HMRC Stakeholder Digest – 28 September 2022

27 Sept 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 updates that we’d be grateful if you could share with your clients, customers, or members, and other HMRC news.

Get ready for the Customs Declaration Service

From 1 October 2022, businesses will need to make all their import declarations using the Customs Declarations Service.

To help businesses prepare, help and support is available on GOV.UK as well as on YouTube.

If importers know they can’t be ready for that date, they should first consider using a customs agent who can help them. They can search the register of custom agents and fast parcel operators on GOV.UK.

We are also allowing CHIEF badge holders to seek permission for a temporary extension to use this service beyond 30 September, if they have a clear business reason.

They will need to fill in the online application form to ask to continue to use Customs Handling of Import and Export Freight (CHIEF) from 1 October 2022 on GOV.UK.

New support for businesses and public sector organisations facing rising energy bills

Last week, the government unveiled a new support scheme that will see energy prices for non-domestic energy cut, to support growth, to help prevent unnecessary insolvencies and to protect jobs.

Through the Energy Bill Relief Scheme, the government will provide a discount on wholesale gas and electricity prices for all non-domestic customers. This support will be equivalent to the Energy Price Guarantee put in place for households.

Key facts:

  • available to all UK businesses, the voluntary sector, including charities and the public sector whose current gas and electricity prices have been significantly increased in light of global energy prices
  • it will apply to fixed contracts agreed on or after 1 April 2022, as well as to deemed, variable and flexible tariffs and contracts
  • it will apply to energy usage from 1 October 2022 to 31 March 2023, running for an initial six month period for all non-domestic energy users.

Business customers do not need to act or apply to the scheme to access the support. This support will automatically be applied to energy bills. The savings will be first seen in October bills, which are typically received in November.

More information about the Energy Relief Scheme is available on GOV.UK.

Making Tax Digital for VAT

From 1 November, businesses who file their VAT returns on a quarterly and monthly basis will no longer be able to submit them using their existing VAT online account, unless HMRC has agreed they are exempt from Making Tax Digital (MTD).

VAT registered businesses must now sign up to Making Tax Digital and use MTD-compatible software to keep their VAT records and file their VAT returns. 

We are contacting businesses before November, to make sure they know how to do this and where to find further support.

Further help and support on Making Tax Digital can be found on GOV.UK.

Signing into your Personal Tax Account from 3 October

To ensure our customers’ data is protected, anyone signing into their Personal Tax Account needs to use their Government Gateway user ID and password.

Most customers already do this, but for those with another set of sign in details linking to our Self Assessment service, from 3 October they will be given the option to access their account and Self Assessment using the same sign in details.

Support is also offered to customers who can’t complete the online process.   

Alcohol Duty Reform: consultation response and draft legislation published and small producers survey launched 

On 1 August 2023 the government will introduce new alcohol duty rates based on a product’s alcoholic content (ABV), whilst freezing alcohol duty rates from 1 February 2023. The new alcohol duty system also includes:

  • an easement for the wine industry running for 18 months (until 11 February 2025)
  • amended qualifying criteria for draught relief (permitting smaller container sizes, to support smaller businesses in the hospitality industry)
  • a small producer’s relief that extends the benefits of Small Brewers Relief to producers in other categories.  

The response to the consultation on the new alcohol duty system, draft legislation and accompanying consultation, as well as a Small Producer Relief Survey have now been published. We look forward to continuing our engagement with businesses to ensure these reforms achieve their aims.

If you have any feedback on the draft legislation, email the HMRC Alcohol Policy Team at [email protected].