The new requirement to report uncertain tax treatments will apply to returns due to be filed on or after 1 April 2022. The new guidance helps businesses understand how HMRC will handle the new legislation and what businesses should wexpect when it comes in.

The policy is new legislation, which applies to corporation tax, VAT, and income tax, for partnerships, and including amounts collected through PAYE, and is designed to improve HMRC’s ability to identify uncertain tax treatments adopted by large businesses earlier and to accelerate the discussion between the parties of the tax treatment.

Large businesses are defined as having a turnover of above £200m a year, a balance sheet of over £2bn, or both.