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HMRC's latest Agent Update


Published: 18 Oct 2022 Update History

ICAEW’s Tax Faculty highlights current issues and reminders for agents, including: residence and exceptional circumstances; unallocated payments on account; registering for plastic packaging tax; changes to MTD terminology for VAT; and reporting changes for a VAT-registered business.

The following items were covered by HMRC in Agent Update 101 and elsewhere on gov.uk.

Personal tax residence and exceptional circumstances

HMRC is writing to taxpayers who have included days attributable to exceptional circumstances or COVID-19 related workdays on their 2020/21 UK tax returns. A copy of the letter will also be sent to agents if one is authorised. HMRC has reported seeing several errors on 2020/21 UK tax returns regarding this. Where HMRC believes the tax return to contain an error, taxpayers will have 60 days from the issue of HMRC’s letter to submit an amended return. Other taxpayers will receive an educational letter with further guidance.

A new online residence checker tool has also been launched by HMRC to assist taxpayers in checking their tax residence status.

Unallocated payments on account

Several agents have reported that the second self assessment payment on account for 2021/22 has not been allocated to individual taxpayer’s accounts. This is despite the payment being made before 31 July 2022 and banked by HMRC.

HMRC has confirmed that this issue should be corrected by 19 October 2022. Taxpayers should check their accounts after that date.

Plastic packaging tax – return and payment due by 31 October 2022

A business that has produced or imported 10 tonnes or more of plastic packaging since 1 April 2022 may need to register for plastic packaging tax (PPT) for the first time.

If required to register, the business must submit its PPT return, for the period from 1 July to 30 September, by 31 October 2022.

Read the guidance on how to complete your PPT return on GOV.UK.

Removing references to ‘Making Tax Digital’ for VAT from ASA

Since April 2022, all VAT-registered businesses have been required to sign up to Making Tax Digital (MTD) and comply with the requirements – unless they are exempt.

As businesses should now be using MTD for all VAT as standard, the terminology ‘MTD VAT’ within the agent services account will be changed to ‘VAT’.

Webinar: completing VAT 484 form

HMRC will be hosting a webinar for agents on how to complete the VAT484 form to report any changes to a VAT-registered business, including contact details, bank details and VAT return dates.

Agents can register for the webinar via: Using the VAT484 form to report changes
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