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

Class 1A National Insurance Contributions (NICs) payable on Termination Awards and Sporting Testimonial Payments

From April 2020:

See Termination, redundancy and leaving payments (from 6 April 2018)

Are your donations eligible for Gift Aid?

See Gift Aid

Student Loans Starter Checklist

See PAYE: starter checklist - new employee

Help your clients understand the High Income Child Benefit Charge (HICBC)

People who receive Child Benefit and earn over £50,000 may have to pay the High Income Child Benefit Charge.

Telling your clients about the HICBC may help avoid facing a penalty.

See High Income Child Benefit charge

Self Assessment (SA) Returns

When completing the student loan repayment section of your clients SA return and the Student Loans Company have said repayments were due to start on or before 6 April of the year in question, you need to;

Temporary Increase in the Annual Investment Allowance (AIA)

See Annual Investment Allowance (AIA) and AIA & WDA: rules where there is a change of rate

VAT Reverse Charge on construction and building services

The reverse charge on construction and building services measure comes into effect on 1 October 2019. UDPATE: on 6 September 2019 the start was delayed to 1 October 2020.

The key aspects are:

See Construction Industry reverse charge 

Disguised Remuneration Loan Charge

See Disguised remuneration loan charge (subscriber guide)

Loan Busting Schemes

See When the tax inspector calls and Spotlights 36, 39, 49, and 50 for more information.

Corporate Interest Restriction (CIR)

The guidance on CIR has now been uploaded into the Corporate Finance Manual.

See Corporate Interest Restriction 

Self Assessment (SA) and Class 2 NICs

HMRC has received feedback from agents that they are encountering problems where Class 2 NICs is not included in the SA calculation when they are expecting it to.

See New business: sole trader compliance checklist

Reporting PAYE in real time

HMRC have published an article in the August 2019 Employer Bulletin confirming that following a review of the effectiveness of the risk-based approach to PAYE late filing and late payment penalties they have decided to continue this approach throughout the 2019-20 tax year.

See Penalties: RTI (Real Time Information) for PAYE

Welsh Rates of Income Tax (WRIT)

WRIT came into operation from 6 April 2019.

See Welsh Income Tax Rates

Seasonal Workers

See Auto-enrolment: workplace pensions (subscriber guide)

Corporation Tax - Repayments Made Easier

Off-payroll working rules from April 2020

The responsibility for applying the off-payroll working rules is changing from April 2020.

See Off-payroll working: At a glance

Trust Registration Service (TRS)

HMRC have recently deployed the first feature for the Trust Registration Micro Service that allows users to register a will trust that contains:

Further features will be delivered between now and the end of the year.

Protecting your data - Authorising an agency to act on behalf of a trust for the Register

Later this year HMRC will be releasing more functionality to the TRS to allow amendments to be made.

See UK trusts 

Making Tax Digital (MTD) Update

VAT Certificate

Most customers that have signed up to MTD for VAT are now able to view their VAT Certificate in their Business Tax Account. The functionality for agents to access this information will be delivered in August, in the meantime they should call the VAT helpline to request VAT Certificate information.

See Making Tax Digital: VAT (subscriber guide) 

Agent Services Account (ASA)

Authorising new clients

See our Blog: Trying to sign up to Making Tax Digital for VAT

Anti Money Laundering requirements

It has been a requirement since 2009 for accounting service providers to register for Anti Money Laundering Supervision (AMLS). Agents must enter their AMLS details when they create an ASA.

Contact & HMRC service

Other content

Other recent publications

External link:

Agent update 73