From 1 April 2022, businesses must notify HMRC when they take a tax position in their returns for VAT, corporation tax, or income tax (including PAYE) that is uncertain. This is defined as:
- A provision has been made in the accounts for the uncertainty; or
- The position taken by the business is contrary to HMRC’s known interpretation.
Taxpayers need to notify HMRC only where the tax advantage is expected to be over £5m for a 12-month period.
Written 14 January 2022.