Agent Update 64: news on tax-free childcare, PAYE code changes and student loans

The latest bi-monthly round up of developments in tax from HMRC has been issued.

In Agent Update 64 HMRC highlights the top articles as:

Other articles of interest include:

Compliance updates

Compliance issues feature heavily in the update including (as well as those mentioned above):

Corporation tax

Articles include:

  • Notifying HMRC when a company becomes active
  • Payments: a reminder that legislation requires payments of corporation tax to be made electronically. HMRC is working on phasing out repayments by payable order but this option remains available for now
  • Reform of corporation loss tax relief from 1 April 2017: HMRC is consulting on draft technical guidance
  • Strike off, dissolution and restoration of companies from Companies House register

Income tax

Articles include:

  • Making full use of the apprenticeship levy
  • Earlier Year Updates for tax equalised employees in modified PAYE and National Insurance agreements
  • Dynamic coding will be paused for the period from 6 January 2018 to 5 April 2018; HMRC will instead adjust tax codes for changes in circumstances with effect from 6 April 2018
  • Increases in the National Minimum and National Living Wage on 1 April 2018
  • New mandatory box for student loan plan types on employer FPS submissions from April 2018
  • New rules for termination payments made on or after 6 April 2018 affecting payments in lieu of notice and foreign service relief
  • Scottish income tax changes
  • Simplifying PAYE settlement agreements from April 2018: the requirement to renew PSAs annually is to be removed
  • Automatic enrolment: From April 2018 the minimum pensions contributions for employers and their staff will increase from 2% to 5% and then to 8% in April 2019

Other taxes:

  • Annual Tax on Enveloped Dwellings returns for 2018-19 will need to be filed using the digital service from 1 April 2018. The old-style online forms will be withdrawn on 31 March 2018
  • Digitalisation of the VAT Retail Export Scheme
  • Tax free childcare is now open to all eligible parents. Parents can still join an Employer Supported Childcare scheme providing they receive a childcare voucher before 5 April 2018. Parents who want to continue using childcare vouchers after April 2018 will be able to while their current employer continues to offer the voucher scheme.

Working Together

Working Together is now 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 Agents Services Account, cybersecurity and pre-population of client data (employments, income, tax, benefits, Class 2 NICs and marriage allowance) in commercial self assessment software.