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Jan 19, 2024 - HMRC challenges UK VAT status of online traders

HMRC will contact businesses believed to be non-established taxable persons (NETPs) for VAT purposes. The business will then have 30 days to challenge HMRC’s decision.

HMRC will send a one-to-many letter from late January 2024 to businesses that it believes are NETPs (non-established taxable persons) for UK VAT purposes.

The businesses targeted are likely to be those using either an agent or serviced office address as their place of registration.  

In the letter, HMRC asks the business to provide evidence that it is established in the UK for VAT purposes if it disagrees that it is a NETP (non-...

Jan 18, 2024 - Immigration Health Surcharges increases with effect from 6 February 2024

As we previously reported on 09 January of this year regarding the increase of the immigration health surcharge, the Immigration (Health Charge) (Amendment) Order 2024 passed into law on 16 January 2024.

The new rates will apply to applications made on or after 6 February 2024, which is 21 days after the order became law.

The ‘normal’ surcharge will increase from £624 per year to £1,035 per year of the visa being applied for.

The lower rate surcharge (for such visas as Student, Student dependant, Youth Mobility Scheme and children aged under 18 on the date of application) will rise from £470 p...

Jan 16, 2024 - Payrolling employer-provided benefits to be mandated from 2026

HMRC has announced that payrolling benefits and paying class 1A NIC on BIK via payroll will be mandatory from April 2026. The aim is to reduce administrative burdens by simplifying and digitising reporting and paying tax on all employment benefits, removing the need for four million P11D returns and forms P11D(b). 

While ICAEW previously recommended making it possible to payroll beneficial loans and employer-provided accommodation, it has also highlighted complexities involved in payrolling BIK.  

For example, although payrolling BIK removes the need for employers to submit forms P11D for thes...

Jan 09, 2024 - 66% increase in Immigration Health Surcharge to be implemented no earlier than 31 January

The House of Commons delegated legislation committee will debate the surcharge increase this Wednesday.

We would like to remind that the draft order was published in October 2023 and stated that it will come into force either on the 16th January 2024 or the twenty-first day after the day on which it is made depending on which date was the later.

A delegated legislation committee of the House of Commons will be debating the draft order on Wednesday, 10 January at 4.30pm. This would mean that 31 January is now the earliest day that the increase can take effect.

The surcharge will be increased fr...

Jan 01, 2024 - New immigration restrictions on overseas students bringing family to UK come into force today

A key element of Rishi Sunak's plan to reduce legal migration to the UK comes into effect today - but he still faces fights with his backbenches to reduce both legal and illegal migration ahead of a general election expected this year.

Under the new rules, any international students starting courses from this month will not be able to bring dependants to the UK, unless they are on postgraduate research courses or courses with government-funded scholarships.

The changes were first announced last May as part of the government's bid "to prevent misuse of the visa system".

Ministers say it will se...

Dec 28, 2023 - New budget to be delivered on 6 March 2024, confirms Treasury

Chancellor Jeremy Hunt will deliver the 2024 spring Budget on 6 March, the Treasury has said.

It will include the government's tax and spending plans as well as new growth and borrowing forecasts.

It could be the last chance for the government to announce significant changes to tax policy before the general election.

Reports suggest there may be further tax cuts as the Conservatives try to close a major deficit in the polls.

The chancellor used his last big fiscal speech, the Autumn Statement, to extend tax breaks for business and cut National Insurance.

However, those policy decisions did not...

Dec 28, 2023 - British-born man who has never left UK faces deportation

A 28-year-old British-born man who has never left the country has spoken of his devastation after being told he will be deported to Portugal, from where his parents arrived more than 30 years ago, under a post-Brexit policy towards EU nationals convicted of crimes.

Dmitry Lima was born in Lambeth, in south London, does not speak Portuguese and has never travelled abroad but he was given a deportation order by the Home Office after serving a prison sentence for drugs offences and for carrying a Taser.

Lima, who had no previous convictions, is appealing against the deportation decision on the gr...

Dec 22, 2023 - New £38,700 income visa rule will be introduced in early 2025, confirms Rishi Sunak

The rise from the current £18,600 level was announced earlier this month and had been scheduled for the spring.

However, the government has rowed back and now says the increase will come in two stages.

Next spring, the threshold will rise to £29,000, with the further rise not applying until the following year.

Speaking in Lincoln, Mr Sunak defended the timetable, saying: "The principle here is absolutely right that if people are bringing dependents into this country as part of their family, they must be able to support them.

"We're doing exactly as we said we would. We're just doing it in two ...

Dec 22, 2023 - Deprivation of British citizenship without advance notice is lawful, concludes Upper Tribunal

The Upper Tribunal has held that it is lawful for the Home Secretary to deprive a person of their British citizenship without notice, in this case because of a concern that the second nationality would be renounced. Renunciation would have meant that deprivation of British citizenship would be at risk of being held unlawful as it would have left the appellant stateless. The case is Kolicaj (Deprivation: procedure and discretion) Albania UKUT 294 (IAC). The appellant was notified that he had been deprived of his citizenship on the same day that he had been notified that it was under review due ...

Dec 22, 2023 - Changes to National insurance contributions for employees and self-employed persons for 2024

There will be a cut in the main rate of Employee’s National Insurance contributions from 6 January 2024. This will see Class 1 National insurance contributions reduced by 2%, from 12% to 10%, in a change set to benefit some 27 million employees.

This reduction will only apply to annual earnings between £12,570 and £50,270, meaning that the maximum saving is £754 a year. Average earners, bringing home £35,400, will be £450 better off. As the main rate will be reduced from 6 January 2024, employees will, unusually, see a benefit before the start of the next tax year.

How are these reductions in ...

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