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HMRC have issued the Agent Update for February/March 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 February 2020. Rather than duplicate these we have linked to those updates where appropriate.

Future relationship with the EU

Now that we have left the EU, we have entered a transition period that lasts until 31 December 2020.

Deadline extended for grant funding

Disguised remuneration: independent review of the loan charge and what it means for your clients

See Employer Bulletin: February 2020 and Disguised Remuneration loan charge.

Capital Gains Tax Payment for Property Disposals

From April 2020, Capital Gains Tax (CGT) due on the disposals of a UK residential property must be reported and paid to HMRC within 30 days of completion of the disposal.

HMRC is seeking tax agents representing UK and non-UK resident individuals or trusts who are likely to need to report CGT on UK property for a client after 6 April 2020 and their clients to help trial the new online 'Report and pay CGT on UK property' service. Email This email address is being protected from spambots. You need JavaScript enabled to view it. with your name and contact number to join the trial.

See CGT: payment of tax and Reporting capital gains: how to?

Research and Development Claims

HMRC say 98% of the backlog for R&D claims had been processed according to plan by 1 November 2019. Due to the huge increase in claim volumes in December 2019, while the transition of R&D processing work to HMRC Business Tax and Customs was ongoing, there may be some further delays in dealing with claims.

For technical queries regarding R&D email This email address is being protected from spambots. You need JavaScript enabled to view it. detailing the nature of the query and requesting a call back.

See our R&D zone for details on the different R&D reliefs and how to claim them.

Company car changes: the diesel supplement and ultra-low emission cars

See Employer Bulletin: February 2020.

Sending your client’s 2020-21 Annual Tax on Enveloped Dwellings (ATED) return

The ATED period is 1 April 2020 to 31 March 2021 and returns for that period must be filed by 30 April 2020 where your client owns a property on 1 April 2020.

See Annual Tax on Enveloped Dwellings (ATED)

Reminder: Changes to the Short-Term Business Visitors (STBVs) special arrangement under Regulation 141

See Employer Bulletin: February 2020

Help HMRC improve the Corporate Interest Restriction (CIR) Return

See Corporate interest restriction

Student and Postgraduate Loans

See Employer Bulletin: February 2020

Changes to the coding-out of debt via Self Assessment (SA)

HMRC currently code-out outstanding debts relating to SA where customers have not settled their debt and failed to engage with them, from the 6 April following the notification letter.

See Collecting tax debts via PAYE

New National Minimum Wage rates announced

See Employer Bulletin: February 2020 and National living wage rates /National minimum wages rates

Marriage Allowance

See Marriage Allowance (Transferable married couples allowance)

Reporting expenses and benefits and PAYE Reporting final PAYE submissions

See Employer Bulletin: February 2020

Preparing for changes to the Employment Allowance

See Employer Bulletin: February 2020

National Insurance rates and thresholds for tax year 2020-21

See National Insurance: rates and Employer Bulletin: February 2020

Class 1A liabilities payable on Termination Awards, Sporting Testimonials and Sporting Testimonial Payments come into effect from 6 April

See Employer Bulletin: February 2020  and Termination, redundancy and leaving payments (from 6 April 2018).

Corporation Tax

Non-resident company landlords and Corporation Tax Corporation Tax Unique Tax Reference Number (CT UTR)

Non-resident company landlords (NRCLs) are currently chargeable to Income Tax on the profits of their UK property businesses. From 6 April 2020 they become chargeable to Corporation Tax.

Action required when the CT UTR is provided:

See Non-resident landlord scheme

Review of off-payroll working rules from April 2020

The government has commissioned a review of the upcoming reform to the off-payroll working rules.

See Call for evidence: Extension of the off-payroll working rules to the private sector and Employer Bulletin: February 2020.

Parental Bereavement Leave and Pay

See Employer Bulletin: February 2020

Booklet 480 available online

HMRC has published a new online version of the expenses and benefits for directors and employees – a tax guide: booklet 480.

Tax Disputes

Is your client in dispute with HMRC over an appealable tax decision? HMRC offer an Alternative Dispute Resolution (ADR) service where HMRC hopes to resolve your tax dispute within 120 days.

Consultations

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

Contact & HMRC service

Other content

Other recent publications

External link:

Agent update 76: February – March 2020