HMRC has issued Agent Update 60, the latest bi-monthly round up of developments in tax.
The most relevant articles for agents are tucked away on pages 12 and 13 and include:
Other articles of interest include:
A reminder that HMRC identifies Scottish taxpayers from the address held on their systems which makes it particularly important that address details are updated when taxpayers move to or from Scotland.
Only those who are UK resident can be Scottish taxpayers. Non-residents who have a source of income that could be subject to Scottish rates and bands will need to use a non-Scottish address to avoid being incorrectly identified as a Scottish taxpayer.
Dynamic PAYE coding
HMRC has previously announced that it will be making more use of RTI data to update tax codes. The start date for this change has been delayed from the end of May 2017 to the beginning of July 2017.
The impact will be more tax code changes and fewer over and under payments arising after the end of the tax year. Some taxpayers will have underpayments collected more quickly than under the present system; those who experience hardship should contact HMRC to discuss the possibility of spreading collection of the underpayment. At this stage HMRC will use RTI data only where there is a change which triggers a review of a taxpayer’s codes – changes in income levels such as a bonus payment do not trigger a review of codes.
The Working Together section of the update includes details of the next and final meeting on Wednesday 26 July 2017 and the current open issues. ICAEW members who would like to join this Working Together meeting or the HMRC Agent Forum should contact firstname.lastname@example.org.
The HMRC Agent Forum is expected to be fully rolled out on its new platform after this meeting – even though this is the final Working Together meeting agents should consider joining to find out more about the Agent Forum which will become the route for agents to raise (and hear about) widespread issues.
The Issues Overview Group which has representatives from the main professional bodies will continue to monitor the issues being raised on the HMRC Agent Forum and press HMRC to take appropriate action.
Collective Investment Schemes Centre customer service – The Collective Investment Schemes Centre has announced the introduction of a new system for submitting applications to join the Reporting Fund Regime and for providing Annual Reports – further details are available in the update.
Your views on Agent Update
Finally, HMRC is still seeking comments on the design, purpose and content of Agent Update and would welcome comments from readers – send them to email@example.com by 14 July 2017.