Technical News

HMRC have asked us to draw attention to their following notice about forthcoming Talking Points meetings  

Revenue Scotland have provided an update on pre-penalty notification letters.

Members are strongly advised to look out for a new phishing scam.

Members will have no doubt seen recent reports in the national press and other material about an error in HMRC’s 2016/17 tax calculator software which means it is not able to calculate the correct tax liability in certain situations where a taxpayer’s income contains a particular mixture of savings and dividend income. The problem concerns the dividend and personal savings allowances introduced in April 2016 and affects taxpayers filing online using HMRC’s software and third party packages.  HMRC will not be able to fix the problem until 2017/18.

HMRC have published their latest Agent Update. A PDF copy is also attached below.

HMRC have provided a note for Agents on obtaining clients pay, tax and employment history information.

HMRC have confirmed that their April 2017 Trust and Estates Newsletter will include for 2017-18 an extension of the 2016-17 concession whereby HMRC will not require notification from trustees or personal representatives dealing with estates in administration where the only source of income is savings interest and the tax liability is below £100.

The Tax Tribunals for Scotland have provided the attached bulletin for information purposes.

Following discussions with HMRC, we have provided the attached guidance for members in connection with letters that they may have received recently from HMRC about the serial tax avoidance legislation in Finance Act 2016 Schedule 18.

A revised version of Professional Conduct in Relation to Taxation comes into effect on 1 March 2017. All members were notified of these changes on 1 November 2016, and are particularly important as these new guidelines state that members “must not create, encourage or promote tax planning arrangements or structures that (i) set out to achieve results that are contrary to the clear intention of Parliament in enacting relevant legislation, and/or (ii) are highly artificial or highly contrived and seek to exploit shortcomings within the relevant legislation.”