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
The Tax Faculty
ICAEW's Tax Faculty is 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.
More from the Tax Faculty
Stay up to date with the latest developments in tax by signing up to the Tax Faculty's weekly e-newsletter
Comprehensive support for Tax practitioners each month from the Tax Faculty and expert contributors.
Expert advice from the Tax Faculty's technical managers on all the developments in tax policy and practice.