Other news in brief

On 4 March 2024, Finance Act 2024, Schedule 1 (Research and Development) (Appointed Day) Regulations 2024 was published and appointed 1 April 2024 as the day when Schedule 1 of Finance Act 2024 will come into force (i.e. applying to accounting periods beginning on or after 1 April 2024). This schedule introduces legislation for the new merged research and development (R&D) tax incentives scheme, as well as additional relief for loss-making R&D-intensive SMEs via a higher rate of payable tax credit. 1 April 2024 is also relevant in determining the accounting period for which a company is entitled to the higher rate of payable tax credit for loss-making R&D-intensive SMEs from 1 April 2023.

On 28 February 2024, the PAC published its report on HMRC’s performance in 2022-23. The report is largely critical of HMRC’s performance, with the first line stating that “the overall level of customer service provided by HMRC has reached an all-time low.” HMRC told the PAC’s inquiry that they did not have the resources to meet rising demand for their phone and post services at expected standards. They instead are directing callers to use digital services which they insist are good quality. However, the PAC received a lot of evidence to the contrary from taxpayers and their agents. The Committee agreed its report before the publication of the HMRC consultation response which indicated that they will not now require digital interaction until a service is of a suitable standard.