Agent Update 47

This is a summary of issue 47 of Agent Update, HMRC’s bi-monthly news roundup for tax advisers

Digital agent engagement

Agents were invited in January to take part in a series of regional events with HMRC representatives.

The findings, recommendations and next steps will be discussed with the strategic group working with Toni Clark (head of digital agent engagement and migration team) and will be shared with Working Together agents, professional body representatives and their respective members and attendees from the events.

Two main themes emerged across all events:

• agents requesting an email facility to communicate with HMRC; and
• GOV.UK not providing adequate information and search facility for agents.

2014/15 self assessment returns

HMRC are sending forms SA316 to 155,000 taxpayers who usually submit paper self assessment returns.

The SA316 contains information about the benefits of filing online, but should the taxpayers still want to complete a paper return, they are advised to download one from GOV.UK or obtain a form by calling the Revenue.

Many taxpayers will continue to receive paper returns, including those who previously submitted a SA200 short tax return. The forms for 2014/15 were issued between 9 and 17 April.

The Revenue has also made changes for the taxpayers who have signed up for paperless contact from the department.

About one million individuals were sent an email prompt to their self assessment online account instead of a paper form SA316. The accounts requests that people complete and submit their 2014/15 return by 31 January 2016.

All other taxpayers who complete their returns online will be sent a SA316, as in previous years.

Self-employed taxpayers in self assessment

From April 2015, liability to pay, class 2 National Insurance will be determined annually and will be based on relevant profits.

The collection will be through self assessment so clients will need to include class 2 contributions in their return from April 2016.

HMRC sent self-employed people payment requests last month for class 2 contributions relating to the previous six month period. No new payment requests will be issued.

The Revenue will issue annual payment requests in October for outstanding arrears due for any tax year up to and including 2014/15. If they remain unpaid, taxpayers will be subject to normal debt collection procedures.

There will be no more monthly or six-monthly direct debit arrangements for self-employed people in self assessment.

Those with existing direct debits will continue to have collections taken from their account until 10 July because they are collected in arrears. HMRC say the direct debit will stop automatically after the July payment has been made.

If a self-employed person needs to pay class 2 National Insurance for a period from 12 April 2015 to allow a claim to the higher rate of maternity allowance, or their spouse or civil partner has made a claim to the allowance, there is an exception process to allow them to pay the requisite contributions if they have not already done so.

The client, spouse or civil partner must contact the Department for Work and Pensions. which will inform HMRC that a claim has been made. The Revenue will issue a payment request if contributions are needed.

Self-employed taxpayers not in self assessment

Self-employed people working outside the UK temporarily, who are granted permission to pay their class 2 contributions in the UK, rather than in the country where they are working, will have their liability determined at the end of the tax year, based on relevant profits.

They will receive an annual bill in October for the 2015/16 tax year and beyond.

Taxpayers currently paying class 2 National Insurance voluntarily, both abroad and in the UK, will receive an annual payment request in the October following the end of the tax year, which must be paid by the next 31 January.

Issue: 4503 / Categories: For Action , Admin , Employees , Income Tax , Self assessment