January agent update published

HMRC’s Agent Update 127 is available. It contains technical updates and reminders including the following.

Repayment processing

HMRC has changed the way it manages repayment requests when an agent becomes insolvent. This affects cases where the agent is shown on PAYE repayment claims as the nominee to receive repayments on behalf of taxpayers. HMRC states that if the firm became insolvent any repayments due to its clients will be paid directly to them ensuring they receive the money they are owed promptly.

Initially this change applies to repayments for marriage allowance income tax deducted from savings and investments (R40) and employment expenses (P87). HMRC says it plans to extend this process to other types of repayments.

Classification for double cab pickups

HMRC has published new guidance regarding a change in the interpretation of how double-cab pickup (DCPU) vehicles should be classified for car benefit...