HMRC have issued their Agent Update for July 2021. We have summarised the key content for you with links to our detailed guidance on the topics covered.
Coronavirus Job Retention Scheme (CJRS)
- The deadline for CJRS claims for June 2021 was 14 July 2021. Claims for July 2021 must be submitted no later than Monday 16 August 2021.
- A reminder: it is a condition of the scheme that employers pay the associated employee National Insurance Contribution (NIC) and Income Tax to HMRC.
The Government will pay:
- 70% of employees’ usual wages for hours not worked, up to a cap of £2,187.50, to the end of July 2021.
- 60% in August 2021 and September 2021, up to a cap of £1,875.
VAT deferral: scheme is now closed
- The VAT deferral new payment scheme is closed. A 5% penalty and interest may be charged if businesses did not pay in full, join the VAT new payment scheme by 21 June 2021, or make an arrangement to pay by 30 June 2021.
Online print and post VAT1 for manual applications for VAT registration
A new print and post version of VAT1, for manual applications, was introduced in November 2020 and amended in December 2020.
- A reminder that this is the form to be used now: HMRC are still receiving older versions of VAT1 from agents.
Additional forms are required for some business activities where:
- You are joining the Agricultural Flat Rate Scheme.
- You are registering a Group of companies with separate VAT numbers.
Tax avoidance: don’t get caught out
HMRC’s ‘Tax avoidance — don’t get caught out’ campaign helps contractors make informed choices when people or businesses offer them tax avoidance schemes.
- Help your clients spot tax avoidance schemes by highlighting the dangers and financial risks.
- Follow HMRC guidance on how to report an avoidance scheme, how to get out of a scheme and on working through an umbrella company.
VAT reverse charge on construction and building services
The VAT reverse charge on construction and building services came in on 1 March 2021.
Extended loss carryback: claims information for companies
The temporary extended loss carryback rules allow companies to carry back losses for three years where they arise in accounting periods ending between 1 April 2020 and 31 March 2022.
- Claims that exceed a de minimis of £200,000 must be made in a company tax return using box 45 (claim or relief affecting an earlier period) on the CT600.
- There is no need to submit amended returns for earlier periods; the claims will be treated as amendments to those returns.
- Claims below the de minimis limit may be made outside the company tax return.
Corporate Interest Restriction Return: Application Programming Interface
- HMRC has developed an Application Programming Interface (API) for sending interest restriction returns and reporting company appointments/revocations. It will be available from late July 2021. The APIs can be found on the HMRC Software Developers Hub.
- HMRC is considering mandating the use of APIs but this will not happen before 1 April 2022.
Student loan types
There are four types of student loans collected through PAYE and Self Assessment.
To ensure your employees do not pay any more or less than necessary you should:
- Check your online account for student/postgraduate loan start and stop notices.
- Take the correct action to start loan deductions as soon as possible.
- Record the deductions correctly on your Full Payment Submission (FPS).
See Student Loans
Bank and building society interest
- HMRC receives details from UK financial institutions of taxable interest paid to taxpayers in the previous tax year, matches it to customer records, then sends taxpayers a PAYE calculation.
- To avoid being incorrectly taxed, taxpayers should use their personal tax account to check that the information is correct and complete and contact HMRC if it is not.
Review of online Capital Gains Tax (CGT) guidance
HMRC is reviewing online guidance to make the CGT UK Property Disposal process clearer. They will provide further details of this in the next Agent Update.
The Trust Registration Service (TRS)
- The TRS opens to non-taxable trusts in Summer 2021. Non-taxable trusts can register trust details on an invited basis. See Agent Update: June 2021
See also Trust Registration Service
Agent Talking Points
- There is a new process for clients who receive an email from their agent asking them to authorise the agent to act on their behalf via a link in the email to prevent clients from incorrectly creating duplicate Government Gateway logins.
Introducing ‘pay by bank account’
Taxpayers can use a new payment method to pay HMRC straight from their bank account with no need to enter card details.
See Employer Bulletin: June 2021 for more details.
Tax Administration Strategy: The consultations and calls for evidence listed below have now closed.
- Call for evidence: the tax administration framework: closed 13 July 2021.
- Call for evidence: timely payment: closed 13 July 2021.
- Consultation: raising standards in the tax advice market: closed 15 June 2021.
- Consultation: clamping down on promoters of tax avoidance: closed 1 June 2021.
Tax Agent Toolkits
HMRC have 19 agent toolkits available for you to download and use here.
Agent Forum and engagement
Other recent publications