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