9 August 2024
Digital platform reporting rules – HMRC guidance
With effect from 1 January 2024, the UK implemented the Organisation for Economic Development (OECD) reporting rules for digital platform operators in the UK. The rules require in-scope UK digital platforms to collect information, and report to HMRC annually, on the income of sellers (in the UK and partner jurisdictions) using their platforms to provide personal services, sell tangible goods, and rent out immoveable property or transport, with the first reporting of data in January 2025. HMRC’s guidance on the reporting rules for digital platforms provides that the annual reports will need to be made using HMRC’s digital platform reporting service, which is not yet available. The guidance sets out what qualifies as a platform, who needs to report, and who they need to report on, as well as the information to be collected, verified, and reported. More detailed information is available in the HMRC Manual. HMRC have also issued guidance on selling goods or services on a digital platform, which sets out why sellers on platforms may be asked for information, and what information they must provide. It also includes some guidance on sellers’ potential tax obligations.
Budget Responsibility Bill – Second Reading
The Budget Responsibility Bill was given its Second Reading in the House of Commons on 30 July 2024, before the House rose for the summer recess. The Bill is intended to ensure that all ‘fiscally significant’ permanent tax or spending change announcements made by the government will be subject to an independent assessment by the Office of Budget Responsibility (OBR). The Committee of the whole House and remaining stages of the Bill are scheduled to take place on 4 September 2024.
UK and Ecuador sign new double tax treaty
The governments of the UK and Ecuador signed a new double taxation convention and protocol on 6 August 2024. This will be the first comprehensive double tax treaty between the UK and Ecuador. The treaty will need to be ratified domestically by both countries, followed by notifications through diplomatic channels, after which it will enter into force in accordance with the timings set out in Article 29.
Changes to HMRC interest rates following Bank of England rate change
On 1 August, the Bank of England’s Monetary Policy Committee announced a decrease in the Bank Rate by 0.25 percentage points from 5.25% to 5%. HMRC have now updated their interest rate tables to reflect the automatic 0.25 point decrease to interest rates for late tax payments and tax repayments as a result. The new rates take effect from 12 August 2024 for quarterly instalment payments of corporation tax, and from 20 August 2024 for most other tax payments.
EMEA Dbriefs webcasts
The EMEA Dbriefs programme is taking a break over the summer. Why not take this time to catch up on demand on some of our more recent webcasts that you may have missed. These include: Mandatory payrolling all benefits in kind – the end of P11Ds; US 2024 Election forecast – What to expect?; Update on latest OECD developments: Pillar One and Pillar Two; Worker rights – What next following the general election? and Navigating the global talent landscape – the payroll perspective. You can also subscribe here to hear about our upcoming webcasts in the autumn.