01/12/2023
Autumn Finance Bill
The text of Autumn Finance Bill 2023 was published on 29 November 2023, alongside Explanatory Notes and a press release from HM Treasury. The Bill’s dedicated pages on Parliament’s website are here.
The Bill had its First Reading in the Commons on 27 November 2023 following the conclusion of MPs’ debate on the Autumn Statement and their approval of Ways and Means Resolutions. No date has been set yet for the Bill’s Second Reading.
Included in the Bill is clause 27, setting out the provisions regarding the interpretation of VAT and excise law in light of the Retained EU Law (Revocation and Reform) Act 2023. By way of a resolution approved by MPs in accordance with the Provisional Collection of Taxes Act 1968, the provisions of clause 27 will have statutory effect, and will come into force on 1 January 2024.
Four other Autumn Finance Bill resolutions also have statutory effect through the Provisional Collection of Taxes Act 1968 mechanism or similar, including resolution 1 on changes to tobacco duty rates, and resolutions 19 to 21 on changes to stamp duty and stamp duty reserve tax rules on capital-raising arrangements and the growth market exemption.
National Insurance Contributions (Reduction in Rates) Bill
The National Insurance Contributions (Reduction in Rates) Bill to separately enact a number of the Autumn Statement’s NIC rate change announcements was published last week, alongside its explanatory notes. The Government has asked Parliament to expedite the progress of the Bill in order to give time for employers to implement changes to payroll software ahead of the Class 1 rate reduction from 6 January 2024, and the Bill completed all of its remaining Commons stages yesterday (30 November 2023). No amendments were made. The Bill now moves to the House of Lords where remaining Lords stages are provisionally scheduled for 12 December 2023.
Company car advisory fuel rates from 1 December 2023
HMRC have announced the new advisory fuel rates for company cars applicable from today (1 December 2023). The previous mileage rates, effective from 1 September 2023, can be used for up to one month from the date the new rates apply. Compared to the previous rates, the advisory fuel rates for diesel have each increased by 1p. The advisory fuel rates for petrol engines sized 1041 to 2000cc are unchanged, but petrol rates for smaller and larger engines have increased by 1p. Rates for liquefied petroleum gas (LPG) are reduced by 1p engines over 2000cc and unchanged for smaller engine sizes. The advisory rate for fully electric cars has decreased by 1p to 9p per mile.
OECD publishes report on greenhouse gas emission pricing
The OECD has published the latest edition of its annual report – Effective Carbon Rates 2023: Pricing Greenhouse Gas Emissions through Taxes and Emissions Trading. The report looks at the state of carbon pricing, encompassing fuel excise taxes, carbon taxes and emissions trading systems. The analysis covers 72 countries, collectively emitting approximately 80% of global greenhouse gas (GHG) emissions in 2021. The OECD notes that nearly 60% of the approximately 40 billion tonnes of GHG emissions were unpriced in the covered in the report, down from about 70% of unpriced GHG emissions in 2018, but with significant variation of coverage, prices and pricing instruments across sectors and countries. In its country summary for the United Kingdom, the OECD states that the UK “priced about 74% of its carbon emissions from energy use and about 59% were priced at an [effective carbon rate] above EUR 60 per tonne of CO2”.
EU Central Electronic System of Payment information
From 1 January 2024, new reporting obligations will take effect for European Union financial institutions, requiring the disclosure of cross-border payment data – known as Central Electronic System of Payment information (CESOP). CESOP is intended to address the VAT gap and fraud in e-commerce. The rules will impact EU payment service providers (PSPs), including banks, card issuers and acquirers, e-money providers and online platforms that have their own in-house regulated PSPs. The first CESOP filings are due by 30 April 2024 at the latest. The European Commission has recently published updated guidance on the CESOP requirements, including guidelines for the reporting of payment data and frequently asked questions.
EMEA Dbriefs webcast
The next EMEA Dbriefs Tax and Legal webcast is on Wednesday 6 December 2023 at 13.00 GMT/14.00 CET. In Upcoming Changes To Holiday Entitlement And Holiday Pay, hosted by Kathryn Dooks, specialists from Deloitte’s Fair Pay team will be discussing the Government’s recent response to two holiday pay consultations which includes proposed changes to the law on holiday pay and entitlement anticipated to come into effect from January 2024. They will discuss the potential impact these announcements may have on employers across the UK, and what the future holiday pay compliance landscape could look like.