Agent Update
Agents and HMRC working together April - May 2017 - Issue 59
Welcome
Tax
HMRC service
Keeping you informed
Introduction
Welcome to Agent Update 59. In this edition we have the latest update from the
Pensions Regulator and find out why it is important to notify HMRC when a business
stops employing people.
The Working Together section includes details of the latest Talking Points meetings
and how you can register. And as well as the usual updates on issues you can read
about the Agent Services pilot, our Agent Account Managers service and Making
Tax Digital for Business.
I am reviewing the design, purpose and content of Agent Update and I really need your
help with this. Providing input should not take up too much of your time, but it will
help to ensure that the refreshed Agent Update meets your needs and those of others
in the tax professional community. Do you like the layout? What subjects are you
interested in? How do you read Agent Update, on PC, tablet, smartphone? There
are 18,000 subscribers to Agent Update, and and any input would be invaluable.
If you think you can help or you have any comments about Agent Update please
contact the editor Peter Smith by 2 June 2017.
If you would like an email reminder when each edition of Agent Update is published,
use the link below.
Sign up to receive email reminders of future issues of Agent Update.
Consultations
Working Together
Tax
Developments and changes to legislation and allowances relating to UK tax.
HMRC service
Changes to HMRC service, upcoming HMRC events and guidance.
Consultations
Details of live consultations and response summaries.
Working Together
Latest updates from the partnership between HMRC and the six main agent
representative bodies.
This month’s top articles
Changes to CT600
Read about the enhancements we have made to the CT600 form.
Changes to tax relief for residential landlords
Read about changes to the rules on income tax relief for interest and other finance
costs relating to residential property letting.
Reporting fraud to HMRC
Read about the recently launched HMRC Fraud Hotline.
section ends
page 1 of 20
Agent Update
Agents and HMRC working together April - May 2017 - Issue 59
Welcome
Tax
HMRC service
Consultations
Working Together
Alcohol Wholesaler Registration Scheme (AWRS)
Compliance
From 1 April 2017, if you are a retailer or trade buyer and buy alcohol from a UK
wholesaler to sell to the public you must check the wholesaler is registered under AWRS.
HMRC is improving guidance for the Worldwide Disclosure Facility (WDF)
Wholesalers approved under this scheme must provide you with their AWRS Unique
Reference Number (URN).
HMRC has provided a service for retailers and trade buyers to check their wholesalers
are approved.
Appeal against on online a penalty online
Your clients can appeal online against a 2015-16 Self Assessment late filing penalty.
To do this they will need to set up a Government Gateway account if they do not
already have one.
Changes to tax relief for residential landlords
From April 2017, the rules on income tax relief for interest and other finance costs
relating to residential property letting have changed. Individuals, partnerships, trusts
and executors of deceased estates will no longer be able to deduct all their finance
costs when calculating profits on residential letting. Individuals will have tax relief
restricted to the basic rate of income tax.
Read HMRC Guidance Income Tax when you let property: work out your rental
income.
Customers have until September 2018 to use HMRC’s WDF to bring their offshore
tax affairs up to date. Failure to make a disclosure and pay tax liabilities could lead to
tougher penalties or a civil or criminal investigation
HMRC is developing a webinar aimed at providing agents with a clearer understanding
of the technical aspects of the WDF, to enable a complete and correct disclosure to be
made. HMRC expects the webinar to available from early Summer 2017.
Read HMRC Guidance Worldwide Disclosure Facility: make a disclosure.
HMRC is tackling VAT Online Fraud by Overseas Sellers
More and more UK retail businesses have a presence online and are having to
compete with thousands of overseas online sellers - some of which are evading VAT.
HMRC has introduced a package of measures that gives us stronger powers to
address this fraud by focusing on two key groups:
•Overseas sellers - we can now direct an overseas seller to appoint a UK based VAT
representative. This representative can also be made jointly and severally liable for
the debts of non-compliant overseas sellers. We can also direct sellers to provide
suitable security
•Online marketplaces - new legislation allows us to hold online marketplaces jointly
and severally liable for the overseas sellers’ VAT debt. The online marketplace
can avoid being liable either by securing compliance from the overseas seller or by
preventing them from trading through its platform.
section continues>
page 2 of 20
Agent Update
Agents and HMRC working together April - May 2017 - Issue 59
Welcome
Tax
HMRC service
A VAT fact sheet has been published on GOV.UK in both English and Chinese
for further information about the rules and obligations on overseas sellers, VAT
representatives and online marketplaces.
Working to tackle tax avoidance
HMRC endeavours at all times to treat all customers fairly and even-handedly.
Find out about HMRC’s approach to tackling tax avoidance, how to report a tax
avoidance scheme and other relevant information.
Corporation Tax
Changes to the Company Tax (CT) Return form (CT600 Version 3)
We have changed the Company Tax (CT) Return form (CT600 Version 3) in response
to the Chancellors 2016 budget for State Aid, Franked Investment Income and
Restitution Interest.
We have made some minor format and text changes and added a new box for
bank surcharge.
There is also a new supplementary page CT600K that a company needs to complete
if it is chargeable to CT on any restitution interest that it has received from the
Commissioners of HMRC.
The revised CT600 Version 3, new supplementary page CT600K and amended
CT600 guide can be found on the GOV.UK page Corporation Tax: Company Tax
Return (CT600 (2017) Version 3).
Consultations
Working Together
Employment Intermediaries are reminded to file on time or face
penalties
Employment Intermediaries are reminded that the next reporting deadline is the
5 May 2017. Be prepared to submit your report on time to avoid being charged
a penalty.
Penalties may still be charged if HMRC is not aware that you have ceased as an
employment intermediary, or if you fail to submit a nil report where you have not
supplied any workers in a specific quarter.
Read HMRC Guidance What this means for an intermediary.
Guide to sending the client notification letter
It you are classed as a ‘Specified Financial Institution’ or ‘Specified Relevant Person’
you may need to send the notification letter to clients who are UK tax resident if
you have:
•provided them with financial advice or services
•provided them with an overseas account
•referred them for an overseas account
•referred them for advice or services overseas.
You must send the notification letter to all relevant clients between 30 September 2016
and 31 August 2017.
If you are a charity, you don’t need to send the notification letter to clients.
section continues>
page 3 of 20
Agent Update
Agents and HMRC working together April - May 2017 - Issue 59
Welcome
Tax
HMRC service
Consultations
Working Together
PAYE
PAYE is changing
Apprenticeship levy
The latest edition of Employer Bulletin provides information on how, from the end
of May, HMRC will use real time information to make automatic adjustments to
PAYE tax codes as they happen, rather than waiting until the end of the tax year.
These changes will help more personal taxpayers pay the right tax on their income
meaning more people will pay the correct amount of tax by the end of each tax year.
The apprenticeship levy was introduced on 6 April 2017 meaning some UK employers
now need to calculate, report and pay a contribution towards the apprenticeship
levy to HMRC through the PAYE process each month. Levy payers should use
the Employer Payment Summary (EPS) to report any levy due and should pay the
apprenticeship levy alongside tax and national insurance contributions by the 19th
(or 22nd if paying electronically) of each month.
Employer clients will be able to see their apprenticeship levy data using their Business
Tax Account after April. Agents will be able to view their clients’ apprenticeship levy
data through Agent Services from late summer 2017.
Read HMRC Guidance: Pay Apprenticeship Levy.
HMRC helps new employers get it right from the start
HMRC has guidance to help new employers get the new tax year off to a good start.
It’s important that employers are using the right tax code from the 6 April, so their
employees pay the right amount of tax from the start.
Using an incorrect tax code can also affect the Universal Credit entitlement of employees.
Once your employee’s tax and NIC deductions are calculated you need to make sure you
file your Full Payment Summary (FPS) on or before the date you pay your employees.
Watch HMRC’s YouTube video on getting the basics right.
To keep you informed we recently published an update on GOV.UK and will do so
again in May. We are also publishing an Employer’s Information Pack as well as videos
aimed at employers and employees to explain the changes and the help available.
The April edition of Employer Bulletin also provides information on a series of
webinars that HMRC started on the 12 April to help employers support their
employees with any changes. The GOV.UK tax code guidance will be updated and
live from 31 May.
What this means for you
Until 31 May things will continue as they are. Once we make the change we will send
employee’s tax code notifications at the point we know that their circumstances have
changed. We will continue to send a copy direct to the taxpayer and notifications to
employers and pension providers as we do now so, from that point of view nothing
will change.
Please read the employer bulletin and use the range of support products available to
you to ensure you are aware of the changes to PAYE to support your clients.
section continues>
page 4 of 20
Agent Update
Agents and HMRC working together April - May 2017 - Issue 59
Welcome
Tax
HMRC service
Consultations
Working Together
Scottish Income Tax rates and thresholds for 2017-18
GNS Notifications for student loans
Your clients must ensure they deduct the correct rate of tax based on the tax codes
provided by HMRC. If they are unsure how to include Scottish codes on their payroll
systems, they may need to contact their software provider.
Remember to regularly check your inbox for online notices as this is where you’ll find
any GNS student loan notifications.
From 6 April 2016, Scottish taxpayers have been identified and given an S tax code
based on the address held by HMRC. If your clients have moved home recently, please
ask them to tell us their new address online or through their Personal Tax Account.
If you receive a GNS notification instructing you to start student loan deductions, ask
each employee displayed which plan type they are repaying, or refer to the SL1 Start
Notice if you have it. Either way, you can now begin making deductions.
Read HMRC Student Loan repayment: guidance for employers.
Student loan repayment thresholds
Completing 2016-17 SA tax returns for student loan borrowers
From 6 April 2017, the repayment threshold for plan 1 loans increased to £17,775.
The plan 2 threshold will remain at £21,000.
Student Loan borrowers who are due to make repayments should continue to show
this in their SA tax return. The SA system will calculate student loan deductions using
plan type information supplied to us by the Student Loans Company.
Off Payroll working - student loan deductions
From 6 April 2017 reforms to off-payroll working in the public sector introduced a
change to the way fee-payers (public authority, agency or other third party) pay for
services from individuals engaged through an intermediary.
The fee-payer will:
•be required to report the amounts deemed paid to the worker, including Income Tax
and National Insurance contributions to HMRC. This should be done on or before
the date of deemed payment to the worker on a Full Payment Submission (FPS).
•not be required to report or deduct Student Loan payments from these individuals.
Student Loan payments will be calculated and deducted from the individual’s
Self Assessment (SA) return based on their total income.
If the fee-payer receives a Student Loan Start Notice (SL1) and a Generic Notification
Service (GNS) Employer Prompt for these individuals, they do not need to take any
action and should file these away for their own records.
The student loan questions on both SA100 and SA200 will remain the same.
Read HMRC guidance: Tell HMRC about a Student Loan in your tax return.
Tell HMRC straight away if your business stops employing people
You can avoid unnecessary penalties by telling HMRC the date you ceased being
an employer on either a FPS or Employer Payment Summary (EPS) by entering the
cessation date in the ‘Date scheme ceased’ box .
If you don’t pay anyone in a tax month or you know you are not going to pay anyone
for a length of time, tell HMRC on an EPS.
No payments to employees?
If you don’t pay someone in a tax month, please send an EPS by the 19th day of the
month, telling us there are no payments in the tax month.
section continues>
page 5 of 20
Agent Update
Agents and HMRC working together April - May 2017 - Issue 59
Welcome
Tax
HMRC service
Part year employees
If you know you are not going to pay anybody for a length of time, please send an
EPS by the 19th day of the month giving the dates of the period of inactivity.
Penalty and Appeal system (PAS) - mandatory information
- 1 April 2017
When appealing against a Real Time Information filing, payment or Construction
Industry Scheme penalty, the form Appeal a penalty has an optional Additional
information box.
To help us deal with your appeal, completion of the Additional information box will
be mandatory from 1 April 2017.
You can find more information about these changes in the April 2017 Employer Bulletin
and Disagree with a tax decision on GOV.UK
Consultations
Working Together
TPR has published new online guidance for advisers on these increases explaining
what your clients’ need to do and how you can support them.
Are your clients writing to their staff at the right time?
Communicating with staff at the correct time is one of your clients’ legal duties.
Employers must write to their staff within six weeks of their staging date.
Find out more about what communications their staff need to receive, and when.
Revenue and Customs Briefs
Revenue and Customs briefs are bulletins giving information on developments and
changes of interest. They are used to announce changes in policy or to set out the
legal background to an issue and have a six month life span.
section continues>
Pensions
The Pensions Regulator (TPR) - automatic enrolment updates
Do your clients have concerns about automatic enrolment? You can help set their
minds at rest by showing them the video where TPR talks to a residential care home
owner, who explains how he managed the automatic enrolment process.
He was initially worried about getting it wrong, but is now confident about what
to do, and how automatic enrolment benefits his employees. Watch the video and
get some real life top tips on how to make automatic enrolment run as smoothly
as possible.
New guidance for advisers on increasing contributions
The minimum contribution levels for automatic enrolment are increasing, known as
‘phasing’. There are two planned phases for the increases, the first from 6 April 2018
and then from April 2019. All employers will need to plan to make sure they are ready.
page 6 of 20
Agent Update
Agents and HMRC working together April - May 2017 - Issue 59
Welcome
Tax
HMRC service
Consultations
Working Together
VAT
VAT Notice 718/2: the auctioneers’ scheme
VAT Notes issue 4 of 2016
This notice explains the VAT Auctioneers Scheme and tells you when you may use the
scheme to account for VAT on the supplies you make.
HMRC publish VAT Notes quarterly. The latest issue contains a summary of all the
recent changes to the VAT rules and announces future changes.
VAT Notice 733: Flat Rate Scheme for small businesses
VAT Notice 700/1: should I be registered for VAT?
This notice cancels and replaces Notice 733 (February 2017).
This notice explains when you must register for VAT and how to do it.
VAT Notice 742A: opting to tax land and buildings
VAT Notice 700/11: cancelling your registration
This notice explains the effect of an option to tax and will help you to decide whether
to exercise that option.
This notice tells you when and how to cancel your VAT registration.
VAT Notice 700/45: how to correct VAT errors and make adjustments
or claims
See all the VAT Notices listed numerically.
section ends
This notice cancels and replaces Notice 700/45 (July 2015).
VAT Notice 700/67: registration scheme for racehorse owners
This notice explains the arrangements for registering owners of racehorses and
point-to-point horses.
VAT Notice 701/29: betting, gaming and lotteries
This notice explains how VAT applies to betting and gaming in general. It also
explains how VAT applies to bingo, lotteries, and machine games.
VAT Notice 718: the Margin Scheme and global accounting
This notice explains when you may use the Margin Scheme or the Global Accounting
Scheme, to account for VAT on your sales of goods.
page 7 of 20
Agent Update
Agents and HMRC working together April - May 2017 - Issue 59
Welcome
Tax
HMRC service
Consultations
Working Together
Contact
Where’s My Reply?
HMRC working with Tax Agents Blog
Find out when you can expect to get a reply from HMRC to a query or request you’ve
made. There is also a dedicated service for tax agents to:
The blog provides another channel to communicate about:
•joint HMRC and agent consultations
•improvements to HMRC services by working together
•news and updates that are agent specific
•HMRC’s Agent Strategy and the rollout of new digital services available for agents.
•register you as an agent to use HMRC Online Services
•process an application for authority to act on behalf of a client
•amend your agent details.
Start using Where’s My Reply? for tax agents.
Twitter
Manuals
Tweets cover information about HMRC and tax including; news, publications,
information, consultations, speeches and publicity campaigns. Follow us on Twitter@
HMRCgovuk.
Recent Manual updates
HMRC service
Agent Account Managers (AAMs) in HMRC
HMRC has a UK-wide team of AAMs to help tax agents and advisers deal with the
department more effectively. Find out how to use the AAM service.
Complain to HM Revenue and Customs
To make a complaint against HMRC on behalf of your client you must be appointed
as their Tax Advisor.
Employers need to register for email alerts
As the Department moves rapidly down the digital road it is becoming more apparent
that the days of paper mailings are numbered. It is important agents encourage
employers to register to receive email alerts so they are aware of the latest coding
changes and important information that is published on the Government Web pages.
You can check the latest updates to HMRC manuals or subscribe to automatic
notification of changes.
Online
Future online services downtime
Information is available on any downtime that may affect the availability of HMRC’s
online services. Please note this is subject to change and confirmation by HMRC’s
IT provider.
Online security - stay safe online
HMRC continuously monitors systems and customer records to guard against
fraudulent activity, providing regular updates on scams we are aware of. If you have
any concerns regarding the authenticity of any emails received from HMRC,
see the online security pages for agents.
section continues>
page 8 of 20
Agent Update
Agents and HMRC working together April - May 2017 - Issue 59
Welcome
Tax
HMRC service
Online training material and useful resources for tax agents
and advisers
HMRC videos on YouTube, online learning modules and live and recorded webinars
are available for tax agents and advisers providing you with free help, learning and
support on topical subjects.
Phishing emails and bogus contact: HMRC examples
A new type of phishing scam regarding ‘Tax Returns’, which is being circulated in
high volumes, has been added.
Reporting fraud to HMRC
On 4 April HMRC launched the HMRC Fraud Hotline. This is a new service which
will simplify the fraud reporting process. The new telephone number and online form
have replaced the former separate tax evasion and customs reporting lines.
To report fraud or evasion to us, you can:
•call the Fraud Hotline on 0800 788 887 between 8am-8pm seven days a week
•use the online digital form on GOV.UK.
As well as making it easier to report fraud, streamlining the service will allow more
time for analysis of intelligence, so cases can be quickly passed to our investigators.
Consultations
Working Together
PAYE
Changes to requests by agents for pay and tax details and
employment history
We have seen a growing number of security issues recently, related to requests from
agents for their clients’ pay and tax and employment histories through our helplines.
These include agents pretending to be their clients, and calling on behalf of clients
who have not given the correct permissions.
As a result, we are making changes to the way we supply this confidential data.
While we can continue to take requests for this information on our helplines, we can
no longer provide the detailed personal information directly to agents over the phone.
From 2 May 2017, we will send the requested information directly to the clients, who
will then be able to forward it to their agent for the relevant claim to be made or tax
return completed.
This security measure will add some time to the process, so as a quicker alternative,
please note that clients can access this information through the online service in their
Personal Tax Account. They can now view, print and download their pay and tax
details for CY and CY-1 in just a few minutes from their Personal Tax Account.
They will need their National Insurance number and a recent payslip, P60 or passport
to sign-in for the first time.
We are working on a digital facility that will enable agents to access their clients’
details securely online, which is expected to go live later this year.
Correction: Changes to Bereavement Contact
The telephone number in the article on page 9 of Agent Update 58 should have read
0300 123 1072.
This has now been updated.
section continues>
page 9 of 20
Agent Update
Agents and HMRC working together April - May 2017 - Issue 59
Welcome
Tax
HMRC service
Consultations
Working Together
Publications
Toolkits
Employer Bulletin Issue 65
Agent Toolkits 2017 Refresh
Issue 65 of Employer Bulletin is now available. This contains topical and useful
information about PAYE processes and procedures. This publication is issued
six times a year, and for employers to be informed when it is available on the
GOV.UK website, they must register to receive the email alerts.
HMRC has 20 online agent toolkits covering a range of topics. These provide guidance
on areas of error that HMRC frequently see in returns, setting out steps that you can
take to reduce those errors and improve tax compliance.
The annual refresh has begun with the seven following toolkits having been updated so far:
•Expenses & Benefits
•National Insurance Contributions and Statutory Payments
•Capital Gains Tax for land & buildings
•Capital Gains Tax for shares
•Trusts and Estates
•Capital Gains Tax for trusts and estates
•Chargeable Gains for companies.
National Insurance Services to Pensions Industry: countdown bulletins
Countdown Bulletin 24
These bulletins are for pension scheme administrators.
Trusts and Estates newsletter April 2017
These newsletters provide the latest topical and legislative information on Inheritance
Tax and Trusts. Included in the latest edition are articles on; the Trusts Register,
which provides a single point of access for trustees to register and update their records
online, the private beta trial of the first stages of Inheritance Tax Online and the
streamlining of Administration Period work.
The full 2017 toolkits refresh programme will be completed by the end of the summer.
See the 20 agent toolkits on GOV.UK
section ends
Raw Tobacco Approval Scheme
The Raw Tobacco Approval Scheme was introduced on 1 April 2017. This means that
all businesses and individuals who are involved in raw tobacco activity must have an
approval from this date, unless they are exempt. If an approval is not in place you risk
having the raw tobacco seized and a penalty issued, as detailed in Public Notice 2003.
Read How to apply for the Raw Tobacco Approval Scheme - GOV.UK
page 10 of 20
Agent Update
Agents and HMRC working together April - May 2017 - Issue 59
Welcome
Tax
HMRC service
Current Consultations
Landfill Tax: Extending the scope to illegal disposals
This consultation calls for views on whether to extend the scope of Landfill Tax to
disposals at illegal waste sites. These disposals are currently outside the scope of
Landfill Tax and rogue operators are taking advantage of this to undercut legitimate
traders. The consultation has implications for taxpayers throughout the waste supply
chain, from producers of waste to landfill site operators, and so agents will be
interested in the contents on behalf of a wide range of their clients.
This consultation closes 5 May 2017.
Sanctions to tackle tobacco duty evasion and other excise duty
evasion
A consultation on proposed new sanctions to tackle tobacco duty evasion and other
excise duty evasion.
These consultation closes 10 May 2017.
Draft legislation: the Corporate Interest Restriction CIR (Financial
Statements: Group Mismatches) Regulations 2017
Consultations
Working Together
Fraud on provision of labour in construction sector: consultation on
VAT and other policy
Options to combat missing trader fraud in the provision of labour in the construction
sector are also being consulted on. In particular, the government wants to explore
how a VAT reverse charge might work in the UK’s construction sector. A reverse
charge shifts the responsibility for paying the VAT along the supply chain to remove
the opportunity for VAT to be stolen. The consultation will also ask for views on how
the rules about gross payment status under the Construction Industry Scheme can be
changed to prevent it being abused by criminal gangs.
This consultation closes 9 June 2017.
Non-resident companies chargeable to income tax and non-resident
capital gains tax
The government is currently exploring the case for bringing certain non-resident
companies with UK sourced taxable income and/or the disposal of certain UK
residential property interests, within the corporation tax regime. This consultation also
aims to identify how existing legislation could be adapted to bring about this change.
This consultation closes 9 June 2017.
Proposed provisions to prevent unintended restrictions on transition to the CIR rules.
Making Tax Digital: sanctions for late submission and late payment
This consultation closes 26 May 2017.
The government is seeking views on three possible models for late submission penalties
as part of Making Tax Digital - sanctions for late submission and late payment
consultation. The consultation also provides an update on late payment penalty
interest taking into account the concerns raised from last year’s Making Tax Digital:
Tax Administration consultation.
This consultation closes 11 June 2017.
section continues>
page 11 of 20
Agent Update
Agents and HMRC working together April - May 2017 - Issue 59
Welcome
Tax
HMRC service
Withholding tax exemption for debt traded on a Multilateral Trading
Facility
The government has announced its intention to introduce an exemption from
withholding tax on interest for debt traded on Multilateral Trading Facilities, in order
to make UK wholesale debt markets (that is, those focused on institutional investors)
more competitive. This consultation sets out an outline proposal and seeks views
from interested parties, including exchanges, potential debt issuers and investors, and
their arrangers and advisors, to ensure the design of this exemption is as effective as
possible and without unintended effects.
Consultations
Working Together
Partnership taxation: proposals to clarify tax treatment
The government wants to remove uncertainty and provide clarity for partnerships.
The changes we propose will ensure the tax system fits with modern commercial
practice.
Stamp Duty Land Tax (SDLT): changes to the filing and payment
process
This consultation closes 12 June 2017.
In this consultation, the government invited views on a reduction in the SDLT filing
and payment window from 30 days to 14 days, as well as on the SDLT filing and
payment process generally.
VAT: Tackling fraud on goods sold online - update on split payment
Tackling the hidden economy: conditionality
Your views are welcome on proposals to extract VAT directly from online transactions
at the point of purchase. Some overseas businesses avoid paying UK VAT, undercutting
online and high street retailers and abusing the trust of UK consumers who purchase
goods via online market places. The government has published a call for evidence on
the case for this new VAT collection mechanism which is the next step in tackling the
non-payment of VAT by some overseas businesses selling goods online to UK consumers.
This consultation discussed the principle of conditionality, which would involve
making access to licences or services needed to trade conditional upon tax registration.
Tackling the hidden economy: sanctions
This consultation closes 30 June 2017.
This document summarises responses to the consultation document which made the
case for tougher sanctions and increased monitoring for those who repeatedly operate
in the hidden economy.
Summary of responses
Tax-advantaged venture capital schemes - streamlining the advance
assurance service
Hybrid and Other Mismatches
Summary of substantive changes to guidance resulting from consultation responses.
Double Taxation Treaty Passport (DTTP) scheme review
The purpose of the consultation was to explore whether HMRC should renew and
extend the administrative simplifications of the existing DTTP scheme.
This document asked for views on options for streamlining the advance assurance
service provided by the Small Company Enterprise Centre (SCEC).
Agent Update 59 contains all new open consultations and a summary of new responses
available when this issue was being published, but please check for any that may have
subsequently been issued.
section ends
page 12 of 20
Agent Update
Agents and HMRC working together April - May 2017 - Issue 59
Welcome
Tax
HMRC service
Working Together Team (WTT)
Working Together (WT) is a partnership between HMRC and the six main agent
representative bodies:
•Association of Accounting Technicians (AAT)
•Association of Chartered Certified Accountants (ACCA)
•Association of Taxation Technicians (ATT)
•Chartered Institute of Taxation (CIOT)
•Institute of Chartered Accountants in England and Wales (ICAEW)
•Institute of Chartered Accountants of Scotland (ICAS).
Together we look for ways to improve HMRC operations for the benefit of tax agents,
their clients and HMRC. Members from a range of other Representative Bodies
including; AIA, IAB, ICB, ICPA, IFA, CIMA, CIPFA, CIPP, CPAA, SPA, STEP and
VATPG, also actively participate and contribute to WT. The WTT maintains an
issues register providing details of all widespread issues. These issues are prioritised
by the Professional Bodies (PBs) on the Issues Overview Group (IOG) and the highest
priority ones are monitored by the Joint Initiative Steering Group (JISG). The Issues
Resolution Managers (IRMs) use the register to keep agents in Digital WT (DWT)
meetings up to date with the latest information and news.
DWT Meetings
Continuing our program of jointly hosted digital meetings, the next one will take
place on 26 July, which we will again be broadcasting from the AAT Barbican office,
in London. These meetings are dedicated to the discussion of potential and current
widespread issues, which are documented on the Agent Forum* and available as a live
session during the meeting. The issues continue to be monitored by the IOG, who rate
them in terms of priority.
Consultations
Working Together
*We are planning to roll out a new Agent Forum to replace the existing platform,
currently scheduled for delivery in early June. It will use the same format our Small
Business Forum which was launched in March. Registration will require you to
use your full first forename and surname as your username alongside your email
address. Once access is granted an email will be issued confirming this and providing
instructions on information required for completion of your user profile.
WT Open Issues Register
Following the October meeting with the IOG, the PBs representatives reviewed the
widespread issues. If you want to know more about the issues being discussed at the
IOG meetings or you want to have your say, please contact your PB. The contact
details are on page 21. If you do not belong to one of the PBs listed please send details
to: agent engagement mailbox.
The IOG agreed the following issues as Priority 1:
WT ref
Business area
Issue
WT243
Online
Online Notices of Coding (P2)
WT248
Self-Assessment
Postponements for Payments on Account
WT 249
National Insurance
Class 2 NIC previously paid by Direct Debit
WT250
National Insurance
Class 2 - new issues including voluntary payments
through SA
WT251
National Insurance
Classes 1, 2 & 4 NIC interaction especially
General/Medical Practitioners
section continues>
page 13 of 20
Agent Update
Agents and HMRC working together April - May 2017 - Issue 59
Welcome
Tax
HMRC service
WT243 Online Notices of Coding (P2)
Current Position
WT243.1 Agents unable to view notices of coding online
Where tax codes are issued in advance of the new tax year it is necessary for the
customer to change the tax year drop down in the online viewer in order for these to
be visible. When the bulk issue of codes was completed in March, it could still take
longer for the codes to be viewed, even after an email notification was sent saying
they were available. As further reports have now been received this has been moved
from closed to open.
WT243.6 (Open) Incorrect codes given to clients
We have identified the areas that have caused these issues and they will be fixed
within the coming months. Some of the codes were generated from an HMRC process
that happens once a year and we will be reviewing this process to address these issues.
Incorrect codes were also generated due to the information supplied by employers on
Full Payment Submissions.
WT248 Postponements for Payments on Account
This issue was investigated by our IT partners and a fix was made on 26 January 2017.
If you have cases where this problem has occurred after this date, please email
UTR’s and details of the problem which occurred together with screen prints to:
[email protected]
WT 249 Class 2 National Insurance Contributions (NICs) previously paid by
Direct Debit (DD)
The majority of customers who previously paid Class 2 NICS by DD (1.3m people)
have had their expected liability for 2015-16 year transferred across into SA. A
small number have not, meaning their Class 2 NICs figure will not be pre-populated
on their SA Return. This happened because some customers closed their DD
arrangements down following the last Class 2 NICs payment due for 2014-15 year
(the last DD payment was taken in July 2015).
Consultations
Working Together
HMRC asked all DD customers not to close their own DD as we would do it
automatically. All of the automatically closed accounts were set-up to “collect Class 2
NICs through SA” for the 2015-16 year and this has worked correctly. Those closed
by the customer, or where the DD was refused, did not change to “collect through SA”
and their self-employment was ceased on our systems. These are the cases where the
Class 2 NICs figure is missing from the SA Return. We will need to register them again
for NICs and can do that now over the telephone. Once the registration is completed
their Class 2 NICs figure will be calculated and will be displayed on their SA Return.
This should happen in real time. The business area is looking to include further
information relating to DD payments in future guidance.
WT250 Class 2 NICs - new issues including voluntary payments through SA
Clients that have made voluntary payments into SA to cover their Class 2 NIC
liability, will have them sitting as credits on the SA system. Calls can be made to the
SA helpline for those that were made over 10 days ago. We will try and transfer them
to the NI record and reintroduce the liability onto the NIC system.
In other instances we may transfer the call to the NIC helpline on 0300 200 3500 to
update. We would ask you to encourage your clients to check their NIC record.
WT251 Classes 1, 2 & 4 NIC interaction especially General/Medical Practitioners
The vast majority of customers who now have their Class 2 NICs collected by
Self Assessment (4.2m people) have had their expected liability for 2015-16 tax year
correctly transferred across into SA. If the customer had also paid Class 1 NICs for
2015-16 that would be taken into account when calculating how much Class 2 NIC
is due.
Where a customer’s Class 1 NICs were allocated to their account, after the initial
Class 2 liability had been sent to the SA system, a re-calculation would take place on
NICs system. The revised amount will be broadcast to the SA system and displayed
on the customer’s SA Return.
section continues>
page 14 of 20
Agent Update
Agents and HMRC working together April - May 2017 - Issue 59
Welcome
Tax
HMRC service
For a small number of customers, their Class 1 NICs have been correctly recorded on
our systems, but for an unknown reason those contributions have not broadcast to
the SA system. We believe this issue occurred over a limited number of days during
which some Class 1 information failed to broadcast from one system to another.
For most customers the Class 2 amount in these cases has been re-calculated and the
correct amount displayed on the customer’s SA Return. However, there is an impact
on any Class 4 NICs due as the Class 1 NIC has not been taken into account.
We are working to investigate what has happened and assessing how quickly a
solution can be identified and put into place.
If a call is made to the Contact Centre they will check if the Class 1 NIC is correctly
recorded.
They will correct the client’s record while on the call and confirm this has been done.
The action will take up to 72 hours for the Class 4 figure to be updated.
If Class 1 NIC is not recorded on National Insurance and PAYE Service (NPS) records
record then we will pass your client’s details to another office which will investigate
the record and issue a revenue amendment if necessary.
Consultations
Working Together
The following widespread issues have been closed since those reported in Agent
Update 58
WT050 Processing P11D/S336 Claims (WT050).
WT054 Delays in issuing correspondence.
WT226 PAYE codings (P2) not showing wk1/mth1 indicator.
WT231 CG34 Processing delays.
WT239 Delays reported due to incorrect signal set on client’s accounts
WT242 Completing and saving HMRC online forms - ongoing move to online forms,
full update available on Page 16 Agent Update 58.
WT243.2 (Closed) Agents cannot see non SA clients’ details.
This is part of the system design. We are currently working on having the Agent
Service available. In the meantime customers should provide their agent with a copy
of the P2 notice.
WT243.7 (Closed) Structured email not working well.
WT238 Telephone delays on non-Agent Dedicated Lines (ADL)
The structured email is a standard response where the customer has provided
information on the form which does not match the information we hold on our
systems. We do this to protect the data we hold about customers. We are planning
to decommission the online form in favour of the newer technology available on our
online Agent and Customer accounts. As the contact route available online is attached
to the account, this automatically passes our data security requirements and should
address this issue.
WT246 Transfer of Marriage Allowance within SA.
WT243.8 (Closed) Codes not showing S prefix.
Currently the Business Area are looking to review why in these particular instances,
GP’s and Medical Practitioners are adversely affected.
IOG have agreed the remaining open widespread issues as Priority 2:
WT237 HMRC correspondence including postal delays
This issue was identified and has now been fixed, codes have now been issued.
WT247 Different information regarding the need to complete 2015-16 returns.
section continues>
page 15 of 20
Agent Update
Agents and HMRC working together April - May 2017 - Issue 59
Welcome
Tax
HMRC service
Agent Services (AS)
The pilot of AS commenced for a small number of invited agents on 3 April. Details
of both the Making Tax Digital for Business (MTDfB) and AS pilots were outlined in
Agent Talking Points meetings on 28 and 29 March. Agents wishing to find out more
about the pilots can view both Talking Points meetings online on the Agent toolkits,
digital meetings, webinars page on GOV.UK.
The AS Talking Points meeting outlined the four key steps that an agency will need
to complete to get ready for MTDfB and being able to access new services in their
commercial software. These are:
Step 1: Subscribe to Agent Services to get a new Agent Services Account
Consultations
Working Together
To secure the new GG AS credential and protect the account and client information
agencies will be required to set up 2SV (step 3). When using software to access an
MTDfB service for the first time the agency will be prompted to sign in with their
GG Agent Services Account and undertake 2SV, so they can grant their software
authority to interface with HMRC on behalf of the firm (step 4).
This 2SV process need only be undertaken once, when initially signing in and
granting software authority to access each new MTDfB service. The authority will
usually last for 18 months. This will not affect existing HMRC portal logins. Agents
seeking further information can view the Talking Points on 2SV held on 21 February
on the Agent toolkits, digital meetings, webinars page on GOV.UK.
Step 2: Go through the process of linking existing agent codes to the new Agent
Services Account
Beta trial of HMRC’s Self Assessment (SA) Pre-population Application
Programming Interface (API)
Step 3: Complete 2-Step Verification (2SV) to secure the new Agent Services Account
From April HMRC are commencing beta trials of an ITSA Pre-Population API to
software providers. The API allows agents to retrieve client data used for pre-populating
late SA returns, for the tax year 2015-16. Client data for 2016-17 will be made
available through the API in the summer. The key features and use of the API are
outlined below. Agents should contact their software providers for information on
when the functionality will be available in their individual products.
Step 4: Grant authority for an agency’s software to interact with HMRC on behalf of
the firm.
During the pilot for AS a small number of agents are trialling a series of releases in
April and May. The first trial commenced at the beginning of April and tested step
1: subscription to AS and the creation of a new Government Gateway (GG) Agent
Services Account, setting up an agency record and getting an Agent Registration
Number (ARN). The trial was successfully completed with all components working
well. During May, AS will be testing step 2, linking agent codes to the new Agent
Services Account. This enables a digital look up of agent/client relationships in
HMRC systems so agents will not have to go through the process of reauthorising
clients to see their MTDfB data.
section continues>
page 16 of 20
Agent Update
Agents and HMRC working together April - May 2017 - Issue 59
Welcome
Tax
HMRC service
How to grant authority and secure an API with 2 Step Verification
(2SV)
To use the ITSA Pre-Population API, agents will need to undertake 2SV and grant
authority to their accounting software provider to access their client’s HMRC data.
Authority will need to be granted for each, or group of ITSA APIs, that agents use.
After authority has been granted, it will remain in place for a set period of time typically 18 months. Agents that use a number of GG accounts to access SA data will
need to complete 2SV to secure each GG account.
During the beta trial, agents wishing to access their clients’ SA data through the API,
must sign in with the same GG account which they currently use to access client data
through HMRC online services (e.g. using HMRC Portal). For now, 2SV will only
apply to the GG accounts when accessing these particular APIs. Agents will still be
able to access other HMRC online services without undertaking 2SV.
In the forthcoming months, alterative access to the API will be available to agents
who have subscribed to AS and created a new AS GG account, and Agent Registration
Number (ARN). The benefit is that agents will only need to secure one GG account
for all staff to access the API, instead of potentially securing multiple accounts.
2 Step Verification (2SV)
HMRC takes the protection of customer data extremely seriously and constantly
reviews its processes and procedures to be in-line with the cyber industry standard.
Since the SA Pre-Population API data is sensitive, agents and firms using it must set
up 2SV.
2SV is easy to set up and requires a user to have access to a specific mobile or
landline phone.
Consultations
Working Together
Agents (and firms with multiple employees) accessing an existing GG account need
to think very carefully about which phone (or landline) is linked to the account. The
chosen phone (or landline) will be required to renew authority - though typically this
will not happen until 18 months after the original granting of authority. Should the
designated phone or landline be unavailable when authority expires, users would be
locked out of the API, as no reset option is currently available. HMRC are seeking to
ensure a reset is developed before tokens expire.
Setting up additional log-ins within a Single Government Gateway
(GG) Account
In administering 2SV, it is important to understand that, whilst it is possible to create
additional administrators linked to GG accounts, we strongly recommend this is not
undertaken to access APIs with existing GG accounts. This would create a significant
and irreversible side-effect in that all subsequent clients added to the GG account
would need to be manually allocated to one of the GG account holders linked to
the account.
One of the key advantages to the AS GG account is that one or more administrators
can be added to the account without triggering the burdensome manual allocation
of clients. So, for larger agents, any one of the administrators linked to the
GG account would be able to refresh the token without the need for the agency to
share credentials.
Frequently Asked Questions On 2SV
Can I opt out of 2SV password and access code?
No, the registration of a mobile phone, landline telephone number or authenticator
app is now an essential requirement for accessing HMRC customer data through
HMRC APIs. This significantly raises the security of a GG account.
section continues>
page 17 of 20
Agent Update
Agents and HMRC working together April - May 2017 - Issue 59
Welcome
Tax
HMRC service
Consultations
Working Together
What if I don’t have access to a landline, mobile phone or tablet?
If you do not have access to a mobile phone, landline or tablet you will not be able to
interact with HMRC Online.
What if my HMRC Access Code does not arrive or it does not work?
You should receive your access code by text message to your mobile or by phone call
to your landline as soon as you sign into your tax account but, depending on your
location, it can be delayed for a couple of minutes, so please allow for this. The code
is always 6 digits, only numbers, with no spaces and sent from 60886.
All codes expire within 15 minutes from the time you signed into your account. If this
happens, you can obtain a new code by closing the page and signing back into your
tax account. Please ensure your mobile phone has signal. Your mobile service provider
can also check if the codes are being recognised as spam/premium rate texts and if
appropriate, remove any blocks for you.
When using an authenticator app the code will be received instantly but you only
have 30 seconds to use it. Your app will generate a new code every 30 seconds, if this
happens, you need to use the latest code.
Making Tax Digital for Business (MTDfB)
HMRC launched its MTDfB and Agent Services (AS) pilots on 3 April with a
controlled “go-live” for a small number of invited businesses and agents. For agents,
we outlined details of both our pilots during two Agent Talking Points meetings on
28 and 29 March. Both of these Talking Point sessions were popular and can be
viewed at the agent toolkits, digital meetings and webinars page on GOV.UK.
section continues>
page 18 of 20
Agent Update
Agents and HMRC working together April - May 2017 - Issue 59
Welcome
Tax
HMRC service
Consultations
Working Together
Talking Points
Have you joined our programme of digital
meetings called Talking Points? These include
live presentations from subject matter experts,
from within HMRC in partnership with other
government bodies. They focus on topics of
particular interest to agents, and offer live
Q and A sessions. They are run on the
‘CITRIX’ webinar platform and you do not
need a webcam or microphone to take part.
This year, over 11,000 agents have joined
our meetings to hear about a range of topics,
including: Making Tax Digital, Agent Services
and the recent changes to the VAT Flat Rate
Scheme. These meetings have received very
positive feedback.
If you have already joined Talking Points
meetings and found them useful, then please let
your colleagues know and encourage them to
join us.
Find out more and view recordings of any
meetings you may have missed on GOV.UK
section continues>
page 19 of 20
Agent Update
Agents and HMRC working together April - May 2017 - Issue 59
Welcome
Tax
HMRC service
Top issues raised with the Agent Account Managers (AAMs)
The top five issues dealt with by the AAMs in March 2017 were:
1) SA Correspondence - Progress chasing letters/forms not processed /SA400, SA1
issues received have mainly been querying coding, NICs, Marriage Allowance
2) PAYE repayments - Progress chasing repayment requests made via return/online/
Deeds of Assignment (DOA). Still dominated by DOA issues (form not being
processed correctly so that the 64-8 element is not worked and repayments going
to the client rather than the agent as per the agreement)
3) PAYE correspondence - Progress chasing repayment requests made by DOA/
missing letters. Again, mainly DOA issues where forms have been rejected due
to one being held for another agent already or being incorrectly rejected by the
department due to misinterpretation of guidance
4) Agent maintainer issues - supporting the processing and resolution of outstanding
64-8’s, changes to agent details and DOA, SA correspondence - progress chasing
letters, forms not processed, SA400s and SA1s
5) SA repayments - Progress chasing repayment requests made through returns,
online and post.
If you have a client specific issue please contact the Agent Account Managers Issue
Resolution team.
Consultations
Working Together
National Insurance Contributions (NICs) Application
Programming Interfaces (API)
Working Together Contact information for Professional and
Representative Bodies
AAT Jeremy Nottingham
ACCA Jason Piper
AIA Tim Pinkney
ATT Jon Stride
CIMA
CIOT Stephen Relf
CIPP
IAB Kelly Pike
ICAEW Caroline Miskin
ICAS Charlotte Barbour
ICPA Tony Margaritelli
IFA
VATPG Ruth Corkin
If you are not a member of a professional body, please contact the
agent engagement mailbox.
section ends
page 20 of 20