Following the introduction of the Trust Registration Service (TRS) in 2017, HMRC have issued more guidance about how to deal with existing trusts, access for agents who cannot use the online system and 2016/17 tax returns for new trusts.
The TRS requires new UK trusts to be registered online and existing trusts to file information online. The first deadline for trusts created in 2016/17 has just passed, being 5 January 2018, with existing trusts having to be added by 5 March 2018 to avoid penalties.
HMRC have confirmed in their guidance that:
- Where a trust was set up several years ago and
- The value of assets put in on creation was notified to HMRC previously (through form 41G or SA900 tax return)
the trust should complete the “Other assets” box with the term ‘Already notified’ and include an asset value of £1.
They have also advised that because the online service is currently only available to UK agents, with overseas agents not having digital access until summer 2018, such agents will need to contact the trusts and estates helpline to request a data capture sheet through the post in order to register their UK client trusts.
Likewise for agents such as solicitors who do not have an HMRC Online services agent account, a data capture sheet will be required; a solution for online access for these agents was promised for early January 2018 but does not yet appear to be in place.
One problem for advisers with these issues is the requirement for UTR’s for new trusts to enable their 2016/17 trust tax returns to be filed on time. HMRC have confirmed that:
- If trustees, or an agent acting on behalf of trustees, file the trust Self-Assessment return within 3 months of receiving a UTR then no penalties will be incurred.
- If the tax return is, however, filed later than 3 months after receipt of the UTR then a penalty will be applied.
- The payment of any tax owed for 2016-17 will need to be made by 31 January 2018 or interest and penalties may result.
Finally once a record has been submitted via the TRS there will not be the facility for it to be reviewed or updated until later in 2018, therefore summary pages should be printed and kept to provide a record of what has been submitted.
Links:
Trust registration deadline extended again
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