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TAX NEWS

Changes and issues contained in HMRC’s Agent Update

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Published: 22 Nov 2022 Update History

ICAEW’s Tax Faculty highlights current issues and reminders for agents including: payments by card reader, voluntary class 2 NIC on 2020/21 tax returns and a new advance assurance online service.

The following items were covered by HMRC in Agent Update 102.

HMRC accepting payments by card reader

From 31 October 2022, HMRC debt collection officers will carry card readers during visits to taxpayers’ premises. This will allow taxpayers to make full or partial payments by card at their premises, instead of having to make payments by phone. Taxpayers can contact HMRC to confirm the identity of the HMRC officer before making payment. Read more on how HMRC deals with taxpayers who cannot pay their tax bill.

Voluntary class 2 NIC on deferred 2020/21 tax returns

HMRC is contacting taxpayers who paid voluntary class 2 national insurance contributions (NIC) via their 2020/21 tax return but did not file their returns until after 31 January 2022. 

HMRC allowed an extended period to 28 February 2022 to file 2020/21 tax returns without incurring a late filing penalty. However, for tax returns submitted after 31 January 2022, the tax calculation does not accept voluntary class 2 NIC. Instead, it shows a message that it is too late to pay. HMRC has identified 3,900 affected taxpayers. It will contact them by letter with details of how to resolve the issue. If an affected taxpayer is not contacted by HMRC in the near future, they should contact the NIC general enquiries helpline.

New online service for EIS, VCT and SEIS advance assurance applications

Companies seeking advance assurance for an investment under the enterprise investment scheme (EIS), seed enterprise investment scheme (SEIS), or venture capital trusts (VCT) must now make their applications online.

Agents should note the requirement to provide a copy of the authorisation to act on behalf of the company, signed and dated within the last three months with every application. Furthermore, advance assurance applications for social investment tax relief must still be made by email or post. Full details: Apply for advance assurance on a venture capital scheme.

Other points from the latest Agent Update

The Tax Faculty has also highlighted issues covered in Agent Update 102 in:

HMRC to transfer remaining businesses to MTD VAT

HMRC rolls out the income record viewer service for agents

Payroll: reporting advances of salary

Help HMRC develop agent accounts 

HMRC launches form to support VAT return repayment claims

Updates to TRS guidance for excluded express trusts

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