Weekly VAT News

King’s speech

As part of the State Opening of Parliament, the King’s Speech was delivered on 17 July 2024, setting out the new government’s legislative agenda for the first session of the new Parliament. Tax policy announcements are typically reserved for Budget statements and so taxation did not feature heavily in the speech. It did however refer to the government’s intentions to bring forward measures to remove the exemption from VAT for private school fees and reform the apprenticeship levy. The speech set out 35 new bills and 5 draft bills to be taken forward in this session, with further details included in background briefing notes. The bills include a Budget Responsibility Bill, 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 for Budget Responsibility (OBR). The text of the Bill was published on 18 July 2024, and it is due to have its Second Reading on 30 July 2024. (Contact: Andrew Clarke)

Changes to VAT registration details – Form VAT484

There have been recent reports of attempts by fraudsters to use form VAT484 (changes to VAT registration details) to change a business’s bank account details on HMRC’s systems to access the business’s VAT repayments. HMRC had taken some steps to address this issue, including writing to businesses to confirm changes made to their details. HMRC have now advised that, from 5 August 2024, any request to change VAT registration details should be made using the VAT online account, and not by using form VAT484 or other postal or electronic means. Businesses unable to use digital services will be able to contact HMRC to request a VAT484 form. HMRC will be updating their guidance to reflect this change at Change your VAT registration details. (Contact: Rob Holland)

VAT Registration Estimator

HMRC have launched the VAT Registration Estimator, a digital tool to help small businesses estimate what registering for VAT may mean for them. The tool has been developed “after feedback from small businesses suggested an online tool would be helpful to show when their turnover could require businesses to register for VAT and its effect on profits”. The estimator also links to information about the VAT registration process. It can also be used by businesses operating below the VAT registration threshold and considering voluntary registration. (Contact: Donna Huggard)

Draft Alcoholic Products (Excise Duty) (Amendment) Regulations 2024 – Consultation outcome

HMRC have advised that changes will be made to the draft Alcoholic Products (Excise Duty) (Amendment) Regulations 2024 as a result of feedback to the technical consultation on the draft regulations. Following the introduction of a new alcohol duty system on 1 August 2023, the draft regulations relate to administrative details, in particular approvals, returns, and payments. They will provide for a single digital approval process and digital returns to harmonise alcohol duty authorisations and accounting processes. As part of the harmonisation, the regulations will standardise alcohol duty return periods, and filing and payment dates. (Contact: Eleanor Caine)

Deloitte Global Tax Policy Survey

Deloitte has surveyed more than 1,000 tax and finance executives for the 2024 Global Tax Policy Survey, to understand the impact that five key themes, namely transparency and reporting, digitalisation, international tax reform, the future of work, and climate change and sustainability, are having on shaping the global tax landscape, and their ranking in the eyes of industry leaders. Of particular interest from an indirect tax perspective, digitalisation of tax was ranked as the second most significant theme. Most respondents reported progress towards Tax Administration 3.0 (a digitalised model) in their countries, with many respondents expecting benefits, while others are wary of increased cost and complexity. A majority of respondents (59%) see the potential of e-invoicing (and digital reporting for trade/customs) for simplifying compliance, even with the need for investment. However, 10% remain to be convinced and believe the effect will actually be the opposite. There is a high level of support for the EU’s VAT in the Digital Age (ViDA) proposal, with 75% of respondents supporting the development of a uniform approach to e-invoicing and e-reporting across the EU. (Contact: Giuseppe Ciampa)