HMRC Stakeholder Digest - 30 January 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. One day to go until the Self Assessment deadline

There's one day to go until the 31 January deadline for filing online 2022/23 tax returns and paying any tax owed – so time is running out for Self Assessment customers who have not yet submitted their return.  

There’s plenty of help online for Self Assessment on GOV.UK. This includes our Digital Assistant, over sixty YouTube videos, help sheets, guidance, tools, and forums where people can ask questions about Self Assessment. We ask people to try to use these sources of help to answer their query, if possible, so our helpline and webchat advisers can focus on helping those whose query cannot be answered online. 

Please encourage your clients and members who need to do their tax return, not to delay, and file their tax return today. Those who miss the deadline could face a £100 penalty.

2. Update on Customs Declaration Service timelines

We’re working closely with border industry partners to complete final technical readiness to enable exporters to move to the Customs Declaration Service (CDS).

From February, we expect that declarations using inventory-linked airports can be submitted through CDS.  

From March, we expect that declarations using inventory-linked maritime locations can be submitted through CDS. Most businesses will be able to move to using CDS by 30 March 2024. 

Customers unable to fully migrate by the deadline will be given a period of three months from when HMRC tell them they can migrate, to do so.  

We’ll be in touch with businesses submitting export declarations with further details around when migration will be commencing.

Further guidance about the Customs Declaration Service is available on GOV.UK.

3. Claiming tax reliefs for work costs directly from HMRC

We are currently reminding employees that they might be eligible to claim tax relief to help towards some types of work costs if they aren’t covered by their employer.

Common tax-deductible work costs range from uniform and travel expenses to professional fees and subscriptions.

The average claim is currently around £125.

Making a claim online with HMRC is fast, free and easy. It’s also the only way employees can make sure they get every penny they’re owed – unlike using tax refund companies, which typically charge fees.

To support your clients and members on how to make an eligible claim, and help them steer clear of any unnecessary fees, take a look at the work expenses and making a claim communications resources pack on GOV.UK.

This toolkit has helpful posters and messaging you can share on your organisation’s channels, such as staff intranets and social media.

4. HMRC / Advertising Standards Authority (ASA) joint enforcement notice on misleading repayment agent adverts

In December, HMRC and the ASA issued a joint enforcement notice to promoters of tax repayment agent services. We’re concerned that some advertisements are misleading ineligible individuals and businesses into claiming tax refunds or reliefs.

The enforcement notice provides guidance to promoters of tax repayment agent services. The notice applies across all media which targets UK consumers. Those advertisers that fail to comply with the Notice will be subject to sanctions.

The full press release and enforcement notice are available to read on the ASA's website.

This activity also coincides with our new campaign to help consumers understand the risks posed by misleading advertisements from some repayment agents, and what they should consider before claiming tax refunds on work expenses. 

Your clients and members can find out more about the claiming expenses – don't get caught out campaign on GOV.UK.

5. 'Stubbing Out the Problem' - A new strategy to tackle illicit tobacco

HMRC and Border Force have published a new illicit tobacco strategy, 'Stubbing Out the Problem', setting out our commitment to reduce demand for illicit tobacco, and to tackle and disrupt the organised crime gangs behind the illicit tobacco market.

You can read the 'Stubbing Out the Problem' strategy to tackle illicit tobacco on GOV.UK.

6. Changes to the way some employers make PAYE payments

Most UK employers now make their pay as you earn (PAYE) payments to us online, but a small number still use a printed payment book, and this is now changing.

Employers will no longer receive, or be able to request, a replacement payment book to make PAYE payments at a bank or building society. Employers who still have a current payment book can continue to use it until the end of this tax year (5 April 2024). 

After that date, employers can either pay online or send us a cheque by post and write the reference number on the back of the cheque, with no need for a payment book page to be included.

Paying online is the quickest and most secure way to ensure payment is received. 

You can find more information on ways to pay at Pay employers’ PAYE on GOV.UK.

7. Changes to paternity leave and pay from 8 March 2024

The government is making changes to the way paternity leave and pay can be claimed and taken, which will make it more flexible for fathers and partners to access.

These changes, which come into effect from 8 March 2024, will:

• allow fathers and partners to take their leave in non-consecutive blocks. Currently, only one block of leave can be taken, which can be either one or two weeks. The changes will remove this barrier by enabling fathers to take two non-consecutive weeks of leave.
• allow fathers and partners to take their leave and pay at any point in the first year after the birth or adoption of their child. This gives fathers and partners more flexibility to take their paternity leave at a time that works for their family.
• shorten the notice period that fathers and partners are required to give their employers for each period of leave. The new measure will require an employee to give only four weeks’ notice prior to each period of leave. This means that they can decide when to take their leave at shorter notice to accommodate the changing needs of their families.

Further guidance will be available on GOV.UK from 8 March.

8. Changes to Scottish Income Tax from 6 April 2024

The Scottish Government has announced changes to Scottish Income Tax, which will take place from the 6 April 2024.

This includes the introduction of a new tax band called Advanced Rate. 

For further details on these changes, your clients and members can read the Scottish Income Tax 2024 to 2025 factsheet on GOV.Scot.

We’ve engaged with payroll software providers to ensure payroll software products are updated for 2024–25, so Scottish Income Tax is calculated and deducted correctly from the start of the new tax year.

Further guidance will be published on GOV.UK ahead of the new tax year.