Agent Update 63: Latest news for tax agents from HMRC

HMRC has published its latest bi-monthly round up of developments in tax. In Agent Update 63 it highlights the top articles as: 

  • Autumn Budget 2017 announcements, see the Tax Faculty summary
  • Fulfilment house due diligence scheme which will open for online applications on 1 April 2018
  • Annual tax on enveloped dwellings (ATED) 2018/19 returns. The old online forms will be withdrawn on 31 March 2018 and the ATED digital service will need to be used to file 2018/19 returns. 

Other articles of interest include: 

Compliance updates

There are several updates on compliance issues: 

Termination payments and sporting testimonials: changes to the income tax and Class 1 NIC treatment of such payments will apply from 6 April 2018. The Class 1A employer NIC charge will start from April 2019. 

Bank and building society interest: HMRC has started to use interest information from banks and building societies in tax codes and PAYE calculations, see the Tax Faculty news item

Marriage allowance: claims to marriage allowance on behalf of deceased partners can now be made and backdated by up to four years. 

Coding out of self assessment liabilities: a reminder that a self assessment liability can be collected through a 2018/19 PAYE tax code if all the following conditions apply: 

  • the tax due is less than £3,000,
  • there is a PAYE record, and
  • the 2016-17 paper tax return was submitted by 31 October 2017 or online by 30 December 2017 (not the usual 31 January 2018 deadline for online filing). 

Submitting self assessment tax returns: there must be an active self assessment account for a taxpayer before a tax return is submitted to HMRC; where there is an existing inactive UTR it is necessary to re-register before filing. If this step is not followed HMRC is likely to also issue a P800 tax calculation. See the Tax Faculty news item. 

Working Together

Working Together now operates through the HMRC agent forum and the activities of the Issues Overview Group. Members are encouraged to join and participate in the agent forum. A recording of a Talking Points webinar about the forum is now available. 

The Working Together section of the update also includes useful information on the Agent Services Account, agent access to the Trust Registration Service and pre-population of client data (employments, income, tax, benefits, Class 2 NICs and Marriage Allowance) in commercial self assessment software.