HMRC Stakeholder Digest – 1 September 2022

Please see the following message which we are sharing on behalf of HMRC:

This HMRC Stakeholder Digest provides a round-up of our latest updates that we’d be grateful if you could share with your clients, customers, or members, and other HMRC news.

Eligible tax credits only customers set to receive first Cost of Living Payment

Most customers receiving both tax credits and other eligible benefits will have received their first Cost of Living Payment from the Department for Work and Pensions in July.

Eligible customers on tax credits only will receive their first payment from us between 2 to 7 September. All payments go automatically into the bank account where they receive their tax credits payments.

If customers believe they're eligible but haven’t received a payment by these dates, they should wait until 16 September at the earliest to contact us, to allow time for their payment to be processed by their bank, building society or credit union.

We won’t be able to provide customers with any further information before this date.

The second payment will be made in the winter.

We have also developed a toolkit to help you support your networks with the cost of living.

Move to Customs Declaration Service: one month to go

Time is running out for businesses who make import declarations to move to the Customs Declaration Service, with just one month to go.     

From 1 October 2022, the Customs Handling Import and Export Freight (CHIEF) system will close for imports and businesses will need to make all import declarations using the Customs Declaration Service.  

If businesses make import declarations themselves, they should follow the steps in the declarant checklist to make the move.

If they know they can’t be ready or need help to make the move, here are details of customs agents who can help them.  

If they use a customs agent, they still need to take urgent action by following the steps in the trader checklist.

If a business is VAT registered, they may already be using the Customs Declaration Service for VAT purposes. They should check with their organisation to find out if they’re already subscribed and make sure we have the right contact details for their business.

Change to VAT penalties and interest charges

New penalties will start from next year for businesses who submit VAT returns late or pay late.

For VAT periods starting on or after 1 January 2023, the default surcharge will be replaced by these new penalties.

We’re also making changes to how VAT interest is calculated.

If businesses submit a nil or repayment VAT return, they will need to make sure it is submitted on time. Unlike the current default surcharge, under the new late submission penalties, if a nil or repayment return is submitted late, penalty points and a £200 fine may apply.

We’ll continue to help make businesses aware, and more information about the upcoming changes to VAT penalties and VAT interest charges are available on GOV.UK.  

Plastic Packaging Tax resources

The Plastic Packaging Tax (PPT) was introduced on 1 April 2022 and aims to incentivise businesses to use recycled plastic in the manufacture of plastic packaging.

We have the following resources to assist your networks with the tax and would be grateful if you can share these with them:

• guidance - visit the collection page for the latest guidance, including information on when and how to register for PPT. All core guidance on PPT is also available in Welsh                                  
• step-by-step guides - read to learn about what is in scope, who is liable and who needs to register            
  • Check if you need to register and are liable for PPT (Welsh version)
  • Check if your plastic packaging is in scope of the PPT (Welsh version)                                                                                                   
• webinars – email updates, videos and webinars for tax agents and advisors on Plastic Packaging Tax are available on GOV.UK                   
• flyer - for a reminder of the steps to take and all return and payment dates for 2022-23 download our PPT flyer.

Professional Standards Committee

The Professional Standards Committee (PSC) meets quarterly to oversee how we administer the tax system and apply policies in accordance with our values.

The July meeting discussed:

• working with the tax profession to build trust in the tax system
• progress on the Tax Admin Framework Review (particularly in relation to data and information usage and collection)
• delivery of our strategic objectives and their impact on trust
• delivering fair outcomes for customers
• progress on the Trust Plan.

A full summary of the July meeting and earlier PSC meetings are available on our ‘Our governance’ pages on GOV.UK.

New improvements to the HMRC app

The HMRC app has been updated and improved to include quick and easy ways for users to make a Self Assessment payment and get their employment details (such as income and employment history) going back five years.

They can have instant access to their employment and income history, National Insurance number and tax codes all at a touch and can also print and download this information to share if needed, meaning they don’t have to call us or wait for it to come in the post.

To showcase the simplicity and usefulness of the app we have created a series of ‘how to use the app’ videos on YouTube, where you can find out how to confirm your employment details and make a Self Assessment payment on GOV.UK.