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HMRC letters to clients delayed

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27th May 2016
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Accountants who are required to send HMRC letters to clients won’t have to do so immediately, as the regulations have been delayed

The requirement to send a specifically worded HMRC letter to clients who have received advice about offshore assets or income is imposed by Finance (no.2) Act 2015 s50.

Only individuals who were clients of the firm on 30 June 2016 were due to receive the letters, and that audience is further limited by details to be set out in the regulations as we reported in April 2016.

However, the publication of the final version of those regulations has been delayed, so they now can’t come into effect on 30 June 2016 as previously expected.

HMRC commented: “The period within which to comply with the regulations will similarly be extended from the original date of 30 April 2017 to an appropriate later date to allow for the obligation to be incorporated as far as is possible into normal communications with clients.”

The reason for the delay is given as “delays in publishing guidance on Gov.uk to support those affected by the measure”.

In other words, the HMRC guidance to accompany and explain the regulations isn’t ready yet and it now can’t be published before 24 June 2016 as the civil service has now gone into purdah mode in advance of the EU referendum. 

The CIOT has apologised to its members for this delay saying, “We recognise that the continuing uncertainty which this delay causes is frustrating.

Until the regulations are published and the HMRC guidance is posted on GOV.UK, it is not possible to determine what will need to be done to comply with the Regulations.”

As soon as we hear more on this issue will we let you know.

Replies (5)

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7om
By Tom 7000
31st May 2016 11:38

If you think HMRc are slow now wait and see what happens if we are out of Europe...10% of the staff will be allocated to a small room to discuss what do we do now...for a period of 5 years...so 10% less of them to answer phones ;)

Same for all the other govt depts too and the local councils and hospitals...

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Replying to Tom 7000:
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By pauljohnston
31st May 2016 12:00

@Tom7000. Not sure why you dont think that happens now?

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By richardterhorst
31st May 2016 12:34

If HMRC gives me the postage and the envelopes I may just spend a few minutes copy and pasting their suggested wording.
I pay taxes for HMRC to do their work. Not for me to do it.

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By Joe Soap
31st May 2016 17:33

I haven't read the relevant regulations and I do not intend to do so.
But I know a pedant who would question whether the need is to send the letter to "clients who have received advice about offshore assets or income". Would it not be limited to "clients who have been given advice on offshore assets or income by the firm"?

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Replying to Joe Soap:
Head of woman
By Rebecca Cave
01st Jun 2016 09:45

You will not have had the opportunity to read the relevant regualtions as they haven't been published yet. When the regualtions are published I will up date the community on who is required to receive the letter - see also my previous articles on this topic.

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