Tag: Treasury

The press release issued by HM Treasury on 11 April 2023.

The Chancellor has today announced that he has appointed Megan Greene as an external member of the MPC of the Bank of England.

The press release issued by HM Treasury on 6 April 2023.

Lighthouse International Group Holdings Trading LLP has been wound-up in the public interest by the High Court following an Insolvency Service investigation.

Lighthouse was incorporated in 2012, and purported to offer life coaching services as well as mentoring, career and business development services. It promised on its website that customers subscribing to its products and services would be able to “optimise results in your life, in direct proportion to your investment of time, money and effort”.

Customers who subscribed to the service paid substantial sums as identified from analysis of Lighthouse’s bank accounts. Between August 2014 and July 2022 Lighthouse received over £2.4m in income from customers. From this income at least half was paid over to Paul Waugh, a Lighthouse member over a four-year period, and smaller amounts were paid to other members.

The court found that Lighthouse failed to deliver up its trading and financial records, as required by law, during the Insolvency Service investigation. Therefore, the investigators were unable to fully determine the exact nature of its business activities or verify Lighthouse’s account provided in proceedings that it had operated as a “research community” that had never launched its work as a viable business. Lighthouse was also found to have filed misleading or false accounts. The accounts filed recorded that over a 9 year period it had nil assets or liabilities suggestive that it had not traded.

Lighthouse, and its members failed to fully co-operate with the Insolvency Service’s investigation.

Edna Okhiria, Chief Investigator at the Insolvency Service said:

Lighthouse and its members refused to co-operate with our investigation and the court rightly agreed to wind up the partnership.

Paul Waugh’s efforts to obstruct our work were deemed ‘unacceptable’ and ‘deliberate’ by the judge, who also commended the investigation team for its professionalism. Where we find evidence that directors or partners are failing to adhere to their statutory obligations, for example failing to maintain adequate records, we will seek to have them wound-up in the public interest.

As a result, Lighthouse International Group Holdings Trading LLP was wound-up in the public interest in the High Court of Justice Business and Property Courts by Deputy Judge Jones on 28 March 2023. The Official Receiver has been appointed as Liquidator of the LLP and has a statutory duty to investigate the conduct of all current and former partners as part of the Liquidation proceedings.

The press release issued by HM Treasury on 4 April 2023.

HMRC announces date for the first Cost of Living payment during the 2023 to 2024 tax year, for tax-credits only customers.

One million eligible claimant families receiving tax credits, and no other means-tested benefits, will get the first Cost of Living Payment for the 2023 to 2024 tax year from Tuesday 2 May 2023, HM Revenue and Customs (HMRC) has confirmed.

The £301 government payment will be paid automatically into most customers’ bank accounts between Tuesday 2 and Tuesday 9 May 2023 across the United Kingdom. Only eligible families who receive tax credits and no other means-tested benefits will receive the payment from HMRC.

This is the first of three payments totalling up to £900 for those eligible in the 2023 to 2024 tax year.

Chief Secretary to the Treasury, John Glen, said:

Higher prices make life difficult for everyone, which is why our priority is to halve inflation this year.

But we are also going further to support those struggling most, with a total package of support worth an average of £3,300 per household this year and next – including up to £900 in direct cash payments starting next month for families receiving tax credits.

Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, said:

The £301 Cost of Living Payment will deliver vital financial help to eligible tax credit customers across the UK. Further support will be paid in autumn 2023 and spring 2024 to those entitled to payment.

HMRC will pay eligible tax credit customers automatically and with no action required from the customer, to make this as simple and helpful as it can possibly be.

The payment will show as ‘HMRC COLS’ in customers’ bank and building society accounts, so that they know the money is cost of living support.

For tax credit-only customers to be eligible for the £301 Cost of Living Payment, they must have received a payment of tax credits in respect of any day in the period 26 January to 25 February 2023, or later be found to have been entitled to a payment for this period.

Eligible customers do not need to apply or contact HMRC to receive the payment.

The Department for Work and Pensions (DWP) recently announced that eligible households receiving DWP means-tested benefits will receive their first payment for the 2023 to 2024 tax year between Tuesday 25 April and Wednesday 17 May. This includes tax credit claimants who also receive other income-related benefits from DWP.

The payments are part of a package of wider government support announced to tackle the cost of living in the 2023 to 2024 tax year, including:

• a further £300 Cost of Living Payment for eligible families in autumn 2023, with a payment of £299 in spring 2024
• a £150 Disability Cost of Living Payment for eligible disabled people to be paid during summer 2023
• a £300 Pensioner Cost of Living Payment to be paid during winter 2023-24.

This means that the most vulnerable can receive up to £1,350 in direct payments over the coming financial year if eligible.

Including both DWP and HMRC payments, the latest Cost of Living Payment will see more than 8 million households across the UK receive their £301 cash boost by mid-May 2023.

The government is offering help for households. Customers should check GOV.UK to find out what support they could be eligible for.

Additional information

To receive the £301 payment someone must (subject to a very limited exception) have been entitled to a payment of a qualifying benefit as follows:

• eligible tax credit-only customers, who will receive the £301 payment between 2 and 9 May 2023, must have received a payment of tax credits in respect of any day in the period 26 January 2023 to 25 February 2023, or later be found to have been entitled to a payment for this period.
• for joint claimants, where one claimant receives Working Tax Credit and the other claimant receives Child Tax Credit, payments will be made into the same bank account as the Child Tax Credit.
• to be eligible for the DWP payment, families must have been entitled to a payment (or later found to be entitled to a payment) of either:

Universal Credit – payment for an assessment period ending between 26 January 2023 and 25 February 2023.

For all other DWP means-tested benefits, payment in respect of any day between 26 January and 25 February 2023.

• receiving a previous Cost of Living Payment does not mean you will be entitled to a future one. Customers will need to meet the separate eligibility criteria for each payment.

Customers do not need to apply for this payment. If customers are eligible through receiving tax credits only, HMRC will make the Cost of Living Payment automatically into the bank account where claimants already receive their tax credits. Customers might find that their payment is delayed if they have recently closed the bank account their tax credits are usually paid into.

If customers have not let HMRC know that their bank account has changed, HMRC will pay the money into their old bank account, meaning the payment will be rejected. If this happens, HMRC will follow this up by letter to the customer, letting them know that we need updated bank details.

If tax credit customers believe they are eligible but have not received a payment between the published payment dates, they should wait until 16 May 2023 at the earliest to contact HMRC. This is to allow time for their bank, building society or credit union to process the payment. We will not be able to provide customers with any further information before this date.

More than 8 million families on means-tested benefits will receive up to £900 during the 2023 to 2024 tax year, in up to 3 payments. This includes all eligible families entitled to a payment of the following benefits: Universal Credit; Income-based Jobseekers Allowance; Income-related Employment and Support Allowance; Income Support; Working Tax Credit; Child Tax Credit; and Pension Credit.

This payment is tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.

The 3 means-tested cost of living payments are being delivered in 3 slightly different amounts of £301, £300, and £299. The distinct value relates to a specific qualifying period before the payment is made. This allows HMRC and DWP to ensure support is targeted at those who need it and are eligible; to determine if a payee received the correct payment and identify the payment value; and to reduce the risk of fraud as HMRC and DWP will be able to clearly track those who have received payment.

Beware of scams targeting cost of living payments. If someone contacts you about this payment saying they are from HMRC, it might be a scam.

You do not need to apply for this payment. HMRC will never ask for your bank details by SMS or email. Do not let yourself be rushed. Check advice on spotting scams by visiting GOV.UK and searching ‘phishing and scams’. You can also find ways to contact us on GOV.UK – search ‘Contact HMRC’ and choose ‘tax credits’.

The press release issued by HM Treasury on 3 April 2023.

Government extends successful NatWest Group trading plan for a further two years to support the intention to exit its shareholding by 2025-26.

• This represents continued progress in meeting the government’s aim to return its shareholding in NatWest Group to private ownership
• Since the trading plan was established in August 2021, over £3.7 billion in proceeds have been raised

NatWest is on track to return to private ownership as the government announces a two-year extension to its trading plan for NatWest Group (formerly the Royal Bank of Scotland Group plc) today (03 April 2023).

A trading plan involves selling shares in the market through an appointed broker over the duration of the plan. Today’s extension, ensuring the plan will be in place until August 2025, indicates the government’s commitment to returning NatWest Group to full private ownership.

Economic Secretary to the Treasury, Andrew Griffith, said:

We are determined to return NatWest to full private ownership.

Today’s extension marks another significant milestone in delivering this – ensuring we achieve best value for the taxpayer as we sell down the shareholding.

The government’s NatWest Group shareholding currently stands at around 42%, down from around 84% at its peak. The government will only dispose of its NatWest Group shareholding when it represents value for money to do so and market conditions allow.

HMT and UK Government Investments continue to keep other disposal options under active consideration for future sales. Extending the trading plan does not preclude government from using other options to execute future transactions that achieve value for money for taxpayers, including directed buybacks and/or accelerated bookbuilds.

The press release issued by HM Treasury on 1 April 2023.

New rules on lettings for self-catering properties you will need to meet to continue to be eligible for business rates.

From April 2023, new eligibility rules for business rates will apply to self-catering properties in England and Wales.

If you don’t meet these rules your property will become eligible for paying Council Tax.

The rules will be used in assessments from 1 April 2023. The information about lettings during the 2022/23 operating year will be used to determine whether a property is eligible.

The changes

The new eligibility rules are different depending on whether your property is in England or Wales.

If your property is in England:

To continue to be eligible for business rates, from 1 April 2023 your property must be:

• available for letting commercially for short periods that total 140 nights or more in the previous and current year.
• actually let commercially for 70 night or more in the previous 12 months.

If your property is in Wales:

To continue to be eligible for business rates, from 1 April 2023 your property must be:

• available to let commercially for short periods that total 252 nights or more in the previous and current year.
• actually let commercially for 182 nights or more in the previous 12 months.

The VOA looks at whether the property was occupied immediately before midnight to establish whether a property was let on a certain night.

For example, this means that a property let out from Friday evening to Sunday morning would have been let for two nights for the purposes of meeting the self-catering criteria.

What being let commercially means

When we talk about commercially let properties, we mean properties that are let with the intention of making a profit. This usually means the property is let at market rates and actively advertised. For example, using holiday cottage websites, estate agents, and tourist web pages to advertise the property.

Any non-commercial lettings, for example lettings to family and friends for amounts below the market rates, would not count towards commercial lettings.

Who is affected

The new rules apply only to properties classified as self-catering holiday lets by the VOA within the broad use category of short stay accommodation . They don’t apply to other types of accommodation in this category, such as hotels, hostels and guest houses.

There won’t be any exceptions in the application of the new eligibility rules. They will apply equally to all self-catering properties across England and Wales.

New self-catering properties will be liable for Council Tax until the property meets the eligibility rules.

When properties will be assessed using the new rules

Valuation officers conduct a rolling programme to check that properties listed as self-catering properties in the non-domestic rating list meet the eligibility rules. A valuation officer will ask for this information in the ‘Request for Information’ form, which will be sent to you at a later date. It will consider whether you meet the new rules on your actual lettings for your property in 2022/23.

The rolling programme means we will ask customers to give us information at different times during the 2023/24 operating year. But we will be using a universal date, from which we will assess whether the new eligibility rules have been met, of 01 April 2023.

The new eligibility rules will be used in assessments made from 1 April 2023.

Properties may also be reassessed for other reasons. For example, if there has been a change of circumstances or a change of use.

We usually tell customers to tell us as soon as they know about a change in circumstances, such as a self-catering property no longer being used this way. This is so we can add it to the Council Tax Valuation List, and your local council can contact you about your Council Tax bill.

But you don’t need to tell the VOA if you know you won’t meet the new eligibility roles on lettings until after 01 April 2023. This is because we can’t make changes to the Rating List on the new eligibility criteria until it comes into force.

The information used in assessments

The VOA issues forms called ‘Requests for Information’. One of them has been designed specifically for self-catering units and holiday cottages. The information provided on this form is used to check that the eligibility rules for self-catering properties are met.

It’s important that you return this form in time – you will be liable to a financial penalty otherwise. It’s also important to complete it accurately, as it’s a legal document and there can be serious consequences for including false information, including prosecution.

Support available

There are a number of reliefs available to assist businesses, including the Small Business Rates Relief scheme (SBRR). You can find out more about reliefs by contacting your local council.

Any questions about business rates or Council Tax payments should be made to your local council.

The press release issued by HM Treasury on 31 March 2023.

Businesses across the UK can take advantage of the Chancellor’s capital allowances package from today as the new business tax year begins.

• the new business tax year comes in today 1 April 2023, with a new regime to boost investment and spur UK growth
• £27 billion cut to corporation tax, via Chancellor’s new full expensing policy, expected to boost investment by 3% in each of the next three years
• other tax changes coming into force include more business rates relief, extension to the fuel duty cut and a £450 income tax cut for carers

The package, announced at Spring Budget, comprises 100% full expensing and a 50% first-year allowance. It will mean the UK has the most generous capital allowance regime in the OECD worth £27 billion over the next three years, amounting to an effective £9 billion a year tax cut for companies.

The OBR expects this regime to boost investment by 3% over three years.

To mark the milestone, Financial Secretary to the Treasury visited Brompton Bikes in Greenford, London, who’ll be using full expensing to stimulate their growth.

Victoria Atkins, Financial Secretary to the Treasury, said:

“We are determined to make the UK the best place in the world to do business, which is why from today businesses can start to benefit from the raft of tax cuts on offer to boost their growth.

“With full expensing, the more a company invests the less tax they’ll pay, and I encourage companies of any size to take full advantage of this world-leading reform.”

With the new 25% corporation tax rate coming in for the top 10% most profitable companies from today, and the super-deduction ending yesterday, the Chancellor used his Spring Budget to ensure that the UK’s tax system fosters the right conditions for enterprise, investment and growth.

Full expensing lets companies deduct 100% of the cost of certain plant and machinery investments from their profits before tax. It is available from 1 April 2023 to 31 March 2026. It provides the same generosity as the super-deduction, saving firms up to 25p in every £1 of qualifying investment and is for main rate assets – such as construction, warehousing and office equipment.

The 50% First-Year Allowance lets companies deduct 50% of the cost of other plant and machinery, known as special rate assets, from their profits during the year of purchase. This includes long life assets such as solar panels and lighting systems.

Minister Victoria Atkins visited Brompton Bikes in Greenford this week to see how these capital allowances will be used to help the firm invest and grow. The minister toured their factory, viewing a brand new state-of-the-art Autobraze machine and the production line. She also met a selection of 15 trainees currently on Brompton’s training programme.

Phill Elston, Operations Director at Brompton Bicycle, said:

“The announcement of a super deduction replacement is great news for us. In previous years it has meant we could invest significantly in our production capabilities, upgrading equipment and building a more progressive factory; which has seen us move from making circa. 45,000 bikes per year in 2019, to around 100,000 bikes per year in 2022.

“Our mission is to improve how people travel around cities, which in turn creates happier communities, and the new expensing scheme helps to accelerate that goal.”

Other tax measures taking effect today include new domestic and ultra-long Air Passenger Duty bands.

For passengers flying in economy class, the new domestic band will be set at £6.50, a 50% cut to bolster UK-wide connectivity, while the new ultra long-haul band will be set at £91, meaning those who fly the furthest will pay the greatest level of duty.

Transport Secretary Mark Harper said:

“Transport binds the United Kingdom together, and this cut to Air Passenger Duty will make travelling between our family of nations easier than ever.

“Boosting transport links between our four nations sustains jobs, creates opportunities and is an essential part of this Government’s plan to grow the economy.”

Further tax measures include:

• To help household budgets further, the planned 11 pence rise in fuel duty has been cancelled, maintaining last year’s 5p cut for another twelve months, saving a typical driver another £100 on top of the £100 saved so far since last year’s cut.
• More business rates relief, as part of the Chancellor’s £13.6 billion package from 2022’s Autumn Statement. This includes the freezing of the multiplier and the introduction of 75% relief for retail, hospitality and leisure businesses, helping the high street to thrive and compete with online firms.
• Extending creative sector reliefs: theatres, orchestra and museums and galleries will benefit from a further 2 years of tax relief rates of 45%/50%. The museums and galleries exhibitions tax relief sunset clause will be extended for a further 2 years to allow these organisations to fully benefit from the extension of the highest rates.
• The Annual Investment Allowance (AIA), an existing measure which also supports business investment, has been increased permanently to £1 million today. This covers the investment needs of 99% of UK businesses.
• Rebalancing the rates of Research and Development Expenditure Credit and the R&D SME scheme to ensure taxpayers’ money is spent as effectively as possible. As a result, today the UK now offers the joint-highest uncapped headline rate of R&D tax relief support in the G7 for large companies.
• The government also committed to considering the case for further support for R&D intensive SMEs, and at Spring Budget announced that from today there will be an increased permanent rate of relief for the most R&D intensive loss-making SMEs. To support modern methods of innovation, for accounting periods beginning on or after today, businesses will also be able to claim for the costs of datasets and cloud computing under the R&D tax reliefs.
• Expanding the Seed Enterprise Investment Scheme (SEIS) to help more UK start-ups raise higher levels of finance. This package will help over 2,000 start-up companies access finance.
• Expanding the availability and generosity of the Company Share Option Plan (CSOP) scheme which will widen access to CSOP for growth companies and simplifying the process to grant options under the Enterprise Management Incentives (EMI) scheme.

On 6 April 2023 personal tax changes taking effect include removing tax-barriers that the medical community have made clear stop doctors working, delivering on the Prime Minister’s priority to cut NHS waiting lists so people can get the care they need more quickly. The pensions annual tax-free allowance will increase by 50% from £40,000 to £60,000, the Money Purchase Annual Allowance will rise from £4,000 to £10,000, and the Lifetime Allowance charge will be removed. The Office for Budget Responsibility estimate around 15,000 individuals will remain in the labour market because of the changes to the annual and lifetime allowances, many of whom will be highly skilled individuals, including senior doctors in the NHS.

Qualifying Carers Relief will be uprated with inflation from 6 April 2023 to representing a £450 per year income tax cut for carers. The uprating increases the amount of income tax relief from £10,000 to £18,140 plus £375-450 per week for each person cared for.

The press release issued by HM Treasury on 24 March 2023.

• The UK Infrastructure Bank bill has received Royal Assent, confirming the UK Infrastructure Bank’s independence
• A vital part of the Government’s plan to invest in infrastructure, the Bank has already announced £1.2 billion of deals that unlock over £5 billion of private and public investment, driving growth in every region of the UK
• Headquartered in Leeds, the Bank is bringing hundreds of jobs to the city and has already created and supported 4,500 jobs across the country

The Bank provides funding to private companies and local authorities for projects to boost clean energy, improve transport links, expand digital infrastructure, and improve water and waste processing.

The bill will enshrine the Bank’s operational independence, put its objectives to level up the UK and help tackle climate change in statute and set out clear accountability structures.

Having already announced £1.2 billion of deals that unlock over £5 billion of private and public investment, the Bank is tasked with unlocking £40 billion of infrastructure investment by working closely with the private sector and local Government to drive growth and our green industrial revolution.

Andrew Griffith MP, Economic Secretary to the Treasury said:

“The UK Infrastructure Bank has already announced billions of pounds of vital investment as well as creating and supporting over 4,500 jobs UK wide.

“We have a laser focus on growing the economy and delivering high skilled, well paid jobs, as we drive forward this country’s clean energy revolution, creating opportunity in every region of the UK.”

Formally launched in June 2021 the UK Infrastructure Bank has been provided with £12 billion of capital to deploy, with the capacity to issue £10 billion of government guarantees, recently using these powers to unlock £75 million to accelerate full-fibre rollout to 1.5 million homes in the UK.

The Bank will continue its mission to harness investment tailored to the needs of specific local areas, offering a range of financing tools including debt, equity, and guarantees. Further information:

• Confirmation of Royal Assent is available in the Commons business papers and the House of Lords business page
• Full details on the investment deals unlocked by the UK Infrastructure Bank is available on the UKIB website

The press release issued by HM Treasury on 23 March 2023.

The Bill enshrines the Chancellor’s pro-business tax and employment measures that were announced at the Budget into law.

• The Spring Finance Bill 2023 was published today (23 February) legislating for tax changes announced at the Budget.
• Bill delivers the Chancellor’s pro-business tax and employment measures to help grow the economy.
• Generous tax package for businesses worth over £27 billion to come into force on the 1st  April – UK capital allowances regime remains top of the OECD.

The Bill enshrines the Chancellor’s pro-business tax and employment measures announced at the Budget into law.

The measures in the Spring Finance Bill 2023 reward businesses that invest and innovate, recognising how they support growth.

They include two new major capital allowances – full expensing and a 50% First Year Allowance – worth £27 billion over the next three years and amounting to an effective £9 billion a year corporation tax cut for companies.

The Bill also includes pensions tax changes to support 15,000 doctors and other highly-skilled individuals to stay in work, as well as the Brexit Pub Guarantee, an increase in Draught Relief from August to ensure the duty on an average pint of beer at the pub does not increase. Tax incentives to help the creative sector and the new 50% domestic Air Passenger Duty rate are also featured in the Bill.

Financial Secretary to the Treasury Victoria Atkins said:

“This Finance Bill will drive forward our commitment to making the UK the best place to do business.

“It cuts corporation tax for businesses by £9 billion a year and is expected to boost investment by 3% helping grow the UK economy.”

With the new 25% corporation tax rate coming in for the top 10% most profitable companies from 1 April, to help get debt down after hundreds of billions in Covid-19 and energy bills support, and the super-deduction ending, the Chancellor used his Spring Budget to ensure that the UK’s tax system fosters the right conditions for enterprise, investment and growth.

Jeremy Hunt confirmed two major capital allowances – 100% full expensing and a 50% First Year Allowance – which ensures that the UK’s capital allowances regime continues to be the joint most competitive in the G7 and OECD. Together these are worth £27 billion over the next three years. An effective £9 billion a year corporation tax cut for UK businesses.

Full expensing lets taxpayers deduct 100% of the cost of certain plant and machinery investments from their profits before tax. It is available from 1 April 2023 to 31 March 2026. It provides the same generosity as the super-deduction, saving firms up to 25p in every £1 of qualifying investment and is for main rate assets – such as construction, warehousing and office equipment.

The 50% First-Year Allowance lets taxpayers deduct 50% of the cost of other plant and machinery, known as special rate assets, from their profits during the year of purchase. This includes long life assets such as solar panels and lighting systems.

The Office for Budget Responsibility predict together that these capital allowances changes will increase investment by 3% during each year it is in effect.

The Spring Finance Bill 2023 also delivers on the Prime Minister’s priority to cut NHS waiting lists so people can get the care they need more quickly, by removing tax-barriers that the medical community have made clear stop doctors working. On 6 April 2023, the pensions annual tax-free allowance will increase by 50% from £40,000 to £60,000, the Money Purchase Annual Allowance will rise from £4,000 to £10,000, and the Lifetime Allowance charge will be removed. The Office for Budget Responsibility estimate around 15,000 individuals will remain in the labour market as a result of the changes to the annual and lifetime allowances, many of whom will be highly skilled individuals, including senior doctors in the NHS.

As well as reforms to capital allowances and pensions tax, the Chancellor Jeremy Hunt announced other measures that are also featured in today’s Finance Bill to boost investment and get the economy growing. These include:

• Confirming an increase in Draught Relief to ensure the duty on an average pint of beer at the pub does not increase, and confirming duty rates for other alcohol will go up by RPI (10.1%) on the same day that historic alcohol duty simplification reforms and new reliefs take effect (1 August 2023). Only possible by leaving the EU.
• OECD Pillar 2 Global Minimum Tax rules in the UK – internationally agreed by 135 jurisdictions in October 2021 – will help protect the UK tax base against aggressive tax planning and reinforce the competitiveness of the UK by levelling the playing field for UK firms.
• Extending creative sector reliefs. Theatres, orchestra and museums and galleries will benefit from a further 2 years of tax relief rates of 45%/50%. The museums and galleries exhibitions tax relief sunset clause will be extended for a further 2 years to allow these organisations to fully benefit from the extension of the highest rates.
• Air passenger duty reforms. From 1 April 2023, a new domestic band will apply to flights between airports in England, Scotland, Wales and Northern Ireland, cutting APD by 50% to bolster UK connectivity. A new ultra long-haul band will also take effect, ensuring that those who fly the furthest, and have the greatest impact on emissions, incur the most duty.

The Bill received its first reading in Parliament on Tuesday 21 March, with the majority of measures coming into effect for financial year 2023-24. It will now follow the normal passage through Parliament.

The press release issued by HM Treasury on 22 March 2023.

HMRC has published new simplified VAT guidance for overseas sellers sending goods to the UK.

HM Revenue and Customs (HMRC) has published simplified VAT guidance for overseas sellers, with a new translation aimed at Chinese retailers that sell goods online into the United Kingdom.

The guidance, Selling goods using an online marketplace or direct to customers in the UK has been translated into simplified Mandarin to support sellers exporting goods from China to comply with UK import and VAT regulations.

In 2022, the UK imported £83.3 billion in goods and services from China and Hong Kong. Online shopping accounted for 26.5% of all UK retail sales in 2022, with a substantial number of goods being bought from international sellers via online marketplaces.

HMRC is encouraging UK agents and shipping companies to share the simplified guidance with their customers.

The information explains when and how VAT and import duties must be charged to customers by international sellers. It explains the different processes for direct to customer sales, and for sellers using online marketplaces.

Marc Gill, HMRC’s Director for Individuals and Small Business Compliance, said:

We have been working closely with international partners to better understand what information overseas sellers need in order to comply with their UK tax obligations.

We have acted on feedback from businesses to simplify and compile this online guidance into one, easily accessible place on GOV.UK. We have also recently published a simplified Mandarin translation of our guidance following research conducted with Chinese businesses.

By making our VAT and import duty rules easier to understand, we will be able to increase tax compliance levels for online sellers. We are asking UK freight, customs and shipping agents to help us reduce the tax gap by sharing this simplified guidance with their customers. By working together, we can help everyone pay the right amount of tax at the right time.

HMRC’s updated guidance has been published following detailed consultation and research with overseas sellers and brings together all relevant guidance in one place on GOV.UK. By making the process clearer and easier to follow, it will support overseas sellers to comply with their tax obligations and help HMRC to reduce the tax gap.

In 2018, HMRC signed an updated Memorandum of Understanding (MOU) with the General Administration of Customs China (GACC). During the 10th UK-China Economic and Financial Dialogue in 2019, HMRC agreed to provide Chinese businesses with appropriate tax and customs guidance.

In 2020, HMRC commissioned research with Chinese online sellers. The report, Knowledge and attitudes of online sellers in China to UK tax compliance, was published in 2021. Recommendations from that research led to the development of new guidance and its translation into simplified Mandarin.

The press release issued by HM Treasury on 16 March 2023.

The annual Women in Finance report published today shows the finance sector is making great strides in increasing female representation in finance in senior management roles.