Agent update: September 2021

HMRC have issued their Agent Update for September 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 CJRS closes on 30 September 2021.
• The deadline for CJRS claims for September 2021 is 14 October 2021. 
• For September 2021, employers can claim 60% of employees’ usual wages for hours not worked, up to a cap of £1,875.
• Employers must top-up employee wages to at least 80% of their usual wage for the hours they do not work, up to a cap of £2,500 a month.

See COVID-19: Coronavirus Job Retention Scheme (CJRS) from 1 November 2020

How to get a duty deferment account if you have delayed declarations

• For non-controlled goods brought into Great Britain from the EU, you may be able to delay sending HMRC the full information about your goods by up to 175 days after import.
• To do this, a duty deferment account to make supplementary declarations is needed.
• Find more information about delaying declarations for EU goods brought into Great Britain here.

Tax conditionality

• From April 2022 in England and Wales, the renewal of certain licences will only be given if the person applying can show they have completed a tax check with HMRC.
• Licences affected are: 
  • Taxi driver licences. 
  • Private Hire Vehicle (PHV) driver licences. 
  • PHV operator licences. 
  • Mobile collector and site licences for scrap metal dealers. 
• When renewing licences, applicants must complete a basic online check to confirm they are registered for tax if they need to be.  
• Due to the simplicity of the check and its link to licensing processes, agents cannot complete the check on a client’s behalf. 

 See Conditionality

VAT reverse charge on construction and building services

• The VAT reverse charge on construction and building services came in on 1 March 2021. 

See CIS: Construction Industry reverse charge

The Trust Registration Service (TRS)

• The Trust Registration Service is now open for non-taxable trust registrations.  
• Non-taxable trusts have until 1 September 2022 to register unless the trust is specifically excluded. 
• Trusts that become registerable after 1 September 2022 must register within 90 days, and thereafter trustees must keep the information held on the TRS updated within 90 days of a change in circumstances occurring. 

See Trust Registration Service 

Student loans: occupational pension and Off-Payroll Working rules Full Payment Submissions (FPS) indicators

• HMRC have identified cases where FPS's show student loan deductions and the:
  • Occupational pension or Off-Payroll Working rules indicator is selected erroneously. 
• Student loan deductions are not due on occupational pension scheme payments or payments that are subject to the Off-Payroll Working rules.

Making Tax Digital for VAT 

Manage your client’s VAT account online

• Within the next few weeks, functionality will be added to view client payment due dates and payment history online.

Changes to the VAT group registration and amendments forms

• HMRC have combined VAT forms VAT50 and VAT51 into form VAT50/51.  
  • This form will be required for all new VAT group registrations from 13 September 2021.
• Later developments to the VAT registration service will mean HMRC will be able to gather the data for up to 20 group members digitally.
  • The VAT50/51 form will still be required for group registrations with more than 20 members.
• Changes to group amendments will remain a manual print and post-process.

See Groups

Agent Talking Points 

• Agents are invited to send their requests or ideas for Agent Talking Points webinars to HMRC: This email address is being protected from spambots. You need JavaScript enabled to view it.

Tax Agent Toolkits

• HMRC have 19 agent toolkits available to download and use here.

Agent authorisations when firms reorganise

• HMRC have published additional guidance for Agents on moving clients between client lists.
• HMRC will not action any requests to move a client to a different client list, whether as part of a restructuring such as a merger, sale of practice or any other reason. A new authorisation will be required instead. 
  • Agents can continue to use existing authorisations until the new authorisation is in place. Where an agent record is closed, e.g. due to the cessation of a business, the associated authorisations will also be terminated.
  • If an agent recognises their client’s consent is no longer valid, they should deauthorise the client to protect their data.

Agent Service Accounts 

• When a business changes its legal entity, it will need to create a new Agent Service Account.
  • New client authorisations are needed to make sure the client is consenting to the new legal entity acting on their behalf.

Services outside of the Agent Service Account

• Agents can access services not within the agent service account, on a tax-by-tax basis but must register for each separate service.
• Agents are allocated an agent code once registered: one agent can have several agent codes e.g. for separate taxes or offices.
• When an agent-client relationship is created using an authorisation process, the agent code is used to indicate which client list to add the customer to. It is the agent code, not the agent business, that is authorised. 
  • If an agent wants to move a client to an alternative client list a new authorisation must be provided to HMRC stating the new agent code. 

See Agent Update December 2020

Tax disputes

• Agents are reminded of HMRC's Alternative Dispute Resolution (ADR) service which applies to disputes with HMRC over appealable tax decisions.
  • An impartial HMRC mediator works with all parties to prevent unnecessary litigation.
• HMRC hope to resolve tax disputes within 120 days using a collaborative and flexible approach, which does not affect the client’s right to appeal or review.

Registering for self-employment and paying Class 2 National Insurance Contributions without a National Insurance number

• Due to Coronavirus, the Department for Work and Pensions suspended face-to-face interviews for applying for a National Insurance (NI) number.
  • Taxpayers without an NI number, wanting to register as self-employed, were advised to use form SA1 and contact HMRC to arrange collection of NI contributions.
• It is now possible to apply for a National Insurance number again. Taxpayers can return to using form CWF1 to register as self-employed.

See Self-employment: Registering for Tax

VAT overseas refunds for non-UK businesses

• HMRC tested the secure data exchange service for overseas VAT refund claims with a small number of agents in 2020. This trial is now being extended to all agents with a history of submitting these claims to HMRC. The trial starts in September 2021 and runs to 30 November 2021.
• You can register your interest in taking part in the trial.

Where’s My Reply? for tax agents

• Find out when you can expect to get a reply from HMRC to a query or request you have made.
• There is a dedicated service for tax agents to:
• • Register as an agent to use HMRC online services.
  • Process an application for authority to act on behalf of a client.
  • Amend your agent details.

Manual updates 

• The domicile chapter within the Residence, Domicile and Remittance Basis manual now includes the changes applicable from the introduction of deemed domicile.

Agent Forum

• 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 here. 

Agent Dedicated Line

• A trial of the repurposed Agent Dedicated Line (ADL) began on 14 June 2021. Professional Bodies are meeting HMRC in September 2021 to review the performance of the trial.

External link

Agent Update: issue 88