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HMRC have issued the Agent Update for April/May 2019. We have summarised the key content for you with links to our detailed guidance on the topics covered.

Some of the items included in this update were also included the April 2019 Employer bulletin, rather than duplicate these we have linked to that update accordingly where appropriate.

EU Exit

The update includes details about changes for UK self-employed workers working in the EU, European Economic Area (EEA) or Switzerland in a no deal situation, specifically in respect of social security contributions and what individuals need to do to prepare. See GOV.UK for more details.

Refreshed Offshore Tax Compliance Strategy

HMRC have launched “No Safe Havens 2019” which brings together their approach towards offshore tax compliance and covers a range of behaviours, from simple mistakes to avoidance, and evasion.

More information on HMRC’s strategy for offshore tax compliance can be found on GOV.UK.

See Offshore income toolkit and Time limits for assessment: offshore. 

HMRC’s corporate criminal offences for failing to prevent tax facilitation - what they are and what to do

See Corporate Criminal Offence: Failure to prevent tax evasion

Annual Tax on Enveloped Dwellings (ATED)

See Annual Tax on Enveloped Dwellings (ATED) 

Tax-Free Childcare - quarterly reconfirmation process

Tax-Free Childcare is a government scheme that helps working parents, including the self-employed and company employees, with their childcare costs, providing up to £2,000 per child, per year to spend on qualifying childcare.

See Tax-Free Childcare

Apprenticeship levy funds transfer limit to increase in April 2019

From April 2019, the amount of funds that levy-paying employers can transfer to other employers to support apprenticeships will increase from 10% to 25%, subject to the rules on transfer.

See Apprenticeship levy (employers briefing)

Help your clients protect their State Pension

Making a claim to Child Benefit can help protect entitlement to the State Pension.

See High Income Child Benefit charge

Scottish Income Tax

The 2019-20 Draft Budget was passed by the Scottish Parliament on Thursday 21 February 2019.

See Scottish Income Tax

Welsh rates of Income Tax (WRIT)

WRIT are in operation from 6 April 2019.

See Welsh income tax

Corporation Tax

Extension of Non-resident Capital Gains Tax (CGT) on UK property or land:

From 6 April 2019, Finance Act 2019 provisions bring more disposals of interests in UK property or land by non-residents into charge to UK tax by including the disposal of non-residential UK property.

Filing requirements for Non-resident CGT:

Your clients need to complete a Non-resident CGT return when they sell or dispose of any UK property or land after April 2019 (previously applied to residential property only). HMRC must be notified within 30 days of the conveyance date using HMRC’s online form.

The following must complete a NRCGT return:

Summary of key changes from 6 April 2019

See Non-Resident CGT: UK property

Reminder of changes to instalment payments for very large companies

The Corporation Tax (Instalment Payments) (Amendment) Regulations 2017 introduced changes to the quarterly instalment payments regime.

See Corporation Tax Instalment payments

Claim a refund for Construction Industry Scheme (CIS) deductions

See CIS: Contractors and Sub-contractors 

PAYE

P11D and P11D(b) for the tax year 2018 to 2019

The deadline for reporting expenses and benefits in kind to HMRC for tax year ending 5 April 2019 is 6 July 2019.

Details on when you will need to submit a P11D(b) form can be found on the Employer Bulletin: April 2019.

P11D and cars

Payrolled benefits

If your clients payroll benefits they may still have a Class 1A NIC liability. See Employer Bulletin: April 2019 and Payrolling of benefits

Diesel Supplement Company Car Tax Changes to meet Euro standard 6d 

See Employer Bulletin: April 2019 and Company cars.

Student Loans

See Employer Bulletin: April 2019.

Starter checklist

From 2019-20 onwards, employers should use the New starter checklist. It includes a new section for PGL.

See PAYE starter checklist: new employee 

Changes to the Earlier Year Update (EYU)

From April 2019 HMRC are running a trial aimed at simplifying the process for reporting corrections by extending the use of the Real Time Information (RTI) Full Payment Submission (FPS).

See Employer Bulletin: April 2019 for more details.

Disguised Remuneration Loan Charge

The disguised remuneration loan charge came into effect on 5 April 2019.

Loan Charge Reporting Requirements:

See Disguised Remuneration loan charge 

Self Assessment (SA) Payments on Account (POAs)

There is an ongoing problem whereby POAs for 2018-19, in some instances, have not been created from the 2017-18 tax return.

The due date for the first POA for 2018-19 was 31 January 2019. As this date has now passed HMRC should not create a POA unless:

If HMRC create the requested POAs interest will accrue until the payment is made.

VAT: Building and construction services reverse charge

The building and construction services reverse charge for VAT measure comes into effect on 1 October 2019:

See Reverse Charge cross border services

How to monitor an Online VAT Registration application

The best way to monitor the progress of a VAT Registration application is through your Agent Services Account. You will see a notification acknowledging receipt and the status of the VAT Registration Application. You will find the VAT Registration number here too when the application is processed.

See Registering for VAT and Agent Services Account: top tips

Off-payroll working rules (IR35)

There has been a change to the guidance for people working through their own intermediaries in the public sector. The change is to the second paragraph for ‘Salary’ under the heading ‘Pay Yourself Through Your Company’. The new paragraph reads: “You should report non-taxable payments your company pays you on the Full Payment Submission (FPS) that your payroll software produces”.

Off-payroll working rules from April 2020:

See IR35  and Employer Bulletin: April 2019

Digital research and development (R&D) credits form for small and medium sized enterprises (SME) claimants

A digital report form is now available to support R&D claims by SMEs. The form has been designed so that it can be used by unrepresented claimant companies, as well as agents. A digital form for R&D expenditure credit claimants will be released later in spring 2019.

See R&D and Patent Box

Making payments to HMRC easier

Your clients can now pay their Self Assessment, Employers PAYE and Corporation tax quickly by using the green ‘Pay now’ button on GOV.UK.

From 31 March 2019 this facility is extended to other taxes including:

Unpaid work trials and the National Minimum Wage

See Employer Bulletin: April 2019.

Contact & HMRC service

Other content

Other recent publications

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Agent update 71