Tax news in brief
Highlights from the broader tax news week ending 24 February, which includes: the opening of the online portal for the governments new payment scheme for deferred VAT, publication of the 2021/22 CWG2, OTS urges taxpayers to share their thoughts on the use of third-party data and HMRC publishes archive of pre-Brexit VAT notices.
Deferred VAT payment portal opens
Business that chose to defer their VAT payments between March and June 2020 due to the coronavirus pandemic can now opt in to HMRC’s new payment scheme. The scheme enables businesses to pay their deferred VAT in up to 11 monthly instalments from March 2021. The online portal to set up payments opened on 23 February 2021 and will close on 21 June 2021. Access the portal.
HMRC publishes 2021/22 guidance on NIC and PAYE
The 2021/22 edition of HMRC’s “Employer further guide to PAYE and national insurance contributions” (CWG2) was published on 19 February. The CWG2 is updated annually and outlines procedures relating to PAYE and class 1 national insurance contributions, defines special types of employee and provides guidance on pay, expenses and benefits. Access the 2021/22 CWG2.
OTS asks taxpayers for feedback on third-party data
As part of its exploration of how “smarter use" of third-party data could make tax easier, the Office of Tax Simplification has launched a survey to collect taxpayers’ feedback. The anonymous, 10-question survey asks whether taxpayers access their personal tax account and what they believe would be the main benefits of having third parties send data directly to HMRC. The consultation closes on 9 April. Participate in the survey.
Archive of pre-Brexit VAT notices
HMRC has collated and published the VAT notices withdrawn on 31 December 2020 at the end of the Brexit transition period. The archive of notices has been made available for organisations needing to check transactions made on or before 31 December 2020 and for audit reasons. The notices cover: imports, the retail export scheme, claiming VAT back on tax-free shopping in the UK, claiming back VAT paid in the UK or the EU, the single market and new means of transport. Access the archive.
HMRC updates starter checklist for PAYE
On 23 February HMRC amended its starter checklist for PAYE for employers. The checklist gathers information to register new employees who do not have a recent P45. The new version is for use with employees whose first pay date is due on or after 6 April 2021 and includes updates to include information in light of the new Student Loan Plan 4 which is being introduced on that date. Download the checklist.
HMRC reminds employers of rule changes from April
HMRC published its latest Employer Bulletin on 10 February and it provides a reminder of various rules and rates changes coming into force in April. It highlights: the expansion of the off-payroll working rules (IR35), changes to the construction industry scheme, national insurance holiday for employers of veterans, fuel benefit upratings and the treatment of termination payments and post-employment notice pay. Read the Bulletin in full.