HMRC have issued their Agent Update for October / November 2016: we have summarised the key content for you with links to our detailed guidance on the topics covered.
HMRC topical issue reminders
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The Scottish rate of income tax applies from April 2016:
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Your clients will need to pay this if they lived in Scotland for most of the tax year.
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It’s important that client address details with HMRC are up to date.
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Restriction of interest relief for residential landlords will be phased in from April 2017. See Restricting mortgage interest relief
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Expenses and benefits:
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The deadline for submitting P11D, P9D and P11D(B) for tax year 2015/16 was 6 July 2016.
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If no expenses or benefits were paid during the tax year you have to either submit a nil return or complete the 2015/16 ‘Employer – No return of Class 1A’ form.
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See P11D forms
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When a business stops employing people they need to tell HMRC immediately: see Employer Bulletin 62.
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Two new VAT Briefs are highlighted:
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Brief 13 (2016): VAT, the liability treatment of a dwelling formed from more than one building. This sets out a change in policy in this area: see VAT & multiple building dwellings: HMRC policy change
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Brief 14 (2016): VAT, Deduction of VAT on pensions fund management costs following Court of Justice of the European Union decision in PPG. This announces a 12-month extension to the transitional period which was due to end on 31 December 2016.
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Some current disclosure campaigns are highlighted:
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The worldwide disclosure facility: now open to disclose a UK tax liability which relates wholly or partly to an offshore matter.
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The let property campaign: HMRC have launched a gateway page to bring together their e-learning, webinars and toolkits.
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Minor amends to other VAT guides are highlighted, including:
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VAT Notice 704: VAT retail exports
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VAT Notice 704/1: tax free shopping in the UK
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VAT Notice 723A: refunds of VAT in the European Community for EC and non-EC businesses.
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VAT Notice 725: the single market.
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VAT Notice 741A: place of supply of services
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HMRC PAYE and payroll reminders
The update includes reminders and links to HMRC guidance on the following issues:
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Auto enrolment:
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It is now time for clients to go through re-enrolment.
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The Pensions Regulator provides more information, including updated guidance and a new essential guide on re-enrolment for employers.
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State pension top up:
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This lets state pension recipients boost retirement income by up to £25 a week.
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Applications close 5 April 2017.
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Employment intermediaries
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HMRC are running a campaign for employment intermediaries who supply workers to third parties and PAYE is not operated to help them understand their reporting obligations.
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Penalties are now being issued automatically when returns are received late.
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Disguised remuneration: if you want to get transitional relief on investment growth you must register to settle with HMRC by 31 October 2016. See Disguised remuneration: changes from 2016 onwards
HMRC service reminders
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HMRC working with Tax Agents Blog. This provides another channel to communicate about consultations, news and updates, and the rollout of new digital services for agents.
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HMRC twitter account Twitter@HMRCgovuk.
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Agent Account Managers (AAMs). A UK wide team of AAMs will liaise with HMRC and agents regarding client issues when normal channels break down.
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Complain to HMRC. An online form is now available to make complaints about Self Assessment and PAYE Income Tax.
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Construction Industry Scheme (CIS) for businesses based outside the UK: details about registrations have been updated.
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Where’s my reply? This service provides an estimated date that HMRC will respond to queries.
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Want to volunteer? HMRC are looking for agents to help with their digital services research.
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Email alerts for employers. Agents should encourage employers to register for email alerts to be notified about coding changes and information published on Government Web pages.
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Future online downtime. HMRC provide information about planned downtime which will affect the availability of online services.
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Staying safe online. HMRC provides details and updates of scams that they are aware of together with information to help identify genuine and bogus contact.
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Statutory payments calculator: this should not be used when a mistimed payment has occurred in the relevant period.
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Business Tax Account: changes to Corporation Tax paper form. HMRC will now no longer issue:
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Certain non-statutory forms where these are available online.
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Company copies of certain non-statutory forms where these are sent to an agent.
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Agent copies of certain statutory forms where the agent and registered office address are the same.
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Paper versions of guidance notes with CT forms.
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Consultation responses
The update lists the following open consultations, all of which are due to close in October or November this year:
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Tackling the hidden economy: conditionality, sanctions and extension of data gathering powers to the money service business.
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Business income tax: Simplified cash basis for unincorporated property business.
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Business income tax: Simplifying tax for unincorporated businesses.
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Making Tax Digital: Bringing business tax into the digital age.
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Making Tax Digital: Transforming the tax system through the better use of information.
The update also lists recent HMRC responses to past consultations:
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‘Lifestyling’ of Child Trust Funds (CTF).
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Simplification of the tax and NIC treatment of termination payments.
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Statistical consultation: possibility of ceasing publication of HMRC’s Personal Wealth National Statistics
Other content
In addition to the above, the update contains its usual mix of briefing notices and toolkits, and an update on Working Together
A link to the published Update can be found here or accessed via HMRC's website www.gov.uk.
