The government realised some time ago that a large number of taxpayers would need to defer tax due this January, so HMRC created an instalment mechanism to allow individual taxpayers to apply for time to pay the tax debts now falling due. However, some taxpayers and advisers using the online service to defer tax due on 31…
Category: Taxation
Activation code requirement temporarily suspended for online SA filing
On 1 December 2020 HMRC temporarily suspended the requirement for an activation code to be sent in the post before taxpayers can access the self assessment online filing service. The normal process for taxpayers who want to sign up to file a self assessment (SA) tax return online involves HMRC sending an activation code through…
MTD filing to be extended to all VAT-registered traders from April 2022
On 21 July the Treasury set out a first draft of the government’s ten-year plan to modernise the tax administration system. This includes restarting the making tax digital (MTD) programme which had ground to a halt in the face of Brexit and the coronavirus pandemic. MTD filing is to be extended to all VAT-registered traders from April 2022…
Tax agents unable to make Self-Employed Income Support Scheme claims on behalf of clients
Just when they hoped the government was coming to their rescue, the millions of self-employed workers in the UK have been delivered a blow by HMRC who have announced that their tax agents are barred from claiming the self-employed income support scheme (SEISS) grant on their behalf. The SEISS will be open for applications from…
How to negotiate a time to pay agreement with HMRC
HMRC has published details of the specific helpline to contact to negotiate a time to pay agreement if you are likely to have difficulty paying tax because of Coronavirus, but it’s not known whether HMRC will change its usual approach to time to pay, for taxpayers who are having difficulty. In the meantime businesses may find useful…
Don’t ignore HMRC emails
As part of its strategy to make tax digital, HMRC has been encouraging taxpayers to switch to paperless communication via their online personal tax account. As a result if you consent to paperless filing HMRC will post notices on your online account and send you an email notifying you about the new message. To read the…
What’s next for Making Tax Digital?
As you are probably already aware, there will be no further new taxes introduced, or changes to the threshold for VAT in 2020, so the next major change in MTD will not be until 2021 at the earliest. However, there are a couple of points in relation to the VAT process of which businesses should…
Have you received a ‘nudge’ letter?
A number of businesses and individuals have received letters from HMRC requesting detailed information about subjects ranging from rental accommodation and offshore income to the employment status of contractors. What’s going on, and how should you respond? HMRC’s Connect computer system collects data from public and private sources, which HMRC uses as the basis for…
Banks move to clamp down on contractors
Barclays and Lloyds have become the latest big businesses to inform contractors that their engagements would not extend beyond the introduction of new off-payroll working rules to the private sector next April. Contracts will instead be arranged on a PAYE or umbrella firm basis. The move is the latest in a string of similar statements…
New VAT registrations and Making Tax Digital
The process for registering for VAT is unchanged. A business that needs to (or chooses to) register for VAT for the first time should follow the current process to register for VAT and the VAT registration guidance on gov.uk. If the taxable turnover of the business in the previous 12 months is over the VAT registration…
