Weekly VAT News

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. (Contact: Kate Ramm)

Interest rate changes – HMRC

On 1 August 2024, the Bank of England’s Monetary Policy Committee announced a reduction 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 reduction to interest rates for late tax payments and tax repayments as a result. According to HMRC, the changes will generally come into effect on 20 August 2024. (Contact: Rob Holland)

HMRC annual report and accounts

On 30 July 2024, HMRC published their annual report and accounts 2023 to 2024. In reviewing HMRC’s performance, the report states that total tax revenues were £843.4 billion, and that HMRC exceeded their £40.5 billion target for ‘compliance yield’ for 2023/24 – collecting or protecting £41.8 billion of tax revenue “which would otherwise have been lost through error, fraud and other forms of non-compliance”. The report also acknowledges “serious challenges in delivering [our] customer services”, and HMRC have published the HMRC Charter annual report 2023 to 2024 assessing their performance and how they are working to meet the Charter standards. HMRC also published a number of supplementary technical notes with the annual report, including a large business compliance: technical note, which looks at the results of HMRC’s Large Business Directorate in 2023/24. This note breaks down key compliance yield and ‘tax under consideration’ statistics for large business taxpayers between different taxes and duties, areas of inaccuracy, countries of groups’ ultimate parents, and industry sectors. (Contact: Andrew Clarke)

Leeds VAT Agenda Day –19 September 2024

As a reminder, the North East and Yorkshire VAT Agenda Day is to be held in Leeds on 19 September 2024 at the Royal Armouries, where Deloitte’s North East indirect tax team will be discussing the latest indirect tax hot topics through plenary and interactive breakout sessions. For more information, and to register, see The VAT Agenda.

Manchester VAT Agenda Day – 3 October 2024

Join our North West indirect tax team in their brand new state of the art office at 100 Embankment, Manchester on 3 October 2024. The team will be addressing the current challenges and opportunities across various industries, considering from a practical perspective the most critical current issues, trends, and future developments within indirect tax. This event presents an excellent opportunity for you to engage with fellow professionals, reconnect with past attendees, and establish new connections. For more information, see North West : The Indirect Tax Agenda Day, or contact Huw Salmon or your usual Deloitte indirect tax contact.

Weekly VAT News will now be taking a summer break for a few weeks – the next issue will be published on 2 September 2024.