HMRC have issued their Agent Update for November 2022. We have summarised the key content for you with links to our detailed guidance on the topics covered.
Tax
Plastic Packaging Tax: check if your clients need to register
- Businesses manufacturing or importing 10 tonnes or more of plastic packaging in a 12-month period must register for Plastic Packaging Tax.
Preparing for the new tax year basis: Income Tax Self Assessment
- The rules for calculating chargeable business profits for Income Tax Self Assessment are changing from 1 April 2023.
- This will affect the 2023-24 tax return due on 31 January 2025.
- 2023-24 will be a transition year and from 2024-25, the tax year basis will apply, replacing the current year basis.
- Those businesses with a 31 March through to 5 April year ends will be unaffected.
- 2023-24 is likely to see more profits taxed in the year due to the transition.
- Some figures used may have to be provisional.
- New HMRC guidance will be published shortly.
Working through an umbrella company guidance
- HMRC has updated the guidance available for umbrella company workers.
- There is also a new page on Key Information Documents, produced by the Department for Business, Energy and Industrial Strategy (BEIS).
- The new guidance can be found on GOV.UK.
See Starting Work 5: Agency or Umbrellas
Paying voluntary Class 2 NICs in deferred 2020-21 tax returns
- 3,900 customers have been identified as having deferred the filing of their 2021-21 tax return and having paid voluntary Class 2 NICs.
- If a return is filed after 31 January, the calculation will not accept voluntary contributions.
- HMRC will be writing to all of these customers in December 2022, to explain how to resolve the issue.
- If your clients have been affected but do not receive a letter, contact the National Insurance general enquiries helpline.
Completing Self Assessment for student and postgraduate loan borrowers
- If you are completing a Self Assessment tax return for a client who has an outstanding student or postgraduate loan, the following must be included within the return:
- The PAYE income for each employment.
- The loan deductions from each employment.
- Further guidance is available
See Student Loans
Venture Capital schemes: new online service for advance assurance (EIS/VCTs/SEIS)
- From 27 October 2022, there will be a new online service for advance assurance for any of the following venture capital schemes:
- Enterprise Investment Scheme (EIS).
- Seed Enterprise Investment Scheme (SEIS).
- Venture Capital Trusts (VCTs).
- A copy of the authorisation to act on behalf of the company, signed and dated within the last three months, must be provided with the application.
- Apply online here
See EIS or SEIS: Advance assurance from HMRC
Reporting rules for digital platforms: draft regulations
- Following consultation, the government has published draft regulations for reporting rules for digital platforms.
- The draft regulations set out the due diligence, record-keeping and reporting obligations for platform operators.
- Penalties for failing to comply are included.
- Technical feedback is requested by 13 December 2022 and can be sent to
This email address is being protected from spambots. You need JavaScript enabled to view it. .
See Reporting rules for Digital Platforms Consultation responses
Alcohol Duty reform: views sought
The technical consultation on the reform of Alcohol Duty was open for feedback until 18 November. The responses will be used to inform the draft legislation.
P87 forms: information requirements
- P87, the employment expenses form, is to be changed.
- The following information will become mandatory:
- Section 1 - all details except title and contact number.
- Section 2 - employer PAYE reference.
- Section 2 - type of industry if claiming flat rate expenses.
- Further information on when the changes will have effect will be published shortly.
Real-Time Information (RTI): reporting advances of salary
- Salary advances currently require additional RTI reports.
- It is recognised that this is an additional administrative burden for employers and can lead to HMRC errors.
- Secondary legislation is to be amended so that these advances can be reported on or before the contractual payday and will only require reporting once.
- Further information will be available in a future HMRC Employer Bulletin.
Update on UK implementation of global tax reform
- The OECD's International Tax Framework is being reformed through Pillars 1 and 2.
- Pillar 1's Amount A (aligning taxable profits with customer bases) and Amount B (transfer pricing reforms) are currently subject to consultation with rollouts expected during 2023 and 2024.
- Pillar 2 is the global minimum tax rate.
- A UK domestic minimum tax has been the subject of consultation and legislation can be expected in Finance Bill 2022-23.
See UK delays global minimum tax rate
Making Tax Digital
Making Tax Digital for VAT: make sure your clients are signed up
- Unless exempt, all VAT-registered businesses should be using Making Tax Digital (MTD).
- The VAT online account is no longer available for filing returns unless the business is currently under the registration threshold and has yet to sign up to MTD. For those businesses, it will be available for one return only.
- Check here for exemptions.
VAT registration service
- The way businesses register for VAT is changing. To access the service on behalf of your client's visit: VAT: registration applications, exceptions and changes.
- You will need to provide your name, phone number and email address.
- Upon registration, your clients will automatically be signed up for Making Tax Digital.
Agent services account: removing references to 'Making Tax Digital' for VAT.
- As all VAT-registered businesses were mandated to sign up to Making Tax Digital (MTD) for VAT from 1 April 2022, from now on the account will only refer to VAT as a service and not MTD VAT.
Agent services account
Manage Access Groups
- Manage Access Groups is being developed as a new feature within agent services.
- It will allow agents to control who within the agency can access client records.
- HMRC is looking for volunteers from agents who have more than 1,000 clients. If you are interested, email
This email address is being protected from spambots. You need JavaScript enabled to view it. .
If your clients have outstanding deferred VAT
- Deferred and unpaid VAT can attract a 5% penalty and interest.
- Businesses with deferred VAT due between 20 March 2020 and 30 June 2020, which was not paid by the 30 June 2021 deadline will be subject to the 5% penalty but have the right to appeal.
Get ready for new VAT late submission penalties
- The new penalty regime for late submission and payments for VAT will start on 1 January 2023.
- VAT interest charges are also being changed to bring them in line with Income Tax Self Assessment.
See Penalties: Late Filing MTD
HMRC agent services
HMRC is now using card readers for payments
From 31 October 2022, card readers will be available for taking payments during face-to-face visits. The payments can be for payments in full or as part of a Time to Pay arrangement. The aim is to reduce calls to the helpline. You can confirm the identity of HMRC staff here.
Stopping paper Bacs repayment notifications for Self-Assessment and Corporation Tax
From 16 December 2022, HMRC will stop issuing paper repayment notices for Self Assessment and Corporation Tax.
VAT overseas refunds for non-UK Businesses: electronic submission of claims
Although still in the test phase, the Secure Data Exchange Service (SDES) is now open to all agents and businesses. The service launched on 17 October 2022 and registration is available until 30 November 2022. Applications can be made on the system for overseas VAT refund claims. Claims for the period 1 July 2021 to 30 June 2022 must be submitted by 31 December 2022.
VAT First Repayment Claims: new digital G-form
Since Autumn 2021, some newly VAT-registered businesses who submit a repayment claim on their first return, will receive from HMRC a letter asking them to check the claim and complete a questionnaire which also provides evidence supporting the claim. This questionnaire is now available online. The G-form can be accessed on GOV.UK by searching 'Send details to support your VAT repayment claim'.
Business advisers: help your employer clients stay on top of their workplace pensions duties
HMRC is urging agents to ensure their clients are meeting their pension auto-enrolment duties. Errors may lead to fines. Further help and guidance can be found at the Pensions Regulator website.
The Administrative Burden Advisory Board (ABAB): Tell ABAB Report
The Tell ABAB Report 2022 has been published. It is an insight from small businesses, conducted between April and May 2022. You can comment on the report by contacting:
Income (PAYE) Record Viewer: a new service for agents
The Income Record Viewer is now live. It allows agents to access (view-only mode) PAYE and pension information that their clients have available to them via their personal tax accounts. The client's details can be viewed for the current and previous four tax years.
You must obtain new authorisation from clients to use this service: the client will need to set up a Government Gateway account to achieve this.
- Access: All agents have access through the agent services account homepage. Using the viewer for the first time for a client (by entering the client's National Insurance number and date of birth) will trigger an authorisation link, which the client will need to use to authorise your use. Subsequent use is by entering the client's National Insurance number and selecting the relevant year to view.
- Navigation: You can view the following information:
- Employments, occupational pensions, pay, tax and student loan deductions.
- Tax code, including allowances and deductions.
- Taxable benefits.
- Information on underpaid tax.
- State Retirement Pension income.
- If anything does not look right, the client can speak to their employer/pension provider/DWP or you can call the Agent Dedicated line.
Trust Registration Service: additional questions for taxable trusts
Trustees or their agents must confirm whether the trust is a Schedule 3a trust (an express trust exempt from registration) for Anti-Money Laundering purposes. A new question to this effect has been added to the Trust Registration Service.
YouTube support for new paper VAT registration applications
There are VAT registration YouTube videos now available on how to complete and how to avoid errors on the VAT 1 form for VAT registration since its update.
Agent Talking Points
Updates on these popular webinars are regularly sent to agents on Monday Mornings.
Support for customers who need extra help
Following the principles of support for customers who need extra support, you can find out how to get extra if here.
Tax agent toolkits
HMRC have many tax agent toolkits available for you to download and use designed to address the most common errors seen from previous years.
Contact
Complain about HMRC: To make a complaint to HMRC on behalf of your client you must be appointed as their tax advisor.
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 also a dedicated service for tax agents to:
- Register you as an agent to use HMRC Online Services.
- Process an application for authority to act on behalf of a client.
Manuals
Check the latest updates to HMRC manuals or subscribe to the automatic notification of changes.
Online
Online training material and useful resources for tax agents and advisers
HMRC Publications
Agent Online Forum (AOF)
- The agent forum enables agents to raise general queries about HMRC systems or processes impacting day-to-day practice, including matters escalated by the Issues Overview Group.
- Agents can join the agent forum by registering and providing their professional body membership reference.
External link
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