Highlights from the broader tax news for the week ending 10 November, including: a reminder that HMRC will no longer pay tax credits, child benefit or guardian allowances into Post Office card accounts from 1 December, an update from HMRC on how it's supporting taxpayers during COVID and confirmation that the UK-Swiss Convention on Social Security came into force on 1 November.
UK-Swiss Convention on Social Security Coordination
HMRC has confirmed that the new UK/Switzerland: Convention on Social Security Coordination came into force provisionally on 1 November 2021. Individuals going to work in Switzerland should follow the updated guidance on national insurance for workers from the UK working in the EEA or Switzerland.
HMRC: supporting taxpayers and the economy during the pandemic
HMRC has updated its issue briefing to reflect HMRC’s latest position on supporting taxpayers during the COVID-19 pandemic. The briefing encourages taxpayers to come forward if they have made a mistake in a claim for COVID support and also highlights HMRC’s compliance efforts to identify fraudulent claims. The briefing states that HMRC’s approach is to “collect the tax due in a way that recognises the very real needs and challenges that businesses and individuals face” and to be “professional, fair and even-handed” in the way it interacts with taxpayers. The briefing concludes with HMRC’s approach to collecting debt and comments that it will begin to take insolvency action against some companies as a last resort now the moratorium on company winding-up petitions has been partly lifted. Read the briefing in full.
Three weeks before HMRC stops payments to PO accounts
Around 24,000 recipients of tax credits, child benefit or guardian allowances have yet to update their bank account details with HMRC ahead of its ceasing payments into Post Office card accounts. Recipients have until 30 November to provide HMRC with alternative bank account details and continue receiving tax credits, child benefit or guardian allowance payments. If the change cannot be made in time, HMRC will suspend payments and pay the balance when it receives new bank account details. Recipients of HMRC payments can use their personal tax account to provide alternative account details. Alternatively, those receiving child benefit can change their bank account details via gov.uk or by contacting the child benefit helpline on 0300 200 3100, whereas tax credits recipients can change their bank account details by contacting the tax credits helpline on 0345 300 3900.
This guidance is created by the Tax Faculty, recognised internationally as a leading authority and source of expertise on taxation. The Faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.