC used to offer an Inheritance Tax and Probate Helpline. From 02 October 2023,
the dedicated helpline is closed. This is all part of HMRC and HM Courts and Tribunals Service (HMCTS) working together with the intention
of improving the service for probate and Inheritance Tax customers.

There are now two numbers to contact:

– For probate queries, contact HMCTS – telephone 0300 303 0648 (or E-Mail
[email protected])
– For Inheritance Tax queries, contact HMRC – telephone 0300 123 1072 (or use HMRC’s online
assistant
but NOT if an…

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Statutory Paternity Leave and Pay Changes in 2024

These affect us personally and professionally and if you have policies and procedures regarding Statutory Paternity Leave (SPL) and Pay (SPP), be aware of changes coming from the start of the 2024/25 tax year. This information is provided to help you prepare. 

The Government committed to making it easier for fathers to take leave (and pay) as follows:

– The 2 weeks can be taken in non-consecutive blocks of one week (compared to the fixed regime now)

– Instead of having to take the 2 weeks within…

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HMRC are Communicating about Self-Assessment

In October, we wrote about the Self-Assessment registration deadline (the 5th).
Hot on the heels of this, you may receive communication in the following weeks or months from HMRC about the requirement to
complete a Self-Assessment tax return. The thing that stands out from the communication is HMRC’s use of the phrase
‘You don’t need to be an expert to do your tax return’. This massively simplifies an annual process that can be very complicated
and time-consuming. That is why there are experts and…

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Register for Self-Assessment – The Deadline Approaches

The deadline for registering for Self-Assessment is 05 October 2023 (for 2022/23 tax year with tax returns due by 31 January 2024). Individuals must complete and send a tax return if, in 2022/23:

– You had self-employed income above £1,000, or

– You are a partner in a business partnership, or

– You were liable to pay the High Income Child Benefit Charge, or

– You had taxable income over £100,000

There are also other situations where you may have to complete a tax return…

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R&D Tax Relief – Additional Information Required

Research and Development (R&D) is a Corporation Tax relief that is a Government support to some UK companies working on innovative projects in science and technology. There are currently two R&D schemes:

– For large companies, Research and Development Expenditure Credit (RDEC) and

– For small or medium enterprises (SMEs), SME R&D tax relief

There are strict terms and conditions of eligibility and the Government has introduced measures to tackle what it perceives as abuse of this support package and non-compliance. At the same time, though, they…

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Advisory Fuel Rates – MUST Be Effective 01 October 2023

The Advisory Fuel Rates (AFRs) have had their quarterly review and HMRC published revised rates from 01 September 2023. With rising fuel prices again, it’s not surprising there were changes – mainly for cars with a higher cc. The following rates are effective 01 September 2023 but HMRC say the old rates can be used for one month from this date. So, from 01 October 2023 you must be using the following rates (with the old rates in brackets and * indicating where there’s been a change):

Petrol…

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Welcome IZENR (aka National Insurance Relief in Investment Zones)

An initialism that will soon fall smoothly from our tongues is IZENR, HMRC’s description of Investment Zone Employer NICs Relief. This applies in payroll systems from April 2024 and introduces 4 new category letters.

The now infamous 23 September 2023
Growth Plan
introduced us to Investment Zones in England, areas to provide ‘time-limited tax reliefs‘ and ‘planning liberalisation to support employment, investment, and home ownership‘.
The UK Government, via Kwasi Kwarteng as Chancellor of the Exchequer,said itwould work with the devolved nations on similar Zones to ensure they…

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Employer Bulletin August 2023 – an Error Corrected

On 16 August 2023, the bi-monthly Employer Bulletin
was published by HMRC.Employers and agents recognise the importance of the information contained in this and frequently register to get notification of publication. This is admirable,
as the Bulletin contained some useful information including:

– The tax relief mechanisms for pension schemes
(Relief at Source and Net Pay Arrangement), frequently confused and this article stresses the importance of correctly identifying and applying which is relevant
– Advice on the Real Time Information (RTI) processes to…

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