HMRC have issued their Agent Update for February 2022. We have summarised the key content for you with links to our detailed guidance on the topics covered.
Update to Job Retention Scheme claims information on GOV.UK
- From February 2021, HMRC published a monthly list of employers who claimed under the Coronavirus Job Retention Scheme (CJRS) on GOV.UK.
- Under the rules of the scheme, CJRS claims information will only be publicly available for one year.
- This means that on a month-by-month basis, HMRC will remove this information from GOV.UK starting from 18 February 2022.
Claiming back Statutory Sick Pay due to Coronavirus
Reminder to declare Coronavirus grants on company tax returns
Self Employment Income Support Scheme (SEISS): late claims and review requests
- Late claims and review requests for Self Employment Income Support Scheme (SEISS) grants must be made by 28 February 2022, but only where the original claims window was missed because of exceptional circumstances.
- If HMRC agree, your client can make a late claim and they should call the helpline on 08000 241 222.
- The online service to apply for a grant has now closed but it can still be used to access SEISS grants information to help complete tax returns accurately.
SEISS: taxpayers with two Unique Taxpayer References (UTRs)
- A very small number of customers with two UTRs have informed HMRC about an issue when trying to report SEISS grants on their Self Assessment tax return.
- Taxpayers may have two UTRs for several reasons, such as where a voluntary arrangement is in place or because of bankruptcy.
- HMRC are working to stop this from happening, but if you have a client with two UTRs who is having issues reporting their SEISS grants, as their agent you or they can call HMRC on 08000 211 222 for support.
Budget Payment Plan for Self Assessment
- Self Assessment taxpayers whose payments and returns are up to date have the option to start a Budget Payment Plan.
- Taxpayers can set up and manage their Budget Payment Plan using their HMRC online account and make regular advance payments by Direct Debit payments towards their next Self Assessment tax bill, reducing what they will have to pay on the 31 January and 31 July deadline.
- Taxpayers can decide the regular weekly or monthly amount they want HMRC to collect and choose to:
- Amend their regular payment amount.
- Suspend payment for a period of up to six months
- Cancel it at any time.
- Taxpayers must ensure that any balance still owing at the normal due date, after subtracting their Budget Payment Plan payments, is paid off by that due date.
- Any balance still owed after the due date will attract interest.
Income Tax Self Assessment call for evidence deadline extended
- The closing date for the call for evidence on Income Tax Self Assessment registration for the self-employed and landlords has been extended to 22 March 2022.
Paying HMRC: QR codes
- Taxpayers logged into their HMRC account can choose to scan a QR code to complete the payment on their mobile devices.
- Taxpayers paying this way should be reassured that an HMRC QR code is genuine only if it is presented while logged into their HMRC account via the Government Gateway.
- Payment details displayed on their mobile banking platform should mirror those shown in their HMRC online account.
- The QR code will first be displayed when taxpayers are logged into their HMRC online account through the Government Gateway, on a desktop browser.
- They will then be able to use their mobile phone to scan the code which will allow them to complete the payment on their mobile.
- HMRC will never send a QR code to a customer. If your clients receive a QR code this way, it’s a scam.
Notification of uncertain tax treatments by large businesses
- The Uncertain Tax Treatment provisions are due to to take effect from 1 April 2022.
- On 18 January 2022, HMRC published a further iteration of draft technical guidance on GOV.UK for stakeholder review and are aiming to publish a final version of technical guidance by 28 February 2022.
VAT Reverse Charge on construction and building services
- A reminder that the VAT Reverse Charge on construction and building services came in on 1 March 2021.
Annual Tax on Enveloped Dwellings (ATED) returns 2022-23
- If you haven’t registered to use HMRC's online service, you have until 1 April 2022 to register.
- The ATED period is 1 April 2022 to 31 March 2023. Where your client owns a property on 1 April 2022, returns for that period must be filed by 30 April 2022.
- You can begin populating an online ATED return for 2022-23 from around mid-March, but can’t submit it before 1 April.
- When preparing to send your client’s 2022-23 ATED return, you must use the same credentials used to set up the ATED record.
- If your client has disposed of a property, please send an amended return or contact HMRC to tell them about the change.
- Let HMRC know if your client has changed relief code for a property or had a change in their circumstances.
Student and Postgraduate Loans Repayment Thresholds and Rates For 2022-23
Scottish Student Loan: Self Assessment
- From 6 April 2022, Plan 4 deductions (in respect of Scottish Student Loan borrowers) should be included on Self Assessment tax returns.
- Agents completing a Self Assessment tax return on behalf of their client should include Plan 4 deductions in the 2021-22 return.
Freeports Employer National Insurance Contributions relief
New National Minimum Wage and National Living Wage rates
Health and Social Care: National Insurance Contribution increase
Making Tax Digital for VAT
- All VAT-registered businesses need to be signed-up and ready for Making Tax Digital (MTD) from 1 April this year.
- Since April 2019, businesses with a taxable turnover above £85,000 have been required to follow MTD, keeping digital records and filing VAT returns using MTD compatible software.
- All VAT-registered businesses, regardless of turnover, must file digitally through MTD from April 2022.
Agent services account: email verification
- HMRC will soon be adding email verification when agents set up a new agent services account (ASA).
- This means, when agents are setting up their ASA, they will receive an email from HMRC with a link to verify their email.
Penalty reform for VAT is postponed by nine months
- The introduction of the new penalties for late submission and/or payment of VAT returns, along with changes to interest charges is postponed from 1 April 2022 until 1 January 2023.
National Insurance holiday for employers of veterans
Automation of PPI/R40 Claims
- HMRC has seen a significant increase in PPI taxed interest repayment requests from agents.
- To reduce the number of cases in HMRC's queues and speed up the processing time of applications, HMRC are developing an IT solution to automate the processing of some PPI taxed interest repayment applications.
- To make sure you get any repayments due as soon as possible, applications should be submitted using the following guidance:
- Individual applications should be submitted for each tax year on the existing standard R40 form.
- Do not include any other tax reclaim types within that R40 form.
- Only include the agent details on the spaces provided on the R40 form.
- Do not include covering letters.
- Post the claims to the new dedicated PPI tax interest reclaims address: PPI tax interest claims, HM Revenue and Customs, BX9 1ZR
- The automated service is reliant on the receipt of a standard application. HMRC expect automation of these forms to begin in late Spring.
- Any applications not received in the correct format will not go through automation and will take longer to process.
Tax Agent Toolkits
- HMRC have a number of agent toolkits available for you to download and use here.
- If your client is in dispute with HMRC over an appealable tax decision, you may be interested in the Alternative Dispute Resolution (ADR) service. For more information visit the ADR webpage.
- HMRC have a regular Tax agent blog.
- You can make a Complaint to HMRC on behalf of a client.
- Employers can register to Receive email alerts.
- You can Find out when you can expect to get a reply from HMRC to a query or request you have made.
- The Agent Forum is a platform where agents raise potential widespread issues and ask questions about HMRC’s systems and processes.
- Agents can Register for the Agent Forum.
Data availability on services using Application Programming Interfaces (APIs)
- Several queries have arisen on the Agent Forum on the availability of data on services using Application Programming Interfaces (API).
- Data is only available:
- For taxpayers who are registered for Self Assessment and had any employment in the given tax year.
- Once PAYE reconciliation has completed.
- This is the process that determines whether the individual has paid the right amount of tax and, for PAYE-only taxpayers, results in a P800 in the event of overpayment or underpayment.
- Reconciliation each year starts on or around 6th June and runs for around one million individuals per working night. It is usually completed by the end of September. It is not possible to know when reconciliation will be complete for a specific individual.
- If HMRC are expecting a P11D, reconciliation will not start for that individual until this has been received and processed. If a P11D is received unexpectedly, HMRC will re-run the reconciliation.
- Data is no longer available once HMRC have received and processed the corresponding Self Assessment return.