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Open and closed issues in summary
The latest issue of HMRC’s Agent Update, the bi-monthly roundup of news for tax advisers, includes a section on Working Together issues, which is summarised below.
Open priority issues
WT050: HMRC ran a formal consultation from 18 June to 9 September 2014 seeking the views on replacing the current system of dispensations for reporting non-taxable expenses with an exemption for paid or reimbursed expenses. HMRC are currently analysing the feedback received and WT will keep agents updated as the analysis from the consultation emerges.
WT117: The lack of employer name or PAYE reference on P6 and P9 makes it difficult for an agent to link them to their client’s record. The IOG members confirmed this is still an issue for agents and WT continues to pursue the issue.
WT143: HMRC is planning an IT solution to address the current issue of misalignment of dates/information held on both the SA and PAYE systems, this is scheduled for implementation during 2015. The IT solution will update the SA and PAYE systems so that the correct start year for SA is transferred to the PAYE system ensuring that cases are not reconciled on both systems where a customer is registering for SA in the year after a Return is issued. WT agreed with IOG members that this issue be made dormant but kept under review to monitor the proposed IT solution.
WT226: PAYE coding (P2) not showing wk1/mth1 indicator. Agents do not receive a copy of the client’s P2 and rely on the information provided by the client and this can lead to confusion and discrepancies in the client’s liability when it is not known when an emergency or cumulative coding has been applied. WT is pursuing this issue.
Closed issues
WT118: Specialist Department contact details and difficulty contacting PTI to get technical support with CGT. The Contact us details on the HMRC website now shows the correct helpline number, 0300 200 3300, and gives two PO box addresses, the first is for more general CGT technical advice and the second lists the specific technical queries that can be dealt with by contacting this second address.
WT139: Agent Update 35 told of a pilot being run by HMRC in conjunction with the 2013 and 2014 SA tax returns for student loan borrowers. WT have been working closely with colleagues responsible for student loans to help student loan borrowers avoid over-repaying their student loan as they approach the end of their loan repayment period. The pilot exercise was carried out throughout the 2012-13 tax return cycle, targeted at student loan borrowers who:
- complete a self assessment return;
- are within two years of fully repaying their loans;
- the Student Loans Company determine as being suitable for the scheme.
WT can now report that a decision has been made by HMRC to turn the pilot into business as usual. A third box will now appear on the SA Return from 2015 onwards within the Student Loan Repayment section asking whether the loan is expected to be fully repaid within the next two years. The factsheets currently available on the HMRC website are scheduled for amendment to reword and remove the references to a pilot.
WT161: All HMRC records are maintained in accordance with the departments retention policy which takes into account our obligations to meet the legal requirements for the retention and disposal of records laid down in the Public Records Acts, The Data Protection Act 1998 and the Freedom of Information Act 2000. HMRC would like to remind customers of their responsibility to maintain their own records of losses claimed and utilised for the purposes of self assessment.
WT193: An IT fix has been put in place and no further problems have been reported.
WT214: This issue – difficulty in setting up new PAYE schemes – originated in booklets that were issued during the weekly runs before January 2014. At the start of the 2014-15 bulk issue new coding was put onto the system that stopped this formatting problem.
WT223: The Enquiry Manual, EM1580, is the national guidance HMRC follows when opening an enquiry. It says to set a time limit for response, normally 30 days minimum. See EM1580 - Opening the enquiry: Information request: Time to respond. The guidance at EM1814, says that during the course of an enquiry HMRC, the customer and the agents should work to a 15 working day turnaround time. See EM1814 - Working the enquiry: Keeping control: Avoiding delay by taxpayer
WT224: HMRC would like to thank agents for pointing out that both the 2013 and 2014 version of forms CF10 were available on the HMRC website. The 2013 version of form CF10 has now been removed from the HMRC website. See CF10 (2014-15) S002: Suggestion for HMRC to consider allowing agents to have access to the online self-serve services as soon as they become available to customers. Agent Online Self-Serve is looking at all levels of access and to standardise procedures. The suggestion will be recorded on the log of customer requirements for further consideration.
