HMRC Stakeholder Digest – 20 July 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 news and updates, which we’d be grateful if you could share with your clients, customers, or members.

HMRC’s Annual Report and Accounts 2021-22

On Monday (18 July 2022) we published our Annual Report and Accounts for 2021 to 2022, along with our Charter Annual Report 2021 to 2022, performance data for quarter four and monthly performance data for March 2022.

These latest figures show that HMRC generated a record £731.1 billion in total tax revenues in 2021 to 2022, protected £30.8 billion in additional tax by tackling avoidance, evasion and non-compliance and brought down our debt balance by 40% from its 2020 peak at the height of the pandemic.

We did this alongside helping 10.3 million customers to complete their Self Assessment returns, supporting more than 12 million children through Child Benefit payments, protecting 11.7 million jobs through the Coronavirus Job Retention Scheme, and supporting thousands of traders with the introduction of new UK border and customs arrangements.

Diverting resources to the COVID-19 support schemes and essential tax and tax credits services meant that many of our customer service levels were not where we would wish them to be, with some customers and agents experiencing delays when dealing with us. We’re sorry about this and we’re fully focused on addressing these issues. We’re making solid progress back towards normal operating levels.

The current challenging economic outlook means we expect to see continuing pressure on our services for some time, but we’re focused on continuing to recover our customer services, compliance yield and debt balance in the remaining quarters of this year.

Legislation Day

The Government published draft legislation today for a number of potential Finance Bill 2022-23 measures, alongside responses to consultations and two new consultation documents.

Today’s announcements largely build on policies announced at Autumn Budget 21 and Tax Administration and Maintenance Day last year. They support our vision to be a trusted, modern tax and customs department – one that’s fit for the challenges and opportunities of the 21^st century.

New consultation documents

Two new consultation documents were published today.

We are seeking your views (by 30 September 2022) on several policy and IT design options to digitalise business rates. Digitalising Business Rates: Connecting business rates and tax data sets out options to join up existing tax data with business rates data held across government. This is one aspect of the government’s wider aim to drive modernisation and innovation in the tax system to help support businesses and individuals when most needed.

Improving the data HMRC collects from its customers proposes a number of potential options for improving the range of data HMRC collects to provide better outcomes for businesses and taxpayers. The consultation sets out six core new data options and we look forward to receiving your responses by 12 October 2022.

Summary of response documents

Today’s announcement includes the publication of responses to the following consultations:

• Income Tax Self Assessment (ITSA): registration for the self-employed and landlords asked whether bringing forward the point at which taxpayers identify themselves to HMRC would help achieve these goals.
• Helping taxpayers get offshore tax right invited views on how HMRC can help taxpayers get their offshore tax right.
• Preventing and collecting international tax debt sought views on how HMRC can better prevent and collect international UK tax debt. 
• Corporation Tax: response to accounting changes for insurance contracts asked for feedback on the design of tax regulations which will apply to accounting periods beginning from 2023 to deal with a change in the way insurance contracts are accounted for.
• UK implementation of Pillar 2 considered the implementation of one aspect of the agreement to reform the international tax framework in response to the challenges of digitalisation.

The final two summary of responses are published alongside draft legislation.

Draft legislation

Draft legislation was also published for a number of potential Finance Bill 2022-23 measures.

We appreciate your continued support in working with us to design a tax system that is flexible, resilient and responsive and welcome your input into the consultations and draft legislation published today.

Less than three months to move across to the Customs Declaration Service

The last day businesses will be able to make import declarations on the Customs Handing of Import and Export Freight (CHIEF) system is 30 September 2022. To continue importing goods, from 1 October 2022, businesses will need to make import declarations on the Customs Declaration Service. Businesses must urgently start taking action to move across to the Customs Declaration Service. 

CHIEF closed for new importer registrations on 5 July 2022 and CHIEF’s training service will also be closed from 10am on 26 July 2022. If service users have an exceptional need to use the CHIEF training service, they can make an application to [email protected] with the subject line ‘CHIEF TRAINING SERVICE’. 

We have online support to help your members or clients make the move, including step-by-step checklists on GOV.UK and ‘how to’ videos on YouTube.

Cost of living support payments

Millions of households receiving certain benefits, including tax credits, are eligible for a Cost of Living Payment of up to £650, paid in two lump sums of £326 and £324. 

For customers receiving both tax credits and other eligible benefits, they’ll be getting payments now from DWP. 

For those customers only on tax credits and who are eligible, HMRC will issue payments automatically in the autumn.  

We’ll contact customers who are eligible beforehand, to let them know the payment is coming. The later payment date for these customers is to avoid duplicate payments with DWP. 

Customers do not need to contact us or apply, as payment is automatic. If they do contact us, we’ll be unable to provide more information as everything they need will be on GOV.UK and in the letter we send before payment.

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

Government Gateway – GB driving licence added as additional form of evidence

We’ve recently added Great Britain (GB) driving licences as an additional form of identification, helping more of our customers access our digital services. Northern Ireland driving licences can already be used for this.

To confirm their identity online, customers must select two items from the following:

• tax credit claim details  
• P60 or most recent payslips  
• UK passport details   
• information held on their credit file (such as loans, credit cards or mortgages)  
• Self Assessment tax return from the last 3 years  
• GB or Northern Ireland driving licence

As a reminder, customers should never share their HMRC login details with anyone. This will help keep them safe from fraud. 

More than 33,000 customers used the HMRC app to renew their Tax Credits this year

More than 33,600 customers have successfully used the HMRC app to renew their tax credits claim so far this year, a 39% increase on last year. 

Tax credits help working families with targeted financial support – the 31 July deadline is quickly approaching, so it is important customers act now to renew before the deadline to ensure their payments don’t stop.

The app is free and simple to use and allows direct access to tax credits at the touch of a button. There are many benefits of the fully secure app, which can be used on any smartphone or tablet, at any time, eliminating the need to call us and helping customers to save time and money.

Customers using the HMRC app can:

• renew their tax credits
• make changes to their claim
• check their tax credits payments schedule, and
• find out how much they have earned for the year

False fraud representation case – Bernard Charles Ecclestone

The Crown Prosecution Service has authorised the charging of Bernard Charles Ecclestone with fraud by false representation, following an HMRC investigation.

This follows a complex and worldwide criminal investigation by our Fraud Investigation Service. The criminal charge relates to projected tax liabilities arising from more than £400 million of offshore assets which were concealed from HMRC.

The first hearing in the case is expected on 22 August at Westminster Magistrates Court.

Puerto Rican Bank – hundreds of UK customers to be investigated

HMRC is investigating hundreds of UK customers of a Puerto Rican bank that has been suspended from operating by the country’s financial regulator.

The Office of the Commissioner of Financial Institutions of Puerto Rico issued a Cease-and-Desist order on Euro Pacific Bank. The bank had been at the centre of a global investigation by the Joint Chiefs of Global Tax Enforcement (of which we are a founding member) for suspected tax evasion.

UK individuals linked to the bank are being urged to contact us to make good on any tax liabilities.

They can make a disclosure through the Worldwide Disclosure Facility.