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The latest issue of Working Together, number 48, has been published; extracts follow.
Repayments
HMRC report that they have been deploying teams to identify and prevent fraudulent repayments across all tax regimes.
They have also launched an expert cyber crime team which will tackle the most sophisticated organised frauds by criminals who use cyber techniques.
With regard to making repayments, HMRC will be providing taxpayers with suitable electronic methods to make and receive payments as the use of cheques declines.
They aim to enhance their IT systems so PAYE repayments can be made electronically by Bacs. They also want to introduce new processes so that payee bank details can be provided to HMRC securely.
The department’s IT partners will make an additional repayment run over the weekends so that repayments worked clerically on a Friday will be ready for Monday morning. In addition, HMRC say they will continue to work with them on what can be done for the weekly batches.
Finally, the department has developed the form R40i prototype and tested the concept, functionality and look and feel with the voluntary and charity groups. It is currently addressing security and authorisation issues and will shortly test the form with agents as well.
Agent engagement
HMRC are working with the professional bodies through the Joint Tax Agent Strategy Steering Group (JTASSG) to bring together a group of volunteer agents to make sure HMRC’s proposals are properly tested and that any IT is right for both HMRC and agents.
Launched on 9 and 14 March in London and Manchester, initial focus will be on the proposals for enrolment and self-serve.
The agents visited so far are reasonably content with our proposals for enrolment and encouraged by the opportunities for self-serve.
They have also said they would welcome an accelerated and improved online authorisation process and HMRC are currently clarifying the legal position with a view to introducing self-authorisation as an early self-serve offering.
As promised in the consultation response, work on ‘agent engagement and standards’ is being slowed down to acknowledge the concerns expressed by agents and their representative bodies.
As planned, HMRC are constructing a concept model of the ‘agent view’ which will initially focus on bringing together agents and their self assessment and corporation tax clients.
The data it produces will be shared with the professional bodies represented on the JTASSG to determine how the data can be interpreted and used to target communication and support services to agents, helping them improve their clients’ compliance.
More detail will follow in the coming months, but HMRC acknowledges that the agent view is still an emotive subject which continues to raise concerns within the agent community. With this in mind, HMRC has committed to JTASSG and at one-to-one meetings with professional agent bodies that no pilot activity in this area will commence without full discussion.
The proposed 2012 consultation on standards and oversight of the paid agent community will proceed as planned.
Viewing P2s online
PAYE coding notices can be viewed where:
- the notice was issued after 11 October 2011;
- the agent has activated the self assessment for agents online service;
- the agent was authorised to act on behalf of the client for self assessment at the time the notice was issued; and
- there is a live self assessment record.
If the criteria has been met but the agent cannot view the notice, he should contact the online services helpdesk.
HMRC are aware that in a few cases the 2012/13 codes are appearing on the 2011/12 window and are working with their IT partners to resolve this.
Tax credits guidance
HMRC thank the Edinburgh local WT group for telling them about an omission on the TC603RD guidance notes. The notes referred to gift aid deductions for the self-employed but did not include guidance on dealing with deductions for employees with the result that claimants’ income may be incorrectly calculated. The changes suggested have been incorporated in the updated 2012/13 form and guidance.
Construction industry scheme refunds
HMRC have published a helpsheet which explains how subcontractors that are limited companies should reclaim any deductions they have had taken from their payments under the construction industry scheme. A copy of the helpsheet will also be sent to limited company subcontractors contacted by HMRC in connection with their claim for repayment of deductions through the P35 process.
Nil P35 email acknowledgements
When the online notification process is used to notify HMRC that there is no return to make, the confirmation email contains no way to identify which employer or PAYE scheme it relates to. HMRC are considering whether any change can be made.
