Agent Update: issue 94 – GOV.UK

This month’s content

Technical updates and reminders

Developments and changes to legislation and allowances relating to UK tax including:

COVID 19

Self Assessment

Tax

Making Tax Digital

HMRC Agent Services

Details of live consultations and links to responses, changes to HMRC service and guidance, including:

Agent forum and engagement

Latest updates from the partnership between HMRC and the main agent representative bodies, including:

Technical Updates and Reminders

COVID-19

Find updated guidance for employers, businesses and employees on GOV.UK.

Final claims for the Statutory Sick Pay Rebate Scheme

The Statutory Sick Pay Rebate Scheme will close on 17 March 2022. You have until 24 March 2022 to submit any new claims for your clients for absence periods up to 17 March 2022, or to amend claims you have already submitted.

Your clients will no longer be able to claim back Statutory Sick Pay (SSP) for their employees’ coronavirus-related absences or self-isolation that occur after 17 March 2022.

From 25 March, we will return to the normal SSP rules, which means employers can revert to paying SSP from the fourth qualifying day their employee is off work regardless of the reason for their sickness absence.

More information on SSP rules and how to make your final claims is available on GOV.UK.

Employees’ home-office expenses — end of temporary easement

As UK government restrictions are lifted, working from home is no longer a legal requirement. On 5 April 2022, the following temporary easement put in place during the COVID-19 pandemic will end.

This easement allowed Income Tax exemption and accompanying National Insurance contributions disregard for coronavirus related home-office expenses (where costs are reimbursed by the employer).

Extended Loss Carry Back

The Extended Loss Carry Back easement allows companies to make claims to carry back losses of accounting periods ending between 1 April 2020 and 31 March 2022 by a further 2 years.

Claims that exceed the £200,000 de minimis must be made in a Company Tax Return. Your clients should complete Box 45 on the CT600 and include details of the carry back claims in the computations accompanying the CT600 and accounts.

Your clients do not need to submit amended returns for the periods the extended relief applies to as the claims will be treated as amendments to those returns.

Use our online form for claims below £200,000.

Overpaid Self-Employment Income Support Scheme (SEISS) grants

If a customer’s tax return for any of the years 2016 to 2017 to 2019 to 2020 is amended after 3 March 2021 and they’re no longer entitled to the amount they originally claimed for either their fourth or fifth (or both) SEISS grant, they must repay the amount they were overpaid by HMRC.

We’re writing to customers whose entitlement to those grants has been reduced by more than £100, asking them to repay the overpaid amount. If a customer has been overpaid on their fifth SEISS grant, we’ll also compare the reference year (2018 to 2019 or 2019 to 2020) turnover figure they entered when claiming this, with the declared turnover figure on their latest tax return. If the figures don’t match and this means they received an 80% grant when they should have received a 30% grant, the difference will be included in the total overpaid amount they will be asked to repay in the letter.

Will I be able to act on behalf of my client?

Yes, you will be able to contact us about your client’s case and repay any overpaid amount if you have the relevant form 64-8 authorisation to act on their behalf.

What if my client cannot pay straight away?

If your client is unable to pay in full, they may be able to set up a Time to Pay arrangement by contacting us on 0300 322 9497. They’ll need to have details of their income and what they normally spend so we can make sure any payment plan is affordable.

Can my client appeal the Assessment?

We calculate your client’s grant based on information from their amended tax return. If they disagree with the figures provided, they can appeal. To do this they need to write to us within 30 days of the date of our Assessment, telling us why they think our decision was wrong.

Will my client receive penalties if they do not pay?

When we write to your client this will include the date by which the repayment must be made. A late payment penalty of 5% of the unpaid tax will be applied if the payment is over 30 days late. There will be further penalties applied after 6 and 12 months if any amount remains outstanding. Your client will also have to pay late payment interest on any amounts still unpaid after 31 January 2023. If your client has a Time to Pay arrangement in place before the deadline, late payment penalties will not be charged.

How can my client pay?

They can find everything they need online. Your client will need to use the payment reference starting with X on the letter they receive from us. You can find more information on paying taxes, penalties or enquiry settlements.

Where can I find more information?

Please look at our guidance on repaying overpaid SEISS grants — we’ll also keep you updated in future issues of the Agent Update.

Reminder to declare coronavirus grants on Company tax returns

Coronavirus grants and payments issued by HMRC to support businesses and self-employed individuals during the pandemic are taxable.

If your client needs to complete a Company Tax Return (CT600) and has claimed any of the following – Coronavirus Job Retention Scheme (CJRS) grants, Eat Out to Help Out (EOHO) payments or any coronavirus support payments made by local authorities, devolved administrations or other public authorities, they’ll need to include them as income when calculating their taxable profits in the usual way.

If you’re completing a Company Tax Return on your client’s behalf, check what coronavirus support payments they received. This is particularly important if another agent made a CJRS claim on their behalf, or they claimed a grant themselves.

If your client received either a CJRS grant or an EOHO payment (or both), they will also need to be included in the specific boxes provided on the CT600.

You should:

• put taxable grants and payments in boxes 471, 472 and 647
• put CJRS or EOHO overpayments in boxes 473, 474 and 526

These boxes were added to the CT600 on 6 April 2021. If your client received a CJRS grant or EOHO payment without completing the relevant boxes, your client’s return may need to be amended.

If your client has already filed their Company Tax Return, they will only need to submit an amended return if:

• they did not declare all of their coronavirus support payments as taxable income, or
• they filed before 6 April 2021 (or after that date but did not fill in the relevant boxes) and did not include either all their grants as taxable income or have a CJRS or EOHO overpayment to declare (or both) — this is explained in more detail in the Company Tax Return guide

For more information on which grants to report, how to report them, and what happens if your client has claimed too much, you and your clients can attend a webinar or watch this video about how to report COVID-19 taxable grants and payments.

Tax on UK income if you live abroad — easement ends on 5 April 2022

In 2020, we introduced guidance for non-UK resident employees stuck in the UK because of coronavirus travel restrictions. This stated that those employees would not be taxed on earnings for duties performed in the UK after their planned departure date, provided they were taxed in their home state.

This easement will end on 5 April 2022.

If your client is non-UK resident, any days they spend working in the UK from 6 April onwards will be treated as days on which they performed duties in the UK.

Find out more information about Tax on your UK income if you live abroad.

Cycle to work

Due to the impact of the coronavirus pandemic, in December 2020, the UK government announced a time-limited easement. This was for employees who had joined an employer-provided cycling scheme and received a cycle or cycling safety equipment on or before 20 December 2020. Employees who joined a scheme from 21 December 2020 would need to meet all the normal conditions of the Cycle to Work scheme.

Where eligible, employees would not have to meet the ’qualifying journeys’ condition until after 5 April 2022.

The rules of the scheme have not changed. From 5 April 2022, all employees on an existing cycling scheme will need to meet the normal conditions, including the ’qualifying journeys’ condition.

More support on COVID-19 schemes

You and your clients can sign up to receive regular email updates from HMRC, to keep up to date with the latest information on our COVID-19 schemes. You can simply register and add the subscription topics you’re interested in.

Many agents have also benefitted from our webinars which offer information on the CJRS, other government support and how it applies to your clients.

Self Assessment

Self Assessment tax returns for 2021 to 2022 tax year

Clients will receive Self Assessment paper returns for 2021 to 2022 in the post by the end of April 2022. Clients who file online will receive a notice to complete tax return letter (SA316) between 6 April and the end of May. This year, we’ll send 2.3 million digital notices to those who’ve chosen to go paperless with Self Assessment.

Self Assessment paper returns must be filed by 31 October 2022, and online Self Assessment returns need to be filed by 31 January 2023. Customers can access much of the tax information they need online through their Personal Tax Account.

Customers who submit a paper Self Assessment return by 31 October 2022, or online by 30 December 2022, can elect to pay any tax they owe (a balancing payment) though their PAYE tax code if they have one. We’ll try to include their balancing payment in their PAYE tax code as long as:

• they owe less than £3,000 on their tax bill
• they already pay sufficient tax through PAYE

As most agents now file online, why not look into Self Assessment for Agents: HMRC Online Services which explains the help and support you receive once you register for our online services.

Tax

Notification of Uncertain Tax Treatments by large businesses

The notification of Uncertain Tax Treatment measure is taking effect from 1 April 2022.

The measure, which affects large businesses, is designed to reduce the legal interpretation portion of the tax gap, by helping HMRC identify more legal interpretation issues at an earlier stage.

We’ve provided guidance on how we propose to interpret and apply the legislation and help businesses comply with the new requirements. This technical guidance is now available online.

In early March, we contacted customers directly to provide a link to the final published version of the guidance, and to invite them to attend a live webinar.

Once the measure has taken effect, we’ll monitor how it is working in practice, making sure customers have appropriate support.

We’ll also continue to seek input from stakeholders. This includes as part of a working group established to identify and prioritise issues across tax technical guidance, that require updating to enable businesses to accurately identify when a transaction is uncertain.

VAT reverse charge on construction and building services

This reverse charge came in on 1 March 2021. A Revenue and Customs Brief issued in June 2020 contains more information.

Letters were sent to every VAT-registered construction business in February 2020, September 2020 and January 2021. These letters advised those businesses to check if they’re liable for the reverse charge. If they’re liable, they need to apply these rules going forward.

Find more information on the scope and operation of the reverse charge.

The key aspects are:

• it applies to standard and reduced-rated supplies of building and construction services made to VAT and Construction Industry Scheme (CIS) registered businesses, who in turn also make onward supplies of those building and construction services
• the contractor is responsible for paying the output VAT due rather than the sub-contractor, and can continue to reclaim this amount as input tax
• the scope of supplies affected is closely aligned to the supplies required to be reported under the CIS, but does not include supplies of staff or workers for use by the customer
• supplies to CIS registered businesses can be excluded from the reverse charge if the customer is an ‘end user’ or ‘intermediary supplier’ (a business that is closely associated with an end user). This exclusion covers property developers and other ‘deemed contractors’ provided that the construction services concerned are not being re-supplied by them. However, this exclusion is optional and only applies if the customer notifies their supplier in writing that they are an ‘end user’ or ‘intermediary supplier’. This can be done by correspondence or as part of terms and conditions. There is more detail in the technical guidance.

We’ve been running webinars for businesses and they can register now. If there are no dates available, a webinar recording can be viewed.

Find more information about the Construction Industry Scheme.

Changes to the Construction Industry Scheme (CIS)

In order for your clients to claim Construction Industry Scheme (CIS) deductions as a subcontractor on an Employer Payment Summary (EPS), their business must be a limited company operating within the construction industry.

From April 2022, we’re introducing an additional field on the EPS. Your clients must use this to enter their Corporation Tax Unique Taxpayer Reference (UTR) or COTAX reference number, to claim credit for these deductions.

We’ll reject any EPS submissions which include a claim for CIS deductions, but do not include the Corporation Tax UTR. Clients who cannot satisfy the new Corporation Tax UTR validation but need to report anything else, will have to remove the claim for CIS deductions, and resubmit the EPS.

Clients who cannot find or have lost their Corporation Tax UTR, can request their Corporation Tax UTR online. We’ll send it to the business address registered with Companies House.

If your client’s company is not a limited company and so does not have a Corporation Tax UTR, they should not claim these deductions on the EPS. Instead, they should report the deductions on a Self Assessment Tax Return.

Corporate Interest Restriction — mandation of electronic filing

Corporate Interest Restriction (CIR) legislation applies to corporate entities and aims to restrict a group’s deductions for interest expense and other financing costs for Corporation Tax purposes, to an amount that is commensurate with taxed UK activities, taking account of how much the group borrows from third parties such as banks and other finance options. More information can be found on GOV.UK:

In 2018, HMRC introduced an online submission form (‘the G-form’), and from July 2021, an Application Programming Interface (API) for submitting Interest Restriction Returns (IRRs) and for making reporting company appointments and revocations. The G-form can be accessed via the links above, and the APIs can be found on the HMRC Software Developers Hub.

HMRC intends to mandate that all reporting company appointments or revocations and IRRs must be submitted using either the G-form or the API. This is expected to have effect for all submissions on or after 1 September 2022. This means that after that date, HMRC will not accept appointments or revocations and IRRs that are sent by email, post or attached to company tax returns.

HMRC will publish a copy of the draft Statutory Instrument shortly, to allow time for a period of consultation.

New tax regime for qualifying asset holding companies

Finance Act 2022 introduces a new regime for the taxation of qualifying asset holding companies (QAHCs) and certain payments they make. A qualifying asset holding company must be at least 70% owned by diversely owned funds, or certain institutional investors, and mainly carry out investment activity.

Companies that meet the criteria and wish to join the QAHC regime must send an entry notification to HMRC in advance of the joining date. Find more information about qualifying asset holding companies.

Companies must use HMRC’s newly developed online form to make an entry notification:

QAHC — Make an entry notification

Full guidance is available in the Investment Funds Manual at IFM40000 plus.

Extension to Capital Allowances: Self-Assessment changes for zero-emission car allowance

In Agent Update 83 we told you about extension of first year allowances. This came into effect in April 2021 and includes business cars and the CO2 emission threshold changes as well as lease rental restriction changes.

For business cars, we’ve changed the capital allowances section of the following Tax Return forms to include a new ‘zero-emission car allowance’ field:

• Individual
• Partnership
• Trust and Estate
• Trustee Registered Pension Scheme

This means that from 6 April 2022, and for Tax Return 2021 to 2022 onwards, customers can use this new field to claim this 100% first-year allowance (for any qualifying expenditure incurred in relation to the purchase of new and unused zero-emission or electric cars).

If a business car is also used outside of the business, the claim must be reduced in proportion to the non-business use.

Find more information on business cars and emission threshold rates.

The Official Rate of Interest (ORI) for the 2022 to 2023 tax year

The Official Rate of Interest (ORI), which is used to calculate the Income Tax charge on the benefit of employment related loans and the taxable benefit of some employer-provided living accommodation, will remain at 2%.

In March 2022 HMRC announced that the ORI will remain at 2% for the 2022 to 2023 tax year.

How will this affect you? If employment related loans or living accommodation are provided by your clients to their employees, you will need to know the correct interest to apply when you calculate the value of any benefit for 2022 to 2023.

Statutory reviews

In Agent Update 75, we explained what you can expect from a statutory review.

Both the Office of Tax Simplification and the House of Lords have said our review function provides a valuable service to customers. Building on that endorsement, this article explains the benefits of statutory reviews compared to appealing direct to the Tribunal.

Who carries out a review?

There is a different process for indirect tax (for example VAT, excise or customs duty), and direct tax (for example corporation tax or income tax). However, in all cases, once an appealable decision is made, the HMRC caseworker will explain what your client needs to do if they disagree with the decision.

One option is to appeal to the Tribunal, but a quicker, more cost-effective way to resolve the dispute is a statutory review.

HMRC’s Solicitor’s Office and Legal Services (SOLS) carry out statutory reviews. They are conducted by officers who are entirely outside the management chain of those making the disputed decisions.

If your client does not agree with the outcome of a statutory review, they can still take their appeal to the Tribunal. Their statutory rights are unaffected.

Outcomes of a review

At the end of the review, the review officer will conclude if the decision is:

• upheld — that is, the disputed decision should stand
• varied — that is, the decision is changed in some way
• cancelled — that is, the decision is not appropriate

The benefits of a statutory review

Reviews are an opportunity to take a fresh look at disputed decisions.

In 2020 to 21, SOLS carried out 10,026 reviews. Of these 6,551 decisions were cancelled or varied as a result of the review. 5,754 of the varied or cancelled decisions related to disputes such as automatic late filing and default surcharge penalties, where reasonable excuse was a consideration at review.

COVID-19 impacted on compliance activity and the number of reviews undertaken in 2020 to 2021, but in 2019 to 2020, there was a similar picture in terms of the percentage of cancelled or varied decisions.

In 2019 to 2020 SOLS carried out 22,649 reviews. 12,822 decisions were cancelled or varied as a result of a review. Of these, 9,992 related to automatic late filing and default surcharge penalties, where reasonable excuse was a consideration at review.

Following a review, the majority of cases do not proceed to Tribunal.

The reviews process is rigorous; most conclusions are counter-signed by an officer of a senior grade to the review officer. They are also a quick, easy and cost-effective way to settle a dispute. The statutory time limit for reviews is 45 days (or a longer agreed time period). Conversely, having the Tribunal determine an appeal is time-consuming.

As 75% of reviews don’t go on to appeal, and costs are generally higher for appeals in time and money, it is often more cost effective to initially request a review.

Purpose of a review

The review looks at the decision again, not to assess new facts or evidence that have not been considered by the caseworker. However, the review officer will give your client the opportunity to send in further information during the review period.

The review officer will then decide if the appealable decision is:

• legally and technically correct
• consistent with HMRC’s policy
• consistent with HMRC’s Litigation and Settlement Strategy

Some disputes involving a direct challenge on HMRC’s interpretation of legislation may need to be determined by the courts, since a review officer cannot override HMRC policy. However, even in these cases a review can often help clarify facts and both parties understanding of the dispute.

The review conclusion letter

Whatever the outcome of the review, the review officer will write to your client. Their letter will explain:

• their conclusion
• their reasons
• your client’s next options

If the decision is upheld or varied, and your client disagrees with the review officer’s conclusion, then they will have 30 days from the date of the review conclusion letter to appeal to the Tribunal.

How you can help the review officer

To help this process operate smoothly, it is important that either you or your client (or both) clearly explain to the review officer what your client disagrees with and why. Did they rely on any case law or other evidence to form that view? Do they have any further information to provide to the review officer to support their case? Conversely, it is also useful to know what they agree with, as this will help focus the review to the key points in dispute.

More information

More information can be found in the Appeals reviews and tribunal guidance manual.

Summary

• the statutory reviews process is a fresh look at disputed decisions
• requesting a statutory review costs nothing and it can be a cost-effective way to resolve a dispute
• the reviews process can avoid unnecessary litigation, cost and stress
• in requesting a statutory review, your client’s statutory rights are unaffected — they can still take their appeal to Tribunal if they are unhappy with the review officer’s conclusion

Scottish Student Loans Plan 4 ― Self Assessment

As mentioned in Agent Update 93, Plan 4 for Scottish Student Loan borrowers will be included on Self-Assessment tax returns from 6 April 2022.

Agents completing a Self-Assessment tax return on behalf of their client should include Plan 4 deductions in their 2021 to 2022 return.

Guidance will be updated with these changes.

More information

Telling HMRC about Student or Postgraduate Loan deductions

Making Tax Digital

Making Tax Digital (MTD) update

MTD for VAT is coming to all VAT registered businesses

From April 2022, all VAT-registered businesses, regardless of taxable turnover, will be required to follow Making Tax Digital (MTD) rules.

This means using MTD-compatible software to keep digital records and submitting VAT returns through MTD.

Businesses should start keeping digital records for their first VAT return period, starting on or after 1 April 2022, and sign up to MTD at least 72 hours before their first return is due.

All VAT businesses must now take steps to switch to MTD if they have not done so already. We’re writing to all businesses who have not yet signed up to remind them of the actions they need to take.

Our step-by-step guide for agents will help you get your clients ready.

Your clients can also access more support on MTD .

Manage your Tax Agent link to be added to the Personal Tax Account (PTA)

Your clients will soon be able to manage their tax agents directly through their PTA. We’ll be adding links in spring this year to PTAs, which will include accepting an authorisation request to allow an agent to represent them and removing a tax agent they no longer want to act on their behalf in Making Tax Digital and legacy services.

Changes to VAT Registration Service (VRS) — agents registering their clients for VAT

In Agent Update issues 90 and 91, we told you about changes to the VAT Registration Service (VRS) and how this will affect the agent community. We’ll continue to update you with progress until the extended agent functionality goes live in spring 2022.

We will continue to test the new service before we switch off the existing service and move to all registrations coming through VRS.

Please make sure you finalise any registrations in the current service before the switchover, so you do not lose any information from open applications. We’ll communicate a date for the switchover in due course.

VAT 1 forms

We published an updated version of the VAT1 Form, register for VAT by post for manual registrations in November 2020.

Please make sure you use this version of the form VAT1. We’ll soon stop accepting the previous version and any registrations using the old form won’t be processed.

You may have a link on your desktop or browser favourites to the old edition, so please check and update the link if needed.

HMRC Agent Services

Agent Talking Points

All agents will be aware of our popular Agent Talking Points webinars, for which most agents receive regular Monday morning updates.

Support for customers who need extra help

We have principles of support for customers who need extra help. These set out our commitment to support customers according to their needs, and underpin the HMRC Charter.

Find out how to get help and what extra support is available.

Our progress on equality in 2020 to 2021

We are committed to making HMRC a trusted, modern organisation, with a workforce which better reflects the diversity of the society it serves.

Our public sector equality duty report for 2020 to 2021 has been published on GOV.UK. It looks at customer and colleague focused activity and the progress we’re making against our equality objectives.

Anti-money laundering supervision detailed guidance

Did you know, our anti-money laundering guidance for businesses is available on GOV.UK?

Businesses need to be registered with a supervisory authority if Money Laundering Regulations apply, so it is important to check who needs to register under the regulations. You can also register, renew and manage your anti-money laundering account.

Fees and how to pay

When registering for anti-money laundering supervision, businesses must pay a registration fee for each premises. They must also pay either a fit and proper test fee or approval process fee, depending on the business type.

Towards the end of a business’s registration year, we’ll send an email telling businesses to log in to their account to refresh their registration. The renewal fee amount will depend on how many premises are shown on the application at the time of renewal. Anti-money laundering fees are fully explained in gov.uk.

The online service will work out how much a business owes and lets them pay the total amount due for each type of fee. When applications or renewals are submitted, there is a payment reference of 12 digits and 2 letters starting with ‘X’. Businesses without a payment reference number can request one before making a payment by emailing: MLRCIT@hmrc.gov.uk.

Find out how to pay fees.

Risk Assessments

Business supervised under by the Money Laundering Regulations must assess the risk that they could be used for money laundering and terrorist financing. They must also be aware of their day-to-day responsibilities.

Nominated officer, training staff and recognising suspicious activity

Businesses regulated by the Money Laundering Regulations must appoint what is known as a nominated officer, this must be someone in the business.

Businesses must also make sure employees are aware of their money laundering procedures, in particular, employees who deal with customers, including receptionists. To comply with the regulations, regular training should be given, including how to recognise suspicious transactions and what to do if they identify them.
Businesses must have anti money laundering policies, controls and procedures written down and all relevant staff should understand how these affect them.

How and when to report suspicious activity

Businesses must tell HMRC about suspicious activity that may be linked to money laundering. There are many reasons why businesses and employees might become suspicious about a transaction or activity, often it’s just because it’s something unfamiliar.

Nominated officers can send online reports using the National Crime Agency website.

Changes to money laundering registration or deregistering

HMRC may contact businesses to arrange a check to look at how anti-money laundering policies and procedures are being operated and to help make sure the right systems are in place.

Businesses may disagree with a HMRC decision, ask for a review, or appeal to a tribunal. Our guidance on disagreeing a decision also covers civil penalties and criminal offences under the Money Laundering Regulations.

As a supervisor of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, HMRC has a duty to publish details of businesses that do not comply with the regulations.

Help and support for money laundering supervision

Recorded webinars will explain more about money laundering supervision across all sectors. These, as well as access learning guides on Money Service Businesses and Estate Agency Businesses can be found on our dedicated help and support page.

More guidance on anti money laundering supervision is available from the The Consultative Committee of Accountancy Bodies (CAAB) website.

Creative Industry Tax Reliefs: New online tool to support claims

HMRC has launched an online form to assist claims to Creative Industry Tax Reliefs.

The form checks whether a company meets the basic requirements for relief. It prompts the respondent to produce the evidence required to support a claim. Although not mandatory, it will speed up the processing of claims and can be completed by the company or their agent.

Reporting expenses and benefits for tax year ending 5 April 2022

For those employers payrolling Benefits in Kind

The deadline for reporting any P11D Expenses and Benefits in Kind is 6 July 2022.

Your clients need to do this for each employee they have provided with expenses or benefits.

How to report

Please note, HMRC considers paper submissions to be generally unacceptable. We are maintaining a paper process for those who cannot yet file online and have not yet moved to Payrolling.

You can use either of the following quick and easy digital methods:

Online filing is quicker and easier. It’s also more secure and the software can tell you immediately if you have made any common errors.

If your client is unable to use either of the digital methods, they can continue to use our official forms P11D and P11D(b). If your clients report is late, their employees could pay the wrong amount tax and experience financial hardship.

Helping you to get it right first time

If your client makes a mistake or sends in their form late, their employees could pay the wrong amount of tax and they could end up with a penalty, so it’s important that they get it right.

Your client needs to submit a P11D(b) form if:

• your client has submitted any P11D forms
• your client has paid any employees’ expenses or benefits through their payroll
• HMRC has asked your client to file a P11D(b) — either by sending them a P11D(b) form or an email notification to file a P11D(b)

Your clients P11D(b) tells HMRC how much employers’ Class 1A National Insurance contributions they need to pay on all the expenses and benefits they have provided to their employees through their payroll as well as any they have reported to HMRC on a P11D.

Nothing to declare

If HMRC has asked your client to submit a P11D(b) and they have nothing to declare, you can tell us they do not owe any employers’ Class 1A National Insurance contributions by completing a declaration ‘No return of Class 1A National Insurance contributions’. Only use this declaration if HMRC has asked your client to submit a P11D(b) and they have nothing to declare.

P11D lists

In exceptional circumstances where your client must file P11Ds on paper and do so in list form they must use the following format:

• use Arial font size 11 or larger (when printed)
• sort it by employee, not benefit type
• include your clients employer reference
• include the employee’s correct name and National Insurance Number (NINO).
• put each employee’s expenses and benefits on the same line — we cannot accept separate lists for each benefit for example
• include the letter codes from the P11D next to each benefit — these are shown in the dark blue boxes to the left of each section on the P11D
• it’s important to note that if you do not provide the information in the correct format the list may be returned to you — if it’s returned late, you client may receive a penalty

Paying your Class 1A National Insurance contributions

There is a specific reference your client must use to make their Class 1A payment. This is their normal Accounts Office reference plus the numerals 2113 at the end. Please do not leave a space between any of the numbers. This is an example of the correct format, but please use your clients own reference number: 123PA001234562113.

If your clients are paying at a bank or sending a cheque, they must use the correct payment slip, it’s pre-printed with the reference in the format above. If they do not use the right payslip or if they use an incorrect reference, we will not know they have paid their Class 1A charge and may send payment reminders and default notices until their payment is allocated correctly. More information on how to pay.

Working Sheets

Use the working sheets available on how to complete your P11D and P11D(b) to help you reduce errors.

Do not send HMRC your working sheets.

Decommission of HMRC’s Online End of Year Expenses and Benefits Service April 2022.

New form for P87 claims

We’re introducing new regulations about the P87 form with effect from 6 May.

From that date, all P87 based information must be made in a standard prescribed format. We will reject any claims we receive after 6 May which aren’t in the standard format.

We’re doing this so we can start automating the processing of P87 forms, which will help us to process any repayments and coding adjustments more quickly. We currently receive a wide variety of forms from agents but for automation to work, all forms need to be the same so our systems can scan them and know what to look for.

We’re also taking this opportunity to update the P87 standard form to incorporate multiple years. We’re doing this because you told us this works best for repayment agents and the new standard form will be available on GOV.UK soon.

The new HMRC P87 form will contain a nomination. This is the quickest way we can process claims and make payments to the nominated payee. Assignments will continue to be processed but need significant manual intervention and take longer. The quickest way to get any repayment due is to use the nomination within the form.

Consultations

Check the status of tax policy consultations duplicated

Find out about ongoing and closed tax policy consultations.

Check the status of tax policy consultations ODS, 15.4KB

This file is in an OpenDocument format.

Tax Agent Toolkits

HMRC have 19 agent toolkits available for you to download and use. They have been designed to address the most common errors seen from previous years. They include checklists of the key issues to consider and links to HMRC technical guidance and manuals.

The complete catalogue of toolkits can assist you with completion of:

By identifying the most common errors this may prompt a conversation between you and your clients to make sure submissions are correct.

Tax Disputes

If your client is in dispute with HMRC over an appealable tax decision, you may be interested in our Alternative Dispute Resolution (ADR) service.

This service involves an impartial HMRC mediator working with all parties to prevent unnecessary litigation.

We hope to resolve tax disputes within 120 days using a collaborative and flexible approach, which does not affect your client’s right to appeal or review.

For more information please visit the Alternative Dispute Resolution page.

Agent Blog

Did you know there is a regular Tax agent blog, highlighting the work HMRC do with tax agents, advisers and professional bodies?

We cover agent specific news and updates, consultations and HMRC’s agent strategy to name but a few.

You can subscribe to receive a notification when a new blog is posted.

Complain to HMRC

To make a complaint to HMRC on behalf of your client you must be appointed as their Tax Advisor.

Employers need to register for email alerts

As the department moves rapidly down the digital road, it is becoming more apparent that the days of paper mailings are numbered.

It is important agents encourage employers to register to receive email alerts, so, they are aware of the latest coding changes and important information that is published on the Government webpages.

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

You can check the latest updates to HMRC manuals or subscribe to automatic notification of changes. You can also suggest improvements for pages of our manuals by using the feedback options in the page footer.

Residence, Domicile and Remittance Basis Manual (RDRM) and deemed domicile

The domicile chapter within the RDRM has now been updated to include the changes applicable from the introduction of deemed domicile. For more information, see the Residence, Domicile and Remittance Basis Manual.

Online

Trusts and Estates newsletters

HMRC regularly publishes a Trusts and Estates newsletter. It contains the latest news, updates and guidance on Inheritance Tax and trusts.

Future online services downtime

Information is available on any downtime that may affect the availability of HMRC’s online services. Please note this is subject to change and confirmation by HMRC’s IT provider.

Online security — stay safe online

HMRC continuously monitors systems and customer records to guard against fraudulent activity, providing regular updates on scams we are aware of. If you have any concerns regarding the authenticity of any emails received from HMRC, see the online security pages for agents.

Phishing emails and bogus contact: HMRC examples

A new type of phishing scam regarding ‘Tax Returns’, which is being circulated in high volumes, has been added.

Online training material and useful resources for tax agents and advisers

HMRC videos on YouTube, online learning modules, and live and pre-recorded webinars are available for tax agents and advisers providing you with free help, learning and support on topical subjects.

Publications

Spotlights

Check for new additions

Employer Bulletin

The latest edition of Employer Bulletin is now available and contains topical and useful information about PAYE processes and procedures. For employers to be informed when it is available on the website, they must first register to receive the email alerts.

National Insurance Services to Pensions Industry: countdown bulletins
Countdown Bulletin 53 has been added to this collection.

Pension schemes newsletter
This newsletter is published by HMRC’s Pension Schemes Services to update stakeholders on the latest news for pension schemes.

Revenue and Customs briefs

These are briefs announcing changes in policy or setting out the legal background to an issue. They generally have a short lifespan, as announced changes are incorporated into permanent guidance and the brief is then removed.

Agent forum and engagement

HMRC online Tax agent forum

The agent forum enables agents to raise general queries about HMRC systems or processes impacting day-to-day practice. Agents can report potential issues that could be widespread, affecting a number of taxpayers or agents. Answers or updates will not be provided on specific technical questions, client specific queries, ongoing complaints cases, compliance reviews, or appeals against HMRC decisions.

Registering for the agent forum

Agents can join the agent forum by registering and providing their professional body membership reference. Guides on how to register are available from professional bodies.

Providing evidence to support resolution of queries

Agents can use the forum to provide evidence to support an issue raised. In addition, agents may be requested to email the agent forum team with specific information to assist further investigation or resolution of a query. HMRC is grateful to agents who are currently providing additional information to aid the resolution of issues.

Issues Overview Group — agent forum updates

Professional bodies on the Issues Overview Group and Agent Support Group have identified the issues and items below for escalation. The latest updates on these issues are available on the Agent Forum Escalation Board.

SA-11680 — HMRC emails without a client reference — HMRC provided professional bodies with an update in February on work investigating whether client references can be included in Self Assessment emails. Work is continuing to identify options available. Firms using an agent login to register a client for self-assessment should be able to track a client reference. Agents should report examples where this is not happening on the agent forum.

SA -9471 SA services returning unexpected data — HMRC is reviewing a range of examples emailed to the agent forum team in seeking to understand queries raised by professional bodies and agents.

PAYE — 15511 PAYE Coding and interest issues on closed accounts — professional bodies met with HMRC subject matter experts to outline concerns and are providing evidence. Agents are requested to forward examples of potential issues by sending an email to: Agentforum.wt@HMRC.gov.uk.

UK Property Reporting Service — professional bodies have been working with HMRC on this service over recent months. A meeting of a subgroup of the Capital Taxes Liaison Group in April will continue this work.

Data availability on services using Application Programming Interfaces (APIs)

Several queries have arisen on the Agent Forum on the availability of data on services using Application Programming Interfaces (API). Data is only available for taxpayers who are registered for Self Assessment and had any employments in the given tax year. Also, data is only available once PAYE reconciliation has completed.

This is the process that determines whether the individual has paid the right amount of tax and, for PAYE-only taxpayers, results in a P800 in the event of overpayment or underpayment.

Reconciliation each year starts on or around 6 June and runs for around one million individuals per working night.

It is usually completed by the end of November. Unfortunately, it is not possible to know when reconciliation will be complete for a specific individual.

If HMRC are expecting a P11D, reconciliation will not start for that individual until this has been received and processed. If a P11D is received unexpectedly, HMRC will re-run the reconciliation.

Data is no longer available once we have received and processed the corresponding Self Assessment return.

Issues Overview Group contact information for professional and representative bodies

AAT

ACCA Jason Piper

AIA David Potts

ATT Technical

CIMA

CIOT Technical

CIPP Lora Murphy

CPAA Alison Hale

IAB

ICAEW Caroline Miskin

ICAS Tax Team

ICB Jacquie Mount

ICPA Tony Margaritelli

IFA John Edwards

VATPG Ruth Corkin

If you are not a member of a professional body, contact the Agent Engagement mailbox.