HMRC Stakeholder Digest - 24 May 2024

23 May 2024

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

Time is running out to move all exports to the Customs Declaration Service

There is now less than a week to move all export declarations from our Customs Handling of Import and Export Freight (CHIEF) system to Customs Declaration Service (CDS).

Businesses who use a third party agent to make declarations on their behalf should check that their agent has everything they need to meet the 4 June deadline. 

After this date, businesses will no longer be able to submit new customs declarations through CHIEF, unless we have given them permission.

For businesses who use a third party to make declarations on their behalf, we are advising that they check that the third party has everything they need to meet the 4 June deadline. 

Why now is a great time to submit tax returns

Tax returns for 2023 to 2024 can be submitted any time ahead of the January deadline. We strongly encourage our customers and tax agents to submit tax returns well before the deadline for the following reasons:

  • doing tax returns now doesn’t mean payment is made now, the payment deadline is still 31 January 2025
  • our customers can find out what they owe (if anything) which can help them to make informed decisions about their finances
  • if customers can’t pay their tax bill, then they’ll know in advance and can set up a Budget Payment plan or a Time to Pay arrangement with us
  • finding out earlier if too much tax has been paid means that a refund can be issued sooner
  • getting tax returns done early avoids the risk of getting a penalty, and means that customers can concentrate on the important things in life
  • it avoids last minute stress and rush - and if something goes wrong, it will be easier to get help in our quieter months when there is less demand on our customer services
  • the tax return can be used as proof of income when applying for a loan, mortgage, re-mortgage or when claiming benefits.

Please share the benefits of submitting tax returns early. More information on early filing can be found in our 'File your Self Assessment tax return early' article on GOV.UK.  

Updates to HMRC’s Standard for Agents

An updated version of the HMRC Standard for Agents was published on GOV.UK on Friday 17 May 2024.

The Standard has a new layout and some minor clarifications. It remains aligned with Professional Conduct in Relation to Taxation (PCRT), and the professional bodies that maintain PCRT have been consulted.

Online voluntary National Insurance payment service launches 

It’s now easier for people to check for and fill gaps in their National Insurance record to increase their State Pension, using an enhanced online service that we launched jointly with the Department for Work and Pensions (DWP) in April.

Customers can check their State Pension forecast, check if they’re eligible, and if they identify gaps, they can use the online service to make voluntary contributions on GOV.UK.

Most people with gaps will be able to see which years they could fill, how much it costs, how paying voluntary contributions can boost their State Pension, and then pay online, should they decide to do so.  

The majority of customers can use the online service without needing to phone us or DWP, including those living abroad who want to pay voluntary contributions for years when they were resident in the UK. 

People can find out more about the service on GOV.UK at the link above, or via links in their Personal Tax account or on our HMRC App. 

The enhanced online service is not available to customers who are

  • already receiving their State Pension
  • Self-employed
  • living outside the UK with gaps incurred while working abroad
  • within 8 days and 4 months of, or over, State Pension age
  • people whose records are being updated.

Anyone unable to use the enhanced service can pay voluntary contributions by calling the DWP and HMRC helplines.

Deadline for paying voluntary National Insurance

  • men born after 5 April 1951, or women born after 5 April 1953 have until 5 April 2025 to pay their voluntary National Insurance contributions (NICs) to make up gaps from 6 April 2006
  • the 5 April 2025 deadline is for paying voluntary NICs for tax years 2006-2007 to 2017-2018
  • after the deadline people will only be able to fill gaps going back six years.

Changes to Income Tax or PAYE repayments process  

Since 30‌‌‌ ‌‌April 2024, if a paid tax agent submits R40 claims on behalf of a client, and they want to receive a repayment on behalf of that client, they will need to provide their agent reference number (ARN) in the required field when they are submitting the form. Agents are provided with an ARN after they create an agent services account. 
 
Failure to add their ARN to the HMRC version of the nomination section of the form, on or after this date, will result in repayments for valid claims being paid directly to clients and not the nominated third party.

Consultation on the VAT Treatment of Private Hire Vehicles  

The Government has published a consultation on the potential tax impacts of the recent High Court rulings on the private hire vehicle (PHV) sector. This consultation also invites views on potential government interventions that could help to mitigate any undue adverse effects on the PHV sector and its passengers.

This consultation closes at 11:59pm on 8 August 2024. More information about the Consultation on the VAT Treatment of Private Hire Vehicles is available on GOV.UK.