29 Nov 2013 05:39pm

Weekly tax update

Our look at the technical updates and notices in the tax world this week

Autumn Statement

The Chancellor of the Exchequer will give his Autumn Statement at 11.15am on Thursday, 5 December.

The following week, on 10 December, the draft clauses which will appear in Finance Bill 2014 will be published. The deadline for comment is 4 February 2014.

Paperless self-assessment

HMRC is consulting on its plans for paperless self-assessment tax returns.

Under the proposed new system, taxpayers would receive communications from HMRC electronically, rather than by letter. But legislation is necessary before HMRC can introduce the new system, so it is seeking views on the proposed legislative changes.

The deadline for responses is 27 December 2013. These should be sent to

Manufactured overseas dividends

New rules for manufactured overseas dividends come into operation from 1 January 2014.

These simplify the regime for such dividends by getting rid of the requirement to deduct tax from manufactured overseas dividends.

They were introduced in the 2013 Finance Act following consultation.

New advisory fuel rates

From 1 December 2013, new advisory fuel rates for company cars will apply.


They are as follows:

Engine size                                         Petrol                        LPG

1400cc or smaller                               14p                         9p

1401cc to 2000cc                               16p                         11p

Bigger than 2000cc                             24p                         16p


Engine size                                       Diesel

1600cc or smaller                             12p

1601cc to 2000cc                               14p

Bigger than 2000cc                            17p

Non-QROPS transfers

HMRC has published guidance for individuals, pension schemes and advisers on the taxation of unauthorised transfers to schemes included on the list of qualifying recognised overseas pension schemes (QROPS).

The guidance is related to the case of R (Gibson) v Commissioner for HM Revenue and Customs and concerns transfers of sums or assets which took place before 24 September 2008 from a registered pension scheme to a scheme that was included within the list. It only applies to a small number of transfers where the scheme was not a QROPS when the transfer took place.

VAT quarterly briefing

HMRC has published its latest quarterly VAT newsletter. As well as a list of updated VAT notices, it contains a reminder about changing representatives and the need for a new authorisation to be lodged with HMRC. There is also a note about the introduction of a new online service called VAT Mini One Stop Chop: this means that suppliers of broadcasting, telecommunications and e-services (BTE) will not have to register in every European Union state in which they have a customer.



National heritage guide updated

The guide to capital taxation and the national heritage now includes a new section in appendix A. This provides guidance on chattels that qualify for conditional exemption and support by a maintenance fund.

It also contains changes to the circumstances when interest is charged on objects that are exempted from estate duty which are sold at auction (para 4, appendix 3).

Climate Change levy

HMRC has updated its notice CCL 1/5, on the financial penalties and interest that taxpayers may incur in respect of the Climate Change Levy.

The new notice, which replaces the November 2011 version, has been amended to reflect the introduction of carbon price support rates of the levy and changes to the security payments guidance.

Updated Customs notice

The technical content of Notice 100, Customs Flexible Accounting System, now covers the introduction of faster payments and the change to the Salford accounting centre office address.

More tax news and analysis from this week

Tax avoidance top of public concerns over business

Worries about corporate tax payments has replaced remuneration as the top public concern about business behaviour


Bermuda opts for tax transparency

Bermuda has formally signed an automatic exchange of tax information agreement with the UK


KPMG hires six UK tax directors

KPMG has hired six new directors for its UK tax and pensions practice


EC closes double taxation loophole

The European Commission has proposed amendments to close corporate tax avoidance loopholes


Avoidance schemes at all time low

The number of tax avoidance schemes disclosed to HMRC has fallen to an all-time low


Julia Irvine