Highlights from the broader tax news week ending 20 October, which includes: highlights from HMRC's latest Employer Bulletin, the end of the extended to appeal tax decisions and new HMRC support on what happens when tax pays aren't billed and on new tax checks for some licence renewals in England and Wales.
Xmas pay and extended time limits highlighted in Employer Bulletin
HMRC’s Employer Bulletin for October 2021 includes a reminder of the importance of using the normal (or contractual) payday in the full payment submission (FPS), even where a payment is made early for Christmas to protect employees’ eligibility for universal credit. HMRC has also published its view of when an extended time limit of 12 years can apply to under payment of tax due under PAYE. The bulletin also recognises that some (but not all) payslips will contain a generic message to highlight the 1.25% NIC increase in 2022/23.
Extended window to appeal due to COVID now closed
In May 2020, HMRC introduced a three-month extended window to appeal against tax decisions and penalties if the delay in making the appeal was due to coronavirus and the appeal was dated from February 2020 onwards. This extended period ended on 30 September 2021. This means that for tax decisions and penalties dated up to and including 30 September 2021, the extended three-month window to appeal is still available. However, where a tax decision or penalty is dated on or after 1 October 2021, the normal 30-day time limit for making an appeal applies. It should be noted that the ongoing effects of the pandemic may still be a reasonable excuse for not meeting payment and filing deadlines.
Tax debt advice from HMRC
HMRC has created a new guidance page to answer the question ‘What will happen if you do not pay your tax bill?’ The guidance ranges from contacting HMRC as soon as taxpayers experience problems paying their tax bill to the debt enforcement powers at HMRC’s disposal and its use of debt collection agencies.
HMRC guidance and resources highlighting new tax checks for licence renewals
From 4 April 2022, the renewal of certain licences taxi and scrap metal licences in England and Wales will require the applicant to first complete a tax check with HMRC. HMRC has produced promotional material to highlight the change, guidance for licence applicants, and guidance for licencing authorities.
ICAEW Know-How from the Tax Faculty
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