HMRC Stakeholder Digest - 22 February 2024

22 Feb 2024

Please see the following message from HMRC, which we are sharing for information:

The 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.

Latest news and updates

1. Record 11.5 million tax returns submitted by the deadline

A record-breaking 11.5 million taxpayers submitted their Self Assessment tax returns for the 2022 to 2023 tax year by midnight on 31 January. Over 97% of these were completed online.

Anybody who has not yet submitted their tax return or paid their tax should act quickly. Penalties and interest are charged for failure to meet the deadline.

Anybody who is charged a late filing penalty and feels they should not have been asked to complete a tax return, or that they have a reasonable excuse for filing their return late, should go to GOV.UK to find out how to appeal the decision.

A round up of Self Assessment 2024 can be found in our latest press release on GOV.UK.

2. Change to the R40 repayment claim form – nominating an agent to receive the repayment

From 30‌‌‌ ‌‌April 2024, all tax agents submitting an R40 repayment claim on behalf of their clients will need to use the HMRC version of the nomination section on the new standard form and include their agent reference number (ARN). Failure to do this will result in repayment being made directly to the client, not the agent.

Agents can start using the updated R40 form immediately.

More information about submitting an R40 repayment claim, as well as a copy of the new standard HMRC form can be found on GOV.UK.

3. Changes to forms for claiming tax relief for job expenses and applying for Marriage Allowance – nominating an agent to receive the repayment

Agents submitting a form to claim tax relief for job expenses (P87) or a Marriage Allowance repayment claim (MATCF) on behalf of their clients, and who want to receive the repayment directly, will need to use the new standard HMRC forms from 26 February 2024.

The new forms are now available on the P87 and MATCF pages on GOV.UK.

4. Publication of Tax Administration Framework Review Document

The government has published two documents on GOV.UK as part of the Tax Administration Framework Review (TAFR):   

These documents represent the next steps in delivering the government’s commitments to reform areas of tax administration that are most important to our customers, agents and HMRC.

5. Changes to reporting income from self-employment and partnerships

From April 2024, sole traders and partners in a business will have to report their profits on a tax year basis, if they don’t do so already.  To increase awareness of this, also known as basis period reform, HMRC has written to unrepresented customers to provide information and signpost a range of support.

A video to help explain the changes has been released on YouTube, and further guidance on income tax: basis period reform has been published on GOV.UK.

6. Marriage Allowance – couples can save up to £252 a year on their tax bill

Some couples can save up to £252 a year on their tax bill by claiming Marriage Allowance.

To benefit from Marriage Allowance, the following circumstances must apply:   

  • the couple are married or in a civil partnership
  • one person does not pay Income Tax because any income they have is below their tax-free Personal Allowance (usually £12,570)
  • their partner pays Income Tax at the basic rate

More information about how to apply for Marriage Allowance, as well as the free online calculator to find out how much tax could be saved, is available on GOV.UK.

7. Classification of double cab pickup vehicles

We updated our guidance on the tax treatment of Double Cab Pick Ups (DCPUs) on Monday 12 February following a 2020 Court of Appeal judgment. The guidance had confirmed that from 1 July 2024 DCPUs with a payload of one tonne or more would be treated as cars rather than goods vehicles for both capital allowances and benefit-in-kind purposes. 

This guidance has now been withdrawn following the government’s announcement that it will be legislating to ensure that DCPU vehicles continue to be treated as goods vehicles.

While the government consults on the draft legislation, DCPUs with a payload of one tonne or more will continue to be treated as goods vehicles rather than cars. The legislation will be introduced in the next available Finance Bill.

More information can be found in our press release on GOV.UK.

8. New standards for agents representing business rates and Council Tax payers

The Valuation Office Agency (VOA) has a new set of standards that apply to all agents representing customers on business rates and Council Tax.

The standards encourage good practice and set clear expectations of agents who are not members of a professional body.

The standards do not exceed those in professional bodies’ codes of conduct. The VOA consulted agents and professional bodies when writing the new standards.

The full VOA agent standards and VOA guidance on choosing an agent are available on GOV.UK for you to share with your clients or members.

Messaging on behalf of other government departments

9. Helping employers prepare for April’s changes to flexible working law (on behalf of the Department for Business and Trade)

From 6 April 2024, employers will need to change how they manage flexible working requests from employees.

All employees have the legal right to request flexible working. From 6 April, they will be able to make a statutory request to make a permanent change to their contract from their first day of employment.

Working flexibly enables opportunities to work that suits employer and employee needs. It goes beyond simply working from home. Options are wide-ranging, from job sharing and compressed hours, to flexitime and annualised hours.

Offering flexible working options can benefit businesses in many ways, including; increased retention rates, a higher number of job applicants and reduced absence rates.

More information about flexible working is available on GOV.UK.