HMRC Stakeholder Digest - 23 February 2023

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.

Updates

HMRC Stakeholder Conference 2023

We held our annual stakeholder conference last Thursday, bringing together more than 200 representatives from across the tax, customs, and accountancy ecosystem.

Creating Solutions Together was the theme for the day, as we worked with our key stakeholders to identify opportunities to work together to support our customers and address shared challenges.

We will provide a further update in March, setting out the progress that we have in delivering against the opportunities identified in the conference’s wide ranging interactive workshops.

The Financial Secretary to the Treasury’s welcome to the event, as well as Jim Harra and Angela MacDonald’s keynote speeches are available on HMRC’s YouTube channel for you to view and share. 

Tax Credits Ltd stopped from being a tax repayment agent

Tax Credits Ltd (TCL) has been stopped from trading as a tax repayment agent for serious anti-money laundering breaches, making it a criminal offence for them to continue trading in this capacity. 

We found that TCL had committed breaches of the Money Laundering Regulations (MLR), which are predominately designed to prevent businesses being exploited by criminals to launder money.  

We will directly refund around 11,000 TCL clients whose claims had been paused during our investigations into TCL.

We will contact all affected customers by the end of March to explain their refund, and refunds will be made automatically. 

Budget Payment Plan available for Self Assessment customers

Self Assessment customers whose payments and returns are up to date have the option to start a Budget Payment Plan.

This allows them to make regular advance payments towards their Self Assessment tax bill. 

Customers can use their HMRC online account to set up a plan and pay their Self Assessment tax bill on GOV.UK. They can decide the weekly or monthly amount they want us to collect, choose to amend their payment amounts and suspend payments for up to six months as well as cancelling the plan at any time.

The Budget Payment Plan does not mean customers can delay payment beyond the due date. They will need to ensure that any balance still owed after subtracting their budget payment plan payments is paid off by the due date to avoid penalties or interest.  

Making regular payments reduces what your clients and members will have to pay on 31 January and 31 July deadline. 

Changes to VAT penalties for late filing or payments

On 1 January 2023 we introduced new, fairer penalties for submitting VAT returns or paying VAT late, replacing the default surcharge.  

These changes apply to everyone who submits VAT returns, including customers who submit nil or repayment returns.  

We’ve also made changes to VAT interest charges, which will bring VAT in line with Income Tax Self Assessment (ITSA) and provide consistency across taxes.

The way we calculate interest on late VAT payments, and repayments of VAT that we owe businesses, has also changed. These changes apply for VAT periods starting on or after 1 January 2023.  

To avoid penalties, businesses must submit and pay their VAT liabilities on time.  

Your clients and members can find out more about changes to VAT penalties and interest and read the full press release on GOV.UK.

Quarter three performance data update

On Thursday 9 February we published our performance data for quarter three of financial year 2022 to 2023 and monthly performance data for December 2022 on GOV.UK.

The performance update for quarter three focuses on our digital improvements, how we are how we are dealing with our customer service standards, and our approach to debt and compliance.

The monthly performance data for December 2022 includes figures for our customer service contact volumes and performance against our customer service performance measures.  

Reminders

Apprentices can use the HMRC App to support their applications  

Following on from the success of National Apprenticeship Week earlier this month, we know many people will be looking to launch a new career or apply for their first job. 

We want to play our part in helping make applying for an apprenticeship quick and easy. We know that one of the causes of delay for people has been the need to access their National Insurance number to complete their applications. This previously involved asking us to send it by post which could take up to 15 days. In response, we have now made this available instantly through the HMRC App, meaning they will be able to complete their applications and start their new career faster.

The app is available to download through the App Store for iOS and Google Play Store for Android. 

Please share this information with your clients and members to help support apprentices with their applications.  

Marriage Allowance – couples could save up to £252 a year on their tax bill

Married couples and those in civil partnerships could save up to £252 a year on their tax bill and we want to make sure that they are aware of this benefit.

To benefit from Marriage Allowance, the following must apply:

• you’re married or in a civil partnership
• you do not pay Income Tax, or your income is below your Personal Allowance (usually £12,570)
• your partner pays Income Tax at the basic rate  

They can apply for Marriage Allowance on GOV.UK and use our free online calculator to find out how much tax they could save.

Shared on behalf of the Valuation Office Agency

Business rates valuation - 2017 rating list closes 31 March 2023

Your clients and members have until 31 March 2023 to check the information held about their property on the 2017 rating list is correct and let the Valuation Office Agency (VOA) know if it isn’t. 

If a property is in England, your clients and members will need to set up a business rates valuation account and claim their property to make a check on GOV.UK. 

The closure of the 2017 list means that there are only limited circumstances in which further amendments may be made - these are set out on the Business rates list closes soon page on GOV.UK. 

Consultations

Alcohol Duty review – share your views by 9 April 2023 on the proposed secondary legislation 

Stakeholders have until 9 April 2023 to submit their views on the secondary legislation which will come into effect on 1 August 2023. 

Have your say by emailing HMRC at the address published on the consultation page on GOV.UK