Indirect tax news from the past week
17/03/2025
Exchequer Secretary speech on modernisation of the tax system
On 11 March 2025, Exchequer Secretary to the Treasury, James Murray MP, delivered a speech to a Chartered Institute of Taxation (CIOT)/Institute of Chartered Accountants in England and Wales (ICAEW) event marking the twentieth anniversary of the establishment of HMRC. Mr Murray focussed on the government’s commitment to modernising HMRC and the UK’s tax and customs system, with HMRC becoming a ‘digital-first organisation’. From an indirect tax perspective, key issues included electronic invoicing and the simplification of customs processes. A technical pilot with United States Customs and Border Protection was announced, to test digital solutions to “speed up processes for US and UK businesses trading goods with each other”. The pilot will look to use real time data, such as digital certificates and online identifiers, with a view to making processes faster and more efficient. Mr Murray also announced that simplifications and improvements would be made to the customs Temporary Admission procedure, to extend and simplify time limits, remove some restrictions on who can use the procedure, and improve HMRC’s guidance. A press release accompanying the speech refers in particular to providing relief for fine art and antiques, including increasing the time limit for fine art and antiques to remain in the UK from two to four years. (A consultation on the Temporary Admission procedure was held under the previous government.) Other matters covered in Mr Murray’s speech were based on the themes of improving HMRC service, simplifying tax administration, and measures to close the tax gap, including tackling phoenixism, a reward scheme for informants, and additional HMRC compliance and debt collection officers. (Contact: Andrew Clarke)
VAT in the Digital Age package adopted
The EU’s Economic and Financial Affairs Council (ECOFIN) has formally adopted the VAT in the Digital Age (ViDA) package, following the agreement reached in November 2024. The package includes a directive, a regulation and an implementing regulation, which will all enter into force on the twentieth day following their publication in the Official Journal of the EU. The regulations are directly applicable, and the directive will have to be transposed into national law by EU member states. The ViDA package includes three pillars: digital reporting requirements, the platform economy and single VAT registration. The measures included in the package will be implemented in stages, with application dates ranging from 2025 to 2035. For more information on the package, including the background and the pillars, see tax@hand. (Contact: Cameron Murgatroyd)
Finance Bill update
The remaining Commons stages of Finance Bill 2024-25 took place on 3 March 2025. The Bill has now moved to the House of Lords where it had its First Reading on 4 March 2025. The Lords’ version of the Finance Bill, reflecting all amendments made during the Bill’s passage through the House of Commons, has been published. This will effectively be the text of Finance Act 2025, as the Lords cannot change the Bill. Remaining Lords stages are scheduled for 19 March 2025, after which the Bill will be sent for Royal Assent. (Contact: Donna Huggard)
VAT case calendar
On 19 March, the Supreme Court will hear the taxpayer’s appeal against the Court of Appeal judgment in The Prudential Assurance Company Limited on VAT groups and continuous supplies.
Dbriefs webcast
On Thursday 20 March at 12.00, there will be a webcast on Taking Action On Tax Evasion: Corporate Criminal Offence and the Failure to Prevent Fraud. Our panel, including speakers from HMRC, will discuss the latest position on CCO investigations, HMRC’s expectations of businesses, and the Economic Crime and Corporate Transparency Act 2023, including its interaction with CCO.