Rule changes on the deduction of income tax at source
The measure
To give HMRC the power to amend the rules relating to the time and manner in which individuals and other non-corporates need to report and remit the income tax they deduct from payments of interest, patent royalties and other annual payments. Currently, those persons are required to deliver an account of the payment to HMRC 'without delay'. This change will give HMRC the power to amend when and how a person should report the income tax they have deducted.
Who will be affected?
Individuals and other non-corporates that make payments of interest, patent royalties or other annual payments. Companies making such payments are unaffected.
When?
This will be included in a Finance Bill after the summer recess and will have effect from the date that legislation receives Royal Assent.
This will give clarity to the 'when and how' payment of the withheld tax should be reported to HMRC.
