HMRC Customs Update – Take action now to continue importing goods
If your business imports goods into the UK, then you need to move to the Customs Declaration Service (CDS) now. If you do not, you will not be able to import goods into the UK from 1 October 2022.
Even if you use a customs agent to help you with customs declarations, there are still actions you need to take. You will need to:
- Subscribe to the Customs Declaration Service.
- Choose a payment method.
- Check your standing authorities are correctly set up.
- Give your customs agent or broker customs clearance instructions.
It can take a few weeks to move the CDS, so you should subscribe as soon as possible.
HMRC’s trader checklist will help you make sure you’ve taken the necessary steps.
You can set up a standing authority on the Customs Declaration Service on your customs financial account. You can also change, add or delete these in the same place.
By 30 September 2022, you need to set up a new Direct Debit Instruction for the Customs Declaration Service if you use a duty deferment account. If you do not do this, you will not be able to use your duty deferment account and will need to make immediate payments each time you make an import declaration.
See: Customs Declaration Service – GOV.UK (www.gov.uk)
Manufacturing support for using artificial intelligence (AI)
Innovate UK Knowledge Transfer Network (KTN) are offering manufacturing businesses an opportunity to register for individual one-to-one meetings to explore the uses of artificial intelligence (AI) within their operations and learn how to access Knowledge Transfer Partnership (KTP) funding to address their challenges.
The AI team at Innovate UK KTN, in collaboration with the KTP programme and the Manufacturing Made Smarter Innovation Network, will virtually support manufacturing businesses from all sectors to explore the uses of artificial intelligence within their operations. During these sessions, they will help identify projects that can be funded through the KTP programme – an open competition which offers support rates between 50 to 75 per cent of the eligible project costs.
Attendees will also get the chance to learn further details about the programme, with dedicated KTP advisers available to facilitate the discussions and help shape potential projects which will benefit their business R&D initiatives. The event will be delivered online on Thursday 8 September 2022.
See: KTP Programme Support: Innovating the Manufacturing sector using AI – Innovate UK KTN (ktn-uk.org)
Innovation loans future economy competition: round five
Innovate UK is offering up to £25 million in loans to micro, small and medium-sized enterprises (SMEs). Loans are for highly innovative late-stage research and development (R&D) projects with the best potential for the future. There should be a clear route to commercialisation and economic impact.
Your project must lead to new products, processes or services that are significantly ahead of others currently available, or propose an innovative use of existing products, processes or services. It can also involve a new or innovative business model.
You must be able to show that you:
- Need public funding.
- Can cover interest payments.
- Will be able to repay the loan on time.
The closing date to apply is 14 September 2022.
Draft of The Environmental Protection (Single-use Plastic Products) (Wales) Bill
This Bill proposes to ban or restrict the sale of some of the most commonly littered single-use plastics in Wales. The Bill was published last week to allow Senedd Members and interested stakeholders an opportunity to see the proposed scope and direction of the Bill before its formal introduction in the autumn. It is not published for further consultation at this stage. Work continues on the preparation of the Bill and there are likely to be changes before it is introduced to the Senedd. Therefore, this is not the final version.
Latest HMRC advisory fuel rate for company cars
HMRC has announced their suggested reimbursement rates for employees using a company car for private travel. The suggested rates from 1 September 2022 are summarised in the table below. Where there has been a change, the rate for the previous quarter is shown in brackets. Remember that the fuel benefit does not apply if all private fuel is fully reimbursed by the employee/director.
| Engine Size | Petrol | Diesel | LPG |
| 1400cc or less | 15p
(14p) |
9p | |
| 1600cc or less | 14p
(13p) |
||
| 1401cc to 2000cc | 18p
(17p) |
11p
|
|
| 1601 to 2000cc | 17p
(16p) |
||
| Over 2000cc | 27p
(25p) |
22p
(19p) |
17p
(16p) |
If the employer’s policy is that they do not pay for any fuel for the company car, these are the amounts that can be reimbursed to the employee (for qualifying business journeys) for the payments to be tax-free. You can continue to use the previous rates for up to 1 month from the date the new rates apply.
Note that for hybrid cars you must use the petrol or diesel rate and for fully electric cars the rate is 5p per mile.
Employees using their own car
Where employees use their own car for business journeys, the tax-free reimbursement rate continues to be 45p per mile plus 5p per passenger. Despite lobbying, this rate has not increased for nearly 10 years! Note that the employer can reclaim input VAT on such payments based on the figures in the above table. For example, if an employee drives their own 1500cc car for business journeys and is reimbursed 45p per mile, then 18p per mile is deemed to represent the cost of petrol. The employer may claim 3p per mile (1/6) as input VAT, provided the employee submits a fuel receipt to support the claim.
