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Working Together issues in summary
Issue 45 of Agent Update, HMRC’s bi-monthly news roundup for tax advisers, includes details on the Working Together open issues register, as follows.
Interaction of 64-8 and new form R27: the bereavement service changed on 13 October, and form R27 is no longer relevant from that date. Some contact centre staff gave out incorrect information, but this has been corrected and guidance given to all employees. The new letters to personal representatives ask if there is a third party acting. There is space to nominate an accountant or solicitor if the personal representative wishes to do so. Form 64-8 is no longer required.
Hand delivery of paper returns: all HMRC enquiry centres closed on 30 June. The guidance on hand delivery of self assessment tax returns stands. Taxpayers may post paper returns and documents at buildings where HMRC staff work, or where it is possible to hand deliver items to a member of staff.
The following issues have been made dormant to ensure they are kept under a longer term review.
Dedicated agent employer helpline: the provision of a dedicated line for agents who have queries about clients’ PAYE schemes has been discussed with the employer helpline. Most calls made to the helpline are from agents. Members of the issues overview group are gathering evidence, and HMRC continue to monitor the performance of the helpline.
High-income child benefit charge: charge letters are designed to help taxpayers get their returns right, by raising awareness of the charge. Those who have paid the charge can disregard the letter, which reminds taxpayers to include the charge on future tax returns, and encourages couples to discuss between themselves which partner might be eligible. If that is not possible, HMRC can provide guidance to allay concerns about who is to pay. Professional bodies have provided feedback, with suggestions on improving future letters.
Form CG34 processing: professional bodies have raised an issue concerning where to submit completed forms CG34 and processing times. HMRC would like to collude with the bodies on the issue, and Working Together is keeping it under a long term review so that developments and outcomes from the consultation review of the CG34 process are known.
PAYE code notices: professional bodies have suggested that HMRC introduce a facility for agents to view their clients’ PAYE code notices in cases where they are not in self assessment. The Revenue has noted this as a risk. It is part of the digital tax account work. No fix is possible using the current systems.
Class 2 National Insurance: most self-employed people will pay their class 2 National Insurance contributions through self assessment from April 2015. HMRC no longer accept new direct debit applications to pay class 2 contributions. The department will write to taxpayers to explain that a request will be issued next spring, to ask for the payment of contributions up to 11 April 2015. Taxpayers will no longer need to apply to defer the payment of class 2 and 4 contributions. HMRC will send letters on 17 December to all self-employed people who have deferred payment of their contributions, to let them know they do not need to make another application. New deferment applications will not be processed. A breakdown of all the amounts to be paid will be displayed on taxpayers’ self assessment calculations.
