Guidance

Issue 112 of Agent update

Published 20 September 2023

© Crown copyright 2023

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This publication is available at https://www.gov.uk/government/publications/agent-update-issue-112/issue-112-of-agent-update

Technical updates and reminders

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

Tax

EU exit

Making Tax Digital (MTD)

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:

Tax

Helping customers spot and get out of tax avoidance

Take a look at our ‘Tax avoidance — don’t get caught out’ campaign. We’re running it to help contractors spot the warning signs of tax avoidance, get support to leave schemes, and report suspicious companies.

Want to help us protect your clients? You can share our campaign messages, tell them about our interactive risk checker tool, and signpost them to our supportive guides. This includes personal stories from contractors who want to help other people learn from their mistakes.

You can also find published details of tax avoidance schemes and their promoters to steer clear of. This is not a complete list of all tax avoidance schemes currently being marketed. There may be other schemes, promoters, enablers and suppliers that HMRC cannot publish information about at this time.

Spread the word with your clients by sharing or liking HMRC’s posts on Facebook, Instagram, LinkedIn, X (Twitter) and Reddit.

Got a client who thinks they may be caught up in a tax avoidance scheme? Encourage them to get in touch with us as quickly as possible. We can help them get out of the scheme and back on track.

Updated 2022 to 2023 Self Assessment exclusions and special cases documents for individuals

The Self Assessment Exclusions and Special Cases documents, which set out whether Self Assessment customers should file a paper tax return rather than an online one, have been updated.

These documents are produced for software developers working with Self Assessment online services, but we know that some tax agents also find them useful when dealing with clients with complicated tax affairs.

You can find these documents on GOV.UK at: Self Assessment technical specifications (2023) for individual returns.

Just 15 days left to register for Self Assessment

The deadline for registering for Self Assessment is 5 October.

If you have clients who need to register, make sure they register on time.

Taxpayers who are unsure if they need to submit a tax return can use HMRC’s online tool to help them work out what they need to do.

For those who need to register, we’ve produced a step-by-step instruction video showing the self-employed and not self-employed how to register online.

The video for the self-employed also tells customers how they can set up a delegate such as a tax agent to complete their online registration for them. Share these helpful videos with your clients.

How do I register online for Self Assessment if I’m self-employed?

How do I register online for Self Assessment if I’m not self-employed?

How to reduce Self Assessment repayment delays

Nearly 90% of Self Assessment repayments are processed automatically without delay. The remainder leave the automated system and take longer to process.

Customer and agents should observe the following advice to reduce repayment delays:

  • do not send in voluntary returns — register your client for Self Assessment, await the notice to file a return before submitting the return
  • uncleared credit — do not submit a repayment claim within 14 days of making a payment
  • ensure your client’s address is up to date — clients with correspondence returned to the HMRC return letter service will encounter further checks
  • bank sort code and account number — check these are accurate before submitting a repayment claim
  • deceased clients — ensure any capacitor is notified to HMRC before submitting a return on which a repayment is requested
  • previously bankrupt clients — ensure the repayment request details are submitted using the post-bankruptcy Unique Taxpayer Reference (UTR)
  • payable orders — encourage clients to receive their repayment electronically

A full list of potential repayment inhibitors is included in Self Assessment manual 113010.

Income Tax Self Assessment Returns — new information required on disposals of Excluded Indexed Securities

For income tax purposes, the Self Assessment tax return from the tax year ended 5 April 2023 will include a box for individuals to declare their gains on excluded indexed securities (EIS). This information is being requested to assist HMRC in assessing disposals of securities and to inform policy making in this area. The information to be included is the total gains from the disposal of EIS during the year, before the effect of any losses or reliefs.

Most software providers have updated their software to accommodate the new requirements. However, in certain cases individuals may be dependent on financial institutions providing them with transactional information for the tax year in question. We are aware that some financial institutions will not be in a position to provide this information to their customers for the 2022 to 2023 fiscal year. We therefore ask individuals to take reasonable care to make arrangements to have this information available for their 2022 to 2023 returns. However, we understand that this will not always be possible by the filing deadline.

HMRC expects individuals preparing their Self Assessment tax return to take all reasonable steps to ensure that the tax return is correct and complete to the best of their knowledge.

In cases where individuals are not able to obtain all the information required for the return, they should complete the tax return on the basis that appears most appropriate and should include full details of the points on which they are uncertain in the return. In particular, disclosure should be made under ‘any other information’ if they know they may have disposed of EIS assets in the period and are unable to quantify the amount of the gains to which this applies.

If the information should become available after the return has been filed, but within the deadline for amendment, investors should file an amendment to the return including the EIS details.

Further details of HMRC’s Self Assessment legal framework and approach to provisional and estimated information can be found in HMRC internal manual SALF206.

Online tool for companies to calculate balancing charges for disposal of super-deduction or 50% special rate plant and machinery

HMRC have published an online tool to help work out balancing charges for the disposal of certain plant or machinery.

The tool can only be used for assets on which a company has claimed the super-deduction or the 50% special rate first-year allowance. It checks which relief the company claimed and gathers necessary facts to work out the balancing charge.

The super-deduction and special rate first-year allowance were only available to companies for expenditure incurred in the period 1 April 2021 to 31 March 2023.

Updates to patent box guidance (CIRD200000 onwards)

The patent box is a tax incentive for innovative companies that reduces the Corporation Tax charged on qualifying profits. Guidance and instructions for patent box are in the HMRC internal manual from page CIRD200000.

Changes were made in Finance Act 2016 to the UK patent box in order for the Organisation for Economic Co-operation and Development to approve it as a ‘non harmful preferential tax regime’. There was a transitional period until 30 June 2021 where the old rules could be used in certain circumstances. Patent box computations are part of the Corporation Tax return and so computations using the old rules could be amended up to two years after the end of the accounting period. This period ended on 30 June 2023.

HMRC has now removed references to the old rules within these pages as they can no longer apply to patent box computations or amendments, although instructions remain for patent pending calculations.

There have been no policy or legislative changes.

Alcohol Duty: apply the new duty rates and check the two new reliefs before submitting a return this month

The following changes to the Alcohol Duty structure and the new reliefs took effect on 1 August 2023:

  1. A new, simpler Alcohol Duty system: standardised Alcohol Duty bands for all types of alcoholic products based on alcohol by volume (ABV).
  2. Small Producer Relief, which reforms and extends the relief previously enjoyed by small breweries to producers of all alcoholic products under 8.5% ABV.
  3. Reduced rate for draught products, also known as Draught Relief, which reduces the tax due on draught alcoholic products under 8.5% ABV, packaged in containers of at least 20 litres, and designed to connect to a qualifying dispense system.
  4. Transitional arrangements for producers and importers of some wine products, to help them with moving to the new method of calculating the duty on their products. This allows businesses to use an ‘assumed strength’ of 12.5% ABV, for wines with an ABV between 11.5% and 14.5% ABV. This measure is in place for 18 months, from 1 August 2023 until 1 February 2025.

Remember to accurately account for Alcohol Duty. Before submitting your clients’ Alcohol Duty return this month, remember to apply the new rates, and check if they can take advantage of the two new reliefs.

Further resources

To learn more about the changes to Alcohol Duty you can:

The webinars include timestamps, so you can skip to the area which interests you.

If you support a small producer they can also use the Small Producer Relief calculator on GOV.UK to work out their reduced duty rate.

Coming Soon — tax agent toolkit for the assurance of remittances to be reported on tax returns

HMRC is finalising a new Toolkit to support agents in assuring that non-domiciled clients report taxable remittances on their Self Assessment returns.

We intend to publish the Toolkit in October 2023. A further Agent update will provide confirmation in due course.

Details of the Toolkit have been shared with representative bodies including the:

  • Chartered Institute of Taxation (CIOT)
  • Society of Trusts and Estates Practitioners (STEP)
  • Institute of Chartered Accountants in England and Wales (ICAEW)
  • Low Incomes Tax Reform Group (LITRG)
  • Institute of Financial Accountants (IFA)

HMRC is considering feedback provided.

The remittance basis legislation is wide-ranging and can be challenging to apply, particularly where affairs are complex or records covering many years must be considered.

We hope the Toolkit will assist conversations with clients to help them understand:

  • HMRC’s expectations in this area
  • the benefits of fully engaging with their agent in this process
  • the possible consequences of not engaging — this could include the cost of HMRC enquiries and possible extra tax, interest and penalties

Sharing details of the Toolkit ahead of publication will give taxpayers the opportunity to consider whether they need to take any specific tax advice when preparing their 2022 to 2023 Self Assessment returns.

The Toolkit will set out HMRC’s expectations in relation to the issues that need to be considered. This will help agents and clients understand whether taxable remittances have occurred.

Some agents may need to seek assistance to support their clients if they do not have sufficient experience in relation to the remittance basis.

Areas of risk relating to remittance reporting fall broadly into the following categories

  • agent not having all the relevant information
  • incomplete record keeping — Including not being able to identify the source of funds in bank accounts or used to buy assets
  • interaction with anti-avoidance legislation — settlements, transfer of assets abroad and capital gains
  • remittances by other relevant persons or via offshore structures
  • relevant debts and loan collateral
  • use of credit cards
  • remittances of gifts by third parties

The content of the Toolkit will be based on HMRC’s view of how tax law should be applied. Application to specific cases will depend on the law at the relevant time and on the precise facts.

The Tax agent toolkits collection provides further information on using toolkits and reasonable care under HMRC’s penalty system.

Capital Gains Tax on UK property paper return

As announced in Agent Update 106, HMRC made the paper version of the Capital Gains Tax on UK property return, with accompanying notes, available to download on a trial basis.

The trial began in February 2023 and was extended until the end of September 2023 as announced in Agent Update 111.

As of 30 September 2023 the trial for the downloadable paper version of the Capital Gains Tax on UK property return will come to an end. The form will remain online whilst HMRC evaluate the results of the trial. HMRC will communicate the outcome of the trial in a future agent update.

The downloadable forms do not replace the online Capital Gains Tax on UK property account and are only intended to assist those who cannot report and pay tax using the online service.

Paper returns must only be made in certain circumstances. The full list of circumstances can be found on GOV.UK. If your circumstance is not listed but you are having difficulty reporting online, contact HMRC for further help.

Non-resident UK individuals should continue to use the alternative sign in process to report and pay through the Capital Gains Tax on UK property account, unless digitally excluded. Details of the alternative sign-in process can be found in HMRC internal manual CG-APP18-160.

Research and Development tax relief — remember your additional information and claim notification forms

As of 8 August 2023, all companies claiming Research and Development (R&D) tax relief are required to submit an additional information form to HMRC before their Corporation Tax Return containing the claim.

Visit GOV.UK to check how to access the additional information form, as well as what is required and when to submit.

Additionally, for accounting periods starting on or after 1 April 2023, some customers are required to submit claim notification to HMRC before their Corporation Tax Return containing the claim.

Visit GOV.UK to tell HMRC that you’re planning to claim R&D tax relief, including what is required and when to submit.

HMRC have found, however, that almost half of all claims received (between 8 August and 3 September) have been submitted by customers without the required additional information form. HMRC has started writing to those customers — and, where authorised, their agents — to explain that their R&D claim is invalid and to tell them what they need to do to make a valid claim.

Determining UK establishment

The use of high-volume addresses as principal place of business has increased in recent years.

Many of these addresses are being used by overseas established business and may be being used by some traders to avoid being treated as a Non-Established Taxable Person (NETP) by online marketplaces.

As a result, some online marketplaces are not collecting and paying the VAT due on behalf of the trader. This gives these NETPs a competitive advantage, particularly against genuine UK businesses.

We are writing to VAT registered businesses to ask for evidence to prove they are established in the UK. Non-response to our enquiry will result in HMRC considering the business to be non-established for VAT purposes and recording this.

The purpose of this activity is for HMRC to better understand our own NETP population to ensure our records are correct.

HMRC only require a response from businesses who believe they meet the criteria to be UK established.

Background

In January 2021, the law changed making online marketplaces liable for the VAT from sales made by overseas traders on their platforms. HMRC believes that some NETPs who have incorporated in the UK and provided UK address details to marketplaces, have avoided marketplace liability rules.

NETPs will then not declare the VAT and use this to attain a competitive advantage, particularly against genuine UK businesses.

Action to take

If you represent a business that meets the criteria to be established in the UK for VAT, and they receive a letter asking for evidence, they need to send HMRC evidence to show they are UK established. Details of what evidence can be provided is included in the letter.

Businesses who are based overseas and are non-established do not need to respond.

Agents can also send us the completed form from their agent email address shown on the VAT registration application. Agents should also copy the business email address into the email when they send it.

If a business wants us to communicate with an agent, they will need to complete and send the ‘Authorising your agent (64-8)’ form. A copy of this form can be found on GOV.UK by searching ‘64-8’.

The business will need to send us the completed form.

If we do not receive a completed ‘Authorising your agent (64-8)’ form, we’ll be unable to talk to an agent about the application.

Economic Crime Levy for anti-money laundering regulated businesses — HMRC online service now open for registrations

The HMRC Economic Crime Levy (ECL) service is now open for ECL registrations, submissions and payments.

Tax agents cannot register their clients for ECL. Affected entities must register, submit and pay the ECL themselves.

The information in this message is only for those whose collection authority is HMRC.

Background information on ECL can be found on GOV.UK and in the HMRC ECL Manual.

Affected entities only need to register for the ECL once, but need to submit an online return and pay the ECL every year that their UK revenue exceeds the threshold.

Affected entities must submit a return and make the ECL payment by 30 September each year.

The deadline is approaching, the payment for the financial year from 1 April 2022 to 31 March 2023 is due on 30 September 2023.

To pay ECL to HMRC, affected entities will first need to register before declaring and paying their liability. If they have not yet registered for ECL, submitted their return or paid their ECL, affected entities should access the ECL Service to do so.

If affected entities do not submit their return and make payment by 30 September, they may have to pay penalties and interest.

Overlap Relief — preparing for the new tax year basis

On 11 September the online form for submitting requests for details about Overlap Relief was launched on GOV.UK.

Taxpayers with an accounting date other than 31 March or 5 April who are affected by the move to the new tax year basis may need to find out the details of their Overlap Relief. They’ll need to do this ahead of submitting returns for the 2023 to 2024 transitional year.

Overlap Relief information can only be provided if these figures are recorded in HMRC systems, taken from information submitted by taxpayers as part of previous tax returns. If this information has not been submitted in tax returns, HMRC will not be able to provide it. However, in these circumstances, it may be possible to provide historic profit figures, to allow Overlap Relief to be recalculated.

When preparing to fill out the online form for details about Overlap Relief, make sure that you have the following information:

  • customer name
  • Unique Taxpayer Reference (UTR) or National Insurance number
  • name or description of business, or both
  • whether the business is a sole trader or part of a partnership
  • if the business is part of a partnership, the partnership’s UTR
  • date of commencement of the self-employed business, or date of commencement as a partner in a partnership (if not known, then the tax year of commencement)
  • the most recent period end date up to which the business used to report its profit or loss
  • year or years the accounting period changed (if applicable)

Further guidance on Overlap Relief and Basis Period Reform is available on GOV.UK and HMRC is also running a series of webinars for agents about the new tax year basis.

Plastic Packaging Tax — mass balance approach consultation

On 18 July 2023, the government published a 12 week consultation on allowing a mass balance approach (MBA) for calculating the recycled content in packaging made from chemically recycled plastic waste, for the purposes of the Plastic Packaging Tax (PPT).

The consultation closes on 10 October 2023.

The consultation explores the potential application of a mass balance approach to PPT for chemically recycled plastic. If introduced, these changes will help create the right conditions for further investment in the UK chemical recycling sector and strengthen the economic incentive for businesses to use more recycled plastic in packaging.

The consultation also considers the future of the exemption from PPT for the immediate packaging of human medicines if a MBA is permitted, and the treatment of pre-consumer waste as recycled material for the tax.

You can access the consultation document and the response form, using this link:

Plastic Packaging Tax — chemical recycling and adoption of a mass balance approach.

The Administrative Burden Advisory Board (ABAB) Tell ABAB report 2023

The Administrative Burden Advisory Board published their 2023 Tell ABAB survey report on GOV.UK on 19 September 2023.

The report details the responses to April’s Tell ABAB Survey, which this year had a record 7,500 responses. In previous years, responses have averaged around 3,000. Tax agents play a crucial role in the success of the survey: 13% of respondents to this year’s survey identified as tax agents.

ABAB is passionate about listening to and understanding the needs of the small business community. Board members come from a range of businesses and professions, and their goal is to support HMRC to make the tax system quicker and simpler for small businesses.

We encourage you to share the report with colleagues. If you would like to comment on the report, or help ABAB with their work, email: advisoryboard.adminburden@hmrc.gov.uk.

Self Assessment student loan deductions and payrolled benefits in kind

HMRC has identified that a small number of student loan borrowers have been overcharged student loan repayments on their Self Assessment tax return.

This only impacts customers who are:

  • repaying a student loan and
  • receiving payrolled benefits in kind that are not subject to Class 1 National Insurance contributions (NICs) through their employer and
  • in Self Assessment

We apologise for this error.

The additional amount that has been overcharged has been sent to the student loans company and offset against the student loan, reducing the balance and any interest that may be due.

How this happened

When we work out student loan repayments, one of the figures we use is the total PAYE income declared on the Self Assessment tax return.

If this figure includes payrolled benefits in kind, then Self Assessment would calculate student loan repayments on this.

Student loan deductions are not due on payrolled benefits in kind that are not subject to Class 1 NICs and currently our systems are unable to distinguish between payrolled benefits in kind and the rest of the PAYE income. Because of this, we’ve included these payrolled benefits in kind in our calculations when we should not have. This resulted in a higher student loan charge.

What we are doing to correct this

We are:

  • writing to customers who have been impacted by this issue and giving them a choice to have a refund or allow the overpayment to be offset against their loan balance
  • working to fix the problem so that payrolled benefits in kind that are not subject to Class 1 NICs can be entered as a separate amount to the total PAYE income on the Self Assessment tax return

Until the fix is introduced, there are steps we’d like you to take when completing your clients next Self Assessment tax return, to make sure your client pays the right amount of student loan repayments.

These steps can be found on GOV.UK under tell HMRC about a student or postgraduate loan in your tax return, or you can contact us on telephone: 0300 200 3311.

More information

GOV.UK has more information on:

VAT registration is quicker, easier and more secure through the VAT Registration Service

From November 2023, agents should apply to register for VAT through our online VAT Registration Service (VRS). Over 95% of customers already use this service — it’s the quickest, most secure and easiest way.

Supporting our customers is a key priority for HMRC and moving to online applications for VAT registrations aligns with HMRC’s ambition to increase the use of digital channels including Making Tax Digital (MTD).

HMRC is providing simpler, secure and more efficient services for customers, such as the VRS, as part of our vision to be a trusted and modern tax and customs department. Most customers are digitally able and many report a better experience when using digital channels — accessing their information at a time and place that suits them.

HMRC is committed to offering greater digital options to give customers the experience they expect from a modern tax authority. We use customer feedback and system performance data to continually improve our systems and make them easier to use.

Agents should continue to use VRS through the Agent Services Account and to avoid unnecessary delays, ensure they have relevant client details ready and input them correctly.

For customers that are unable to access and use our digital channels, HMRC will always provide a service to meet their needs, continuing to offer support through non digital channels such as the phone, including our needs extra support service.

We know some customers will still need to apply by post on a VAT1 form if they are either exempt from applying online or if it is a specific type of registration. Customers can ask for a VAT1 form by calling the VAT Helpline. They will not have to apply for an exemption in advance, but we may ask why they want to apply by post.

Learn more about registering for VAT on GOV.UK at Register for VAT. For more details on exemptions go to Making Tax Digital for VAT and for paper registrations go to Register for VAT by post.

EU exit

Customs Declaration Service: announcement of phased approach for exports

There will be a staged approach to the deadline to move to the Customs Declaration Service for exports.

Some businesses may still be able to start making export declarations through the Customs Declaration Service by Thursday 30 November 2023. Businesses will be contacted by HMRC or their software developer with further support if this option is available.

All other export declarations should be made on the Customs Declaration Service by Saturday 30 March 2024.

This decision was taken in consultation with industry trade partners to allow businesses more time to prepare and to ensure IT is thoroughly tested.

HMRC will continue to provide guidance to support businesses making declarations through the Customs Declaration Service.

Just 10 days to go until the UK Trader Scheme closes

There are now just 10 days left until the UK Internal Market Scheme (UKIMS) replaces the UK Trader Scheme (UKTS).

From 30 September 2023, UKTS can no longer be used to move ‘not at risk’ goods into Northern Ireland. Traders must be authorised for UKIMS to continue move goods to Northern Ireland without paying any duties.

Once businesses have registered for UKIMS, they can continue to declare goods ‘not at risk’.

We would encourage you to support any businesses you work with who are UKTS authorised to transfer onto the new UK Internal Market Scheme.

The expansion of the benefits UKIMS brings is explained in Agent Update: Issue 110. In order for HMRC to complete their enrolment onto this new scheme, traders will need to provide us with some additional information so that we can assess their eligibility.

Furthermore, from October‌‌‌ ‌‌2024, UKIMS, with the full operation of the customs ‘green lane’, will also ensure that ‘not at risk’ movements are also freed of unnecessary paperwork, checks and duties. Only existing commercial information will be needed.

Making Tax Digital

Making Tax Digital for Income Tax Self Assessment: overview and how to keep up to date

Making Tax Digital for Income Tax Self Assessment (MTD ITSA) will require customers to use software to keep digital records and share quarterly updates with HMRC to make tax reporting quicker and easier.

Self-employed individuals and landlords with an income of more than £50,000 need to make these changes by April 2026. Those with an income of between £30,000 and £50,000 will need to do so from April 2027.

The small business review into the introduction of MTD ITSA for those with an income under £30,000 will soon report back, and we’ll keep you updated on what that means for your clients.

These are vital steps towards a tax system that operates closer to real time, provides additional resilience for both businesses and HMRC, and continues our drive to reduce the tax gap so we can continue to support essential public services.

Agents can keep up to date with the latest MTD news and guidance, including the outcome of the review into the needs of smaller businesses (expected later this autumn) and opportunities to sign up to early testing of MTD ITSA, through this monthly Agent Update and by subscribing to HMRC’s help and support email service, both of which provide information on a wide range of topics.

As we approach April 2026 we will also be offering webinars on MTD ITSA, these will be available on GOV.UK, and updating agent toolkits to provide further guidance (you can view our current tax agent toolkits on GOV.UK).

HMRC agent services

Changes to the agent dedicated line

We recently consulted a range of stakeholders, including professional bodies who represent agents, about how to improve our current performance and service provided on the agent dedicated line (ADL).

The professional bodies who represent agents told us that a dedicated phone line remains top of the list of desirables. We want to reassure you that we remain committed to providing the right level of support for agents and that the ADL will remain available.

However, to meet the challenges we face, while offering the right support to you, we are introducing the following changes from 2 October 2023:

  1. We will no longer operate to a 10-minute service level on the ADL. Waiting times may vary depending on how many agents are calling us at any one time. We know that a high quality of service is important to you, and removing the 10-minute call answering target will allow us to focus on improving the quality of service we offer.
  2. We will be introducing information on call waiting times onto the ADL, allowing agents to make a decision based on that information as to whether to continue to wait in the queue, call back at another time or, if they can, use a digital option to resolve their query.
  3. If you call the ADL with a PAYE query, your will need to choose the PAYE option and your call may be rerouted.

We are also:

  • exploring the introduction of a webchat facility to the ADL — this is in its early stages and we will keep you updated on progress
  • working on further iterative changes on the ADL to improve the efficiency of the service
  • continuing to improve and enhance our digital services for agents such as income record viewer, agent dashboard and the check when you can expect a reply from HMRC tool, so more agents have confidence in using them as an alternative to calling us.

What this means for you

From 2 October, you may wait slightly longer than normal to speak to an adviser on the ADL, especially at peak times.

The introduction of information on call waiting times will help you to decide whether to call back later if the wait times are lengthy, or even try out digital options like ‘check when you can expect a reply from HMRC’, which we will continue to promote in our hold messaging.

Depending on the nature of your query, your call may be rerouted. For example, if you have a PAYE query, you may be passed onto a PAYE adviser. These advisers will only deal with PAYE, so you may be asked to call the ADL back if you have queries on other subjects, like Self Assessment for example.

Our commitment to supporting you

These changes are being made as part of the commitments set out in the HMRC Charter to support agents and their businesses, recognising the value tax agents bring to the tax administration system.

We are also committed to our ongoing engagement with a range of stakeholders including the professional bodies who represent agents, as we work to improve our agent dedicated services.

Changes to our probate phone line

HMRC and HM Courts and Tribunals Service (HMCTS) are working together to improve the customer experience for probate and inheritance tax customers.

From Monday 2 October, HMRC will no longer offer a dedicated probate phone line. If a customer has a probate query, they should contact HMCTS. If a customer has an inheritance tax query, they should contact HMRC.

If a customer contacts the wrong phone line, both departments will do their best to help assist with the query. This will prevent customers from making an additional call unless it is absolutely necessary.

Previously, customers were confused by the two probate phone lines run by HMRC and HMCTS. Our call classification data, volume of misdirected calls and transfers confirmed this.

Simplifying the phone lines will make things easier for our customers, which is one our HMRC Charter standards.

Pay by bank account — enhancement

We have made improvements to the ‘Pay by Bank Account’ service so HMRC customers will have the option of making an immediate payment or scheduling it for a future date when paying their tax.

A future dated payment cannot be set up beyond the due date of the tax owed.

This service will only be available to customers who are logged in to their HMRC online account through the Government Gateway.

The feature is live for the following regimes:

  • VAT
  • Employers’ PAYE
  • PAYE Settlement Agreement
  • PAYE late payment or filing penalty
  • class 1A NICs

The service will also be available soon for:

  • Capital Gains Tax
  • Self Assessment
  • Simple Assessment
  • Corporation Tax
  • VAT One Stop Shop
  • Soft Drinks Industry Levy
  • Plastic Packaging Tax

Art market participants online learning guide

HMRC has launched an online learning guide for art market participants on GOV.UK to help businesses find out about:

  • money laundering regulations
  • risks and how to deal with them
  • your responsibilities
  • customer due diligence
  • identifying and reporting suspicious activity
  • training staff
  • record keeping

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.

Tax agent toolkits

HMRC have tax 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.

Our toolkits are currently being updated.

Here is the breakdown of toolkits by category:

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

Contact

Find out how you can complain to HMRC.

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

Check when you can expect a reply from HMRC.

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.

Online

Online training material and useful resources for tax agents and advisers.

HMRC videos, 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

National Insurance services to pensions industry: countdown bulletins.

Countdown bulletin 56 is the latest bulletin in this collection.

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

Agent online forum

Use of the customer and agent online forums continues to increase. To assist monitoring and processing of posts, and to maintain concise focused threads, agents are requested to refrain from making responsive posts, which do not provide additional evidence or impact support of a potential issue. Responsive posts which contain only comment or opinion unnecessarily lengthen a thread and are of negatory benefit to the service the forums provide to other users.

Issues Overview Group

The Issues Overview Group (IOG) met on 23 August to review common escalations from the agent online forum, where additional clarification on some issues was required. In addition to a detailed explanation on how to avoid Self Assessment repayment delays, a HMRC subject matter expert attended and updates on the escalations below were provided. IOG members again raised concerns on the quality of several responses, and updates on outstanding issues. This will be a substantive item at the next meeting.

MTDVAT-36306 — new registration not signed up for Making Tax Digital

Although for many customers Making Tax Digital (MTD) sign up is automatic, in exceptional circumstances some customers have to be manually linked to the customer record by completing MTD sign up following the previous process (prior to automation). Agents and their clients experiencing this issue can contact the new VRS inbox at email: vrs.newregistrations@hmrc.gov.uk or call the VAT Helpline for support.

MTDVAT-37400 — central assessment not overwritten by submitted return

We are aware that previously, when customers submitted a VAT return, this would be updated by the next day to show that the return had been fully submitted and the central assessment discounted. Even though this update would’ve taken place, any checks for submitted returns, for example repayment checks, in the back-end system would still go ahead and take place in due course.

The current system by design does not update the return submission till the transaction has been fully processed. This may be done automatically or may have an inherent delay, for example where it is subject to compliance and other checks. Only after this is done would the central assessment be discounted and the return showing as processed on the customer’s account.

CT-35754 — Corporation Tax amendments for long accounting periods

Extended accounting periods (over 12 months, and no longer than 18 months) for Corporation Tax have to be set up by an HMRC caseworker on our IT system.

You should write to us with full details of the accounting period (AP) change at least three months before the standard filing date of the first return in the AP to avoid being issued a penalty for late filing.

For example, for an extended AP running from 1 January 2022 to 30 June 2023 you would file two returns — 1 June 2022 to 31 December 2022 and 1 January 2023 to 30 June 2023. In this scenario, the standard filing date of the first return is 31 December 2023, so you should write to us by 30 September 2023 with full details of the AP change.

When filing an amended return for an extended AP, you can only file electronically if all the returns are within two years of their respective end date. All amendments after this date would have to be sent in on paper.

Using the earlier AP as an example, we will accept amended returns up to and including 30 June 2025. However, as the first return ends on 31 December 2022, we will not accept electronic amendments for this return after 31 December 2024, but any amendments could be filed on paper.

Contact Information for professional and representative bodies

If you are not a member of a professional body, contact the agent engagement mailbox: team.agentengagement@hmrc.gov.uk.

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