Other news in brief

Following a consultation on the implementation of the OECD’s Model ‘Reporting Rules for Digital Platforms’, HMRC have announced that new reporting rules for digital platforms will be delayed by one year and start from 1 January 2024, with submission of the first reports due by the end of January 2025. HMRC say that this will give platforms and their advisors time to prepare for the implementation of the new rules. HMRC are aiming to publish the consultation response, draft regulations and an update on the interaction with EU rules at Legislation Day and say they will engage with platforms and their advisors before the new rules come into effect.

HMRC have published a new consultation regarding the expansion of the Investment Transactions List (ITL) for the Investment Management Exemption (IME) and other fund tax regimes. The publication of the consultation follows the Government’s announcement on 4 April 2022 that it was intending to expand the ITL used by the IME in order to remove disincentives from UK investment managers including cryptoassets within portfolios. The consultation also aims to encourage new cryptoasset investment businesses to establish themselves in the UK. The consultation asks for stakeholders’ views on the types of cryptoassets which should be included within the ITL for the purpose of the IME. HMRC are also exploring whether cryptoassets should also be included within the ITL for the purposes of other fund tax regimes. The consultation will close on 18 July 2022.

HMRC have issued guidance (at CFM62900) on new regulations designed to prevent tax mismatches arising where derivatives are used to hedge currency risk on anticipated future share transactions. See this previous article and this previous article for an overview of those regulations and where they might assist.

HMRC have written to traders following the recent announcement of the Government’s intention to introduce legislation to make changes to the Northern Ireland Protocol. HMRC confirmed that traders “do not need to take any action now” and “can continue to move goods in exactly the same way as you’ve been doing”. HMRC also confirm “we will give plenty of notice before any changes come into effect – the UK Government will give businesses and citizens clarity and certainty about the new arrangements we will put in place. There will not be any changes to how things work without us communicating that to businesses well in advance.” The communication also contains a commitment that the Government will work closely with business and business representative bodies as the new arrangements are developed.

The Prime Minister’s Office has published terms of reference for a new Future of Work Review. In summary, its objectives are to identify key questions on the future of work that the Government should prioritise (building on its existing commitments, including those made in response to the Taylor Review), provide a detailed assessment of selected issues, and make recommendations to guide long-term strategic policy making. Tax rates are specifically excluded from its scope. Key policy questions/challenges suggested in the terms of reference include the role and speed of automation, and how the Government could build on flexibility in the labour market to encourage productivity and growth whilst ensuring appropriate worker protections. The review will be led by Matt Warman MP and work will be undertaken over spring and summer 2022.

Voluntary pay gap reporting can you give an edge, but is data protection a barrier or enabler? Donna Sharp, Partner in KPMG Law in the UK, looks to bust myths and address concerns KPMG have seen and supported employers with, in practice.

Emily Salathiel, Director, Employer Reward Services, KPMG in the UK, discusses the top five payroll software trends in 2022 and beyond, and how employers can utilise automation and cloud technology to enhance the employee experience, as they transform their Payroll, HR and Finance functions.