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HMRC have issued the Agent Update for December 2019/January 2020. 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 in the Employer Bulletin December 2019, rather than duplicate these we have linked to those updates accordingly where appropriate.

Be prepared to send your client’s 2020-21 Annual Tax on Enveloped Dwellings (ATED) return online

Please note when preparing to file your client’s 2020-21 ATED return:

See Annual Tax on Enveloped Dwellings (ATED)

How to check that an investor correctly declares money received from offshore investment funds

Offshore Investment Funds are funds that are not based in the UK.

Check the status of the Offshore Investment Funds

HMRC have approved some Offshore Investment Funds and given them a status called a ‘reporting fund’.

How we tax Offshore Investment Funds

Reporting funds

Non reporting funds

See Offshore income toolkit

What an investor needs to do:

If an amendment is needed to a tax return, the investor/their agent can:

See Making a tax disclosure (Digital Disclosure Service) and Requirement to correct

What to expect from a statutory review

If HMRC makes an appealable decision and your client disagrees with it, they can have it reviewed.

An individual from a specialist independent team of review officers will carry out the review who will take into account wider HMRC policy in reaching their decision.

If your client wishes to challenge HMRC’s interpretation of the law, guidance or policy, they can do so at Tribunal.

Purpose of a review:

Starting a review:

Review procedure:

Once the case is allocated case, the caseworker provides the review officer with their case papers and any information they relied on in making their decision. The review officer will write to your client to introduce themselves, explain when they will conclude the review and give your client the opportunity to send in any further information or arguments for consideration.

The review officer will decide if the decision is:

The review officer will not normally contact the caseworker or discuss the case with them unless they need to do so to understand the decision better, to locate documents or to clarify evidence.

Outcomes of a review:

At the end of the review, the review officer will conclude if the decision is:

The review conclusion letter:

Review deadline:

The review officer will aim to complete the review as quickly as possible; the statutory period is 45 days but this can be extended by agreement. If a review is not concluded in 45 days, or a longer agreed period, the decision is deemed to be upheld.

What should you do?

See How to appeal an HMRC decision and Statutory Review (by HMRC)

High Income Child Benefit Charge deadline 31 January

See Employer Bulletin: December 2019

Updates to 2019-20 Self Assessment Tax Returns for Student and Postgraduate Loan Borrowers

2018-19 Self Assessment (SA) Exclusions and Specials Documents

On 4 October 2019 HMRC published on GOV.UK updated versions of both the 2018-19 Exclusions and Specials documents. The latest version of the Exclusions document can be found here and the latest version of the specials document is here

Structures and Buildings Allowances (SBA)

See Structures and Buildings Allowance (SBA)

Non-resident company landlords and Corporation Tax

Corporation Tax Unique Tax Reference Number (CT UTR):

Non-resident company landlords (“NRCLs”) are currently chargeable for Income Tax on the profits of their UK property businesses and file a paper Non-resident Company Income Tax Return (SA700). This will change from 6 April 2020 when they become chargeable to Corporation Tax.

In late January to early February 2020 HMRC will write to each NRCL (through an automatic process based on the information provided in the 2017-18 Non-resident Company Income Tax Return) to let them know their CT UTR and set out what they need to do and when.

Action required when the CT UTR is provided:

See Non-resident CGT: UK property

Ultra Low Emission Vehicles

See Employer Bulletin December 2019. 

Tax Disputes

If your client is in dispute with HMRC over an appealable tax decision HMRC offer an Alternative Dispute Resolution (ADR) service. This involves an impartial HMRC mediator working with all parties to prevent unnecessary litigation. For more information visit: https://www.gov.uk/guidance/tax-disputes-alternative-dispute-resolution-adr

See How to appeal an HMRC decision

Consultations

You can check the status of tax policy consultations on gov.uk or see Finance Act 2019: tax update & rolling planner 2019-20

Agent Toolkits – supporting you through the Self Assessment (SA) period

The following toolkits may help minimise errors on 2018-19 SA tax returns:

Contacts & HMRC services

Other content

Other recent publications

The Pensions Regulator – Workplace pensions – remind your clients to keep paying in

See Employer Bulletin December 2019 

External link:

Agent update December 2019/January 2020