HMRC has raised interest rates
HMRC has increased the current late payment interest rate applied to the main taxes and duties to 3% from 2.75% with effect from 21 February 2022.
The 3% rate applies to late payments for:
- income tax
- National Insurance contributions
- capital gains tax
- stamp duty, SDLT and stamp duty reserve tax.
Making Tax Digital for Income tax (MTD ITSA)
A survey, conducted by accounting software firm FreeAgent has highlighted ongoing confusion around (MTD). 82% of respondents said they are unaware of the upcoming 2024 deadline for MTD (ITSA), which will require self-employed people, sole traders and landlords that have income over £10,000, to use digital software to manage their finances and file their tax returns.
HMRC and promoters of tax avoidance
HMRC will be able to release much more detailed information about avoidance schemes, including:
- details of tax avoidance schemes where HMRC has a suspicion that a scheme is being sold through a website or other channel;
- actions HMRC are taking under the disclosure of tax avoidance schemes (DOTAS) rules, including, where relevant, whether HMRC believes that the scheme is disclosable under DOTAS;
- confirmation that similar schemes have been found not to produce the tax benefits claimed;
- where a promoter of a scheme has suggested that their schemes always work, details of other schemes they have promoted that have been defeated;
- details of where a promoter had been successfully challenged under the promoters of tax avoidance schemes (POTAS) rules, the enablers penalty regime, or DOTAS; and
- details of a promoter’s previous defeats under different names, or organisational structures, where they claimed to be a new promoter or fail to draw attention to their previous failure.