Tax Dispatch: February 2023

Welcome to Tax Dispatch: the latest roundup from BKL’s tax experts.

In each issue we cover a different specialist area of tax, while highlighting some things you may have missed.

Tax Dispatch is also available via email. If you’d like it sent to you, you can subscribe here.

VAT: HMRC Changes to Option To Tax

HMRC are changing the way Option To Tax (OTT) notifications need to be made and recently issued Revenue and Customs Brief 1 (2023) which details this change.  The key points and our recommendations are:

  • As of the start of February 2023, HMRC will no longer issue OTT notification receipt letters.
  • OTT notifications should now be sent by email to [email protected] including the address and the effective date of the OTT in the subject line. We would also recommend that the name of the opter and their VAT number be included.
  • This will prompt HMRC to send an automated response email which confirms receipt and can be retained as evidence of notification as the subject line includes all relevant details.
  • OTT notifications sent by post will not be acknowledged.
  • It is not yet clear what will happen when a company registers and opts to tax at the same time. Until HMRC clarifies this point, we recommend that the OTT be sent by separate email to the application to the VAT registration, to the email address above.
  • HMRC will not confirm the existence of an OTT on a particular property unless the OTT date was more than six years ago, and will respond to requests by liquidators’ LPA receivers.

For more information about VAT compliance, or advice on complex queries, the VAT specialists in our tax team would be pleased to help.

Tax team on video: demergers

More members of our team been talking tax on camera recently. Our latest videos feature Business Tax Manager Sam Inkersole on the tax considerations for demergers, and Property Tax Director Andrew Levene on property demergers specifically – both in conversation with our Head of Tax Anthony Newgrosh.

Our latest webinar

Also available to watch on our website is the recording of this month’s webinar on the commercial and tax considerations when buying a business. It was hosted by Anthony Newgrosh, Sam Inkersole and our Head of Corporate Finance Daniel Shear.

If you’re exploring the idea of an acquisition, we would be happy to provide guidance.

BKL in the professional press

As well as being seen and heard on camera, we frequently share our tax expertise in print.

There was one issue of Tax Journal this month (Issue 1607) we particularly liked: we were on the cover twice! Tax Director Helena Kanczula had written an article explaining the myriad tax issues to consider when structuring a UK acquisition (available to Tax Journal subscribers here), while a BrassTax article by Tax Consultant David Whiscombe (see below) was republished in the same issue.

We’re grateful too to Taxation magazine for printing contributions made by members of our tax team (Terry Jordan and Helena) to its Readers’ Forum, where tax professionals seek each other’s advice. Among those republished on our website is an older one that you might find interesting in view of recent news from Margate: the tax implications of a Banksy mural on a main residence.

Tax Dispatch focus: R&D tax reliefs

The 23-year history of R&D (research and development) tax credit schemes in the UK has seen a growing need for reform. In advance of the major changes due to take effect in April 2023, Anthony Newgrosh explores what this shifting landscape means for businesses looking to take advantage of the schemes.

The long and winding R&D

Guest article: director’s loan account credits

In addition to insights from our tax experts, from this issue we’re pleased to bring you articles from Mark McLaughlin. Mark is highly experienced as a tax author, editor and consultant.

In his first guest article, Mark looks at the timing of loan account repayments for tax purposes.

Director’s loan account credits: It’s all in the timing!

Plastic packaging tax: first anniversary

Plastic packaging tax (PPT) was introduced on 1 April 2022. In its first six months the revenue arising was c£136m, but HMRC data suggests that there are a number of businesses which have yet to bring their affairs up to date.

Ahead of its one-year anniversary, Helena Kanczula examines PPT, including registation requirements, tests and charges.

PPT unwrapped


Thank you to everyone who follows our BrassTax articles. Whether you read them via your inbox, here on our website or as republished in Tax Journal and ICAEW TAXline, we’re glad to have you along as we explore the complexities and surprises of the tax landscape.

If you’re new to BrassTax, you might enjoy our month by month highlights from 2022.

More recent BrassTax topics have included:

  • SDLT Additional Dwelling Supplement repayments, and surcharges
  • Corporation tax changes from 1 April 2023
  • Partnership tax returns and partner profit share
  • VAT penalty changes effective 1 January 2023
  • Furnished holiday lettings

If you don’t already receive BrassTax, you’re most welcome to subscribe via this page.

By the way, we call it BrassTax because in it we aspire to strip away the complications of tax and deal with the practical details – to get down to brass tacks, in fact.

Ever wondered where the phrase comes from, though? No-one seems entirely sure. Our favourite is from the furniture business: repairing upholstered furniture requires removal of the outer layers of fabric to get back to the structural webbing underneath – which is often secured by brass tacks. But if any of you have a better suggestion – let us know!

Browse our insights

Key dates

1 March: Corporation tax liabilities for accounting periods ended 31 May 2022 become due for payment

14 March: Quarterly instalment payments (large company)
1st payment for 31 August 2023 accounting period due
(also, 2nd payment for 31 May 2023 period, 3rd payment for 28 February 2023 period and 4th payment for 30 November 2022 period)

14 March: Quarterly instalment payments (very large company)
1st payment for 31 December 2023 accounting period due
(also, 2nd payment for 30 September 2022 period, 3rd payment for 30 June 2022 period and 4th payment for 31 March 2023 period)

15 March: Spring Budget

31 March: Filing deadline for March 2022 corporation tax returns (and for amendments to 31 March 2021 returns)

1 April: Corporation tax liabilities for accounting periods ended 30 June 2022 become due for payment

1 April: Main rate of corporation tax increases to 25%

5 April: Income tax year ends

14 April and 14 May: Quarterly instalment payments (large company) potentially
1st payments for 30 September 2023 & 31 October 2023 accounting periods
2nd payments for 30 June 2023 & 31 July 2023 periods
3rd payments for 31 March 2023 & 30 April 2023 periods
4th payments for 31 December 2022 & 31 January 2023 periods

14 April and 14 May: Quarterly instalment payments (very large company) potentially
1st payments for 31 January 2024 & 29 February 2024 accounting periods
2nd payments for 31 October 2023 & 30 November 2023 periods
3rd payments for 31 July 2023 & 31 August 2023 periods
4th payments for 30 April 2023 & 31 May 2023 periods

30 April: Filing deadline for 2023/24 ATED returns

30 April: Filing deadline for April 2022 corporation tax returns (and for amendments to 30 April 2021 returns)

1 May and 1 June: Corporation tax liabilities for accounting periods ended 31 July 2022 and 31 August 2022 become due for payment

Are there any particular topics you’d like us to cover in a future edition of Tax Dispatch? Let us know by getting in touch with your usual BKL contact or by using our enquiry form.



Sam Inkersole

In 2022, Sam won the Taxation’s Rising Star award at the Taxation Awards in and was named in the Accountancy Age 35 Under 35.

Jon Wedge

While Jon’s client work focuses on the financial services sector, he also oversees the firm’s assurance service, as well as supporting the trainees following in his footsteps.


Elana joined us in 2017 as an ACA trainee, after graduating from Durham University where she had studied languages. She is now a manager in our assurance team.


By submitting this form, the data provided will be used to perform your request according to our privacy policy.