HMRC Stakeholder Digest - 26 September 2024
Please see the following message from HMRC, which we are sharing for information:
The HMRC Stakeholder Digest provides a monthly round-up of our latest news and updates. We’d be grateful if you would consider sharing relevant information with your clients, customers, or members.
Chancellor unveils package to deliver on government plans
Earlier this week, the Chancellor outlined key initiatives to deliver on the promises of the new government. HMRC will soon launch a consultation on electronic invoicing (e-invoicing) to encourage its wider adoption among UK businesses. The consultation will gather business input on how HMRC can support investment in this area.
The Chancellor also introduced plans for a Digital Transformation Roadmap. This roadmap will outline HMRC’s vision to become a digital-first organisation, ensuring digital inclusion and support for customers who cannot yet engage digitally.
Further details about the Chancellors' package to deliver on promises is available on GOV.UK.
Register for Self Assessment by 5 October
It's time to remind members of the public that they should register for Self Assessment by 5 October if they need to complete a tax return for the 2023 to 2024 tax year, and they've not done one before.
An online tool is available for people to check if they need to send a Self Assessment tax return and register on GOV.UK.
Anyone who has previously completed a Self Assessment return, but no longer needs to, should let us know, otherwise, they will continue to get reminders and may be charged a penalty for not submitting a
tax return on time.
Guidance and support
Helpful guidance is available on YouTube that shows how to stop Self Assessment using our online services.
Information about registering, including the top five myths debunked about Self Assessment, is available on GOV.UK.
File paper Self Assessment returns by 31 October 2024
The deadline for filing paper 2023 to 2024 Self Assessment returns is midnight on 31 October 2024. Customers who file online have longer - until 31 January 2025.
Basis Period Reform – reporting on a tax year basis
Sole traders and partners in a business will have to report their profits on a tax year basis from April 2024, if they don’t do so already. This is known as Basis Period Reform.
Customers can reduce their reported profit if it covers more than 12 months using the Overlap Relief Figure. This is also called ‘transition profit’, and it can be spread over the following years, up to the tax
year 2027 to 2028.
We have launched an online service for customers to request an Overlap Relief Figure on GOV.UK.
For more information, read about the changes to reporting income from self employment and partnerships on GOV.UK.
Anyone who is still awaiting an overlap relief figure at the Self Assessment filing deadline should file their return on time using provisional figures and amend it when the correct figure is
received.
Further help with Basis Period Reform is available on GOV.UK.
Home Responsibilities Protection - check your State Pension is correct
Tens of thousands of people who claimed Child Benefit between 1978 and 2000 could be receiving too little in State Pension payments due to Home Responsibilities Protection (HRP) not being included on their National Insurance (NI) record.
It reduced the number of qualifying years a person with caring responsibilities needed to receive the full basic State Pension. HRP was replaced by National Insurance credits in 2010.
However, if someone claimed Child Benefit before May 2000 and did not provide their NI number on their claim, HRP might not have been included on their NI record. This could have resulted in them receiving a lower State Pension entitlement than they should have.
We are actively working with the Department for Work and Pensions (DWP) to contact customers that might be affected, encouraging them to check their eligibility, and providing information on how to make a claim for missing HRP.
Guidance about how you can check to see if they're eligible and how to make a claim is available on GOV.UK.
Further HRP stakeholder communications resources
We’ve worked with voluntary and community sector organisations on a Home Responsibilities Protection communication resources toolkit. This is available on GOV.UK.
We have also published a short video about HRP on social media which explains and signposts to further guidance.
These resources can be used by organisations to support individuals to check their eligibility and make a claim.
What an authorised agent can do on a client’s behalf
We have improved the letters we send to customers when they authorise an agent to act on their behalf.
The changes are designed to make it clearer to customers what actions an agent will be able to carry out for them, once authorisation is complete. These reflect the changes previously made on GOV.UK.
The letter also makes clear that the customer remains responsible for their own tax affairs.
We have given agents' professional bodies and agents advanced notice that we are doing this.
Helping contractors steer clear of tax avoidance
Our ‘don’t get caught out’ campaign helps contractors spot the signs of bad tax advice and understand their pay arrangements.
They can steer clear of tax avoidance schemes and learn how to:
- Recognise, and protect themselves against, tax avoidance.
- Get help to get out of a tax avoidance scheme
- Report a tax avoidance scheme to HMRC
Details of tax avoidance schemes and promoters to steer clear of are also published on GOV.UK. This is not a complete list of all tax avoidance schemes on the market. HMRC never approves tax avoidance schemes for use.
We have also published a short video on the risks for contractors who are using umbrella companies on YouTube.
Publication of the Administrative Burden Advisory Board 2024 report
The Administrative Burdens Advisory Board (ABAB) have published their Tell ABAB report 2023 to 2024 on GOV.UK.
The report details the responses to April’s Tell ABAB Survey, identifying themes and priorities. This year had a record 10,052 completed surveys, up from 7,500 responses to the 2023 survey.
ABAB is passionate about listening and understanding the needs of small business customers. Board members come from a range of businesses and professions, and their goal is to support HMRC to make the tax system simpler for small businesses.
We encourage you to share the report with colleagues.
If you would like to comment on the report or help ABAB with their work, please contact [email protected]
Messages on behalf of Other Government Departments
Changes to the UK border and immigration system - transition to eVisas
The Home Office is replacing physical immigration documents with a digital proof of immigration status (eVisa).
eVisas are a key part of delivering an immigration system which is more digital and streamlined. They will streamline customer experience by automatically sharing relevant immigration status information with other government departments.
People in the UK who currently use a biometric residence permit (BRP) to prove their immigration status should take action now to get access to their eVisa. They can also find out about the support available on GOV.UK.
Those who use passports containing ink stamps or visa vignette stickers to prove their immigration status are also encouraged to get access to their eVisa on GOV.UK, but can continue to use their physical documents
to prove their status.
The Home Office have produced an eVisa Partner pack which has a range of messages that can be shared and is available on brandworkz.com. The information in the pack can be used to communicate through your relevant channels.