Member Since: 8th Sep 2008
6th May 2020
The ICAEW guidance has indeed been updated: https://www.icaew.com/insights/tax-news/2020/may-2020/new-government-gat.... The design of the system changed slightly and taxpayers are now prompted to create a government gateway ID in the eligibility checker, that is the sensible place to do so as avoids the PIN in the post. Existing government gateway IDs with access to self assessment should also work. The thing to avoid is setting up a new ID outside the SEISS process as that will mean a PIN in the post and delay.
11th Sep 2019
My understanding is that the sample size was half of the VAT population and that the additional declaration will now be presented to the other half of the population. As Rebecca points out, many of these traders will have moved to MTD in the meantime and so won't be presented with the declaration until such time as they are extended to commercial software.
28th Aug 2019
You can now change VAT quarters and the VAT certificate from here: https://www.gov.uk/guidance/update-your-clients-business-details-if-they...
Still not sure why HMRC is keeping this a secret and not making it available directly from the agent services account.
4th Jun 2019
My understanding of the change to the VAT notice, based on discussions with HMRC, is that the relaxation is a bit more limited and only applies where the statement shows a full VAT breakdown ie, even if all the supplies are standard rated you can't just back calculate the VAT?
The impossible, impractical or unduly onerous regulation allows HMRC to relax the requirements but I'm not sure that it allows a trader to adopt a shortcut not in the notice without agreement from HMRC?
Agree that it will be interesting to see how rigidly these requirements will be imposed in practice.
5th Mar 2018
https://www.gov.uk/government/news/on-time-self-assessment-returns-break... says 745, 588 returns unfiled at 31 Jan 2018, not 795k?
Do we have any news on the exclusions list for 2017/18? Exclusions will need to be a thing of the past for MTD - how are HMRC going to get to that position?
28th Sep 2017
A few points:
- authorised agents WILL receive a copy of the assessment (which is a PA302, not an SA302)
- the state pensioner group being taken out of self assessment is those whose ONLY source of income is state pension which happens to be above the personal allowance. Those who joined this group in 2016/17 will not be put into self assessment but will receive a simple assessment. Those who are currently in this group (about 27,000) will not be required to file self assessment returns for 2017/18 or subsequent years (not 2018/19, yes the HMRC guidance is unclear on this point)
- putting taxpayers into self assessment only because they have a P800 underpayment which cannot be coded and has not been paid voluntarily has been a nonsense and simple assessment puts an end to that
- the main sources of information which HMRC is using for these assessments are: data supplied by employers, pensions providers, the DWP. Some data on interest and dividends, mostly supplied by the taxpayer, and these figures do need to be checked carefully as they are often based on out of date historic information. HMRC intends to consult before using any other third party data or further expanding the use of simple assessment
- There has long been a problem with unrepresented taxpayers not understanding their obligation to notify. This is something which HMRC needs to work on but it is an old issue which also applies to P800 cases.
We need to watch what use is made of Simple Assessment in the future but at the moment it is only being used for cases which have no business being in SA.
24th Oct 2016
31 January is the date that Class 2 has to paid by to qualify the previous tax year for ESA (as well as being the deadline for SA payments). The issue is that those who need to claim ESA may struggle to make these payments by 31 Jan (business may have ceased). Under the old process they would have qualified as they would have paid their Class 2 as they went along.
21st Oct 2016
I agree that it is a process and training issue and not a problem with the legislation. As far as I am aware, the only process in place for allowing voluntary payment of Class 2 to ensure entitlement to MA is to make a claim for MA, DWP then contacts HMRC and if there is a shortfall HMRC contacts the taxpayer to give the opportunity to make voluntary contributions - a major runaround. I don't think HMRC has a process in place to allow for the Class 2 voluntary contributions to be made and to count as such without going through this hoop? There is also a training issue as not all HMRC staff appear to be aware of the process such as it is?
I am also concerned that there are going to be a lot of future claims to contributions based ESA which fail because the Class 2 has not been paid by the required date which I think is 31 January after the end of the relevant tax year?
ICAEW is seeking comments from members on Class 2/4 issues on https://ion.icaew.com/taxfaculty/b/weblog/posts/collecting-class-2-and-4...
17th Mar 2013
Starter Information/P46 and Permitted Work
There is a fundamental flaw in the P46 which has continued with the Starter Form. It does not allow for the situation where someone is claiming taxable Employment & Support Allowance/Incapacity Benefit and is working - as they can often be entitled to under the Permitted Work rules. Employee needs a code for employment which restricts the personal allowance for the amount of benefit but Box C and BR code would be better than the current situation where they automatically have a P800 underpayment once the year is reconciled if Benefit plus Employment income is more than PA.
Similar considerations apply where taxpayer is in receipt of ESA/IB and starts to receive an occupational pension.
Any chance of persuading HMRC to put a system in place that deals with these not unusual situations?
28th Aug 2012
Late Filing Penalties
Don't often have reason to defend HMRC but the communications have been many - £100 penalty notice, a letter warning daily penalties about to start, letters at the 30 and 60 day penalty points plus text message and voicemail campaigns.
The real story seems to be how few returns have been filed since January - there were 850k £100 penalties and 500k now so in theory 350k filed but... 273k of these are cases where a nil return has been captured because the individual should not have been in SA - so only about 77k actually filed.
Suggests to me that a significant proportion of the remainder are also cases where SA returns not required.