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2012

This section contains reports and notifications relating to tax technical work carried out by the CIOT. Many of these articles are also published in the CIOT monthly magazine 'Tax Adviser'.

  • Finance Bill – when will Royal Assent be? Late July? Unless there are provisions to the contrary, provisions in the Finance Bill are due to take effect from the date it receives Royal Assent. There has been some speculation as to when that will be. 18 May 2012
  • Capital losses - Mansworth v Jelley: cases under enquiry- update May 2012 Further exchanges with HMRC have confirmed that the issue of letters in February and March are not being treated as ‘decision letters’, so they do not consider that the judicial review claims time limit runs from their issue. 15 May 2012
  • CIPP survey on Automatic Enrolment The Chartered Institute of Payroll Professionals is carrying out a survey to understand where businesses are in their preparation for Automatic (pension) Enrolment. The survey is aimed primarily at payroll providers and employers. For any CIOT & ATT members who would be interested in completing it, a link to the survey can be found here; it is open until 8 June. 14 May 2012
  • Joint Understanding Agent Project – good progress As CIOT and ATT members will know from various notes in Tax Adviser and on the website, the tax professional bodies and the tax charities have been meeting with HMRC to discuss various process initiatives, officially called the ‘Joint Understanding Agents Programme’ but often known as the ‘Clasper initiative’. Good progress has been made on various projects and you will find attached a general update covering progress on P35s, e mail pilots, bereavement issues, post, 64-8s and other areas. 14 May 2012
  • HMRC PAYE update (Employer Annual Returns, RTI and Regional Employer NICs) HMRC have provided a further informal update on PAYE related matters for sharing. The update covers Employer Annual Returns, RTI and Regional Employer NICs holiday for new businesses. 11 May 2012
  • HMRC PAYE update (Employer Annual Returns, Earning Order deduction, VAT Returns and Toolkits) HMRC have provided a further informal update on PAYE related matters. The update covers Employer Annual Returns, Earning Order deductions, VAT returns and toolkits. 4 May 2012
  • Record Keeping for Business – Mobile Apps As previously mentioned, HMRC have been working with the IT software development industry on the provision of mobile record keeping applications (apps) for small businesses and the self-employed (who are under the VAT threshold). These basic apps can be used on smartphones to record transactions in real time, including taking a photo of receipts. 2 May 2012
  • Incorrect penalties for late SA returns HMRC have provided us with an apology and explanation around the issue recently of some incorrect penalty notices. 2 May 2012
  • Agent Update 29 Agent Update 29, April - May 2012, has been published. This is available to download here in PDF format. 2 May 2012
  • Registering for tax and forming companies online This month sees the launch of two new online registration initiatives from HMRC and Companies House. 30 April 2012
  • HMRC PAYE update (Employer annual returns, late payment penalties, filing starter/leaver information and ADR trial) HMRC have provided a further informal update on PAYE related matters for sharing. The update covers Employer Annual Returns, 2010/11 Late Payment Penalties, filing PAYE starter and leaver information and an ADR trial for small and medium enterprise customers 27 April 2012
  • HMRC business tax dashboard and T&Cs – a few notes of caution HMRC have launched the business tax dashboard (BTD) service, which enables businesses to check online on one screen their business tax position, including Corporation Tax or Self Assessment, VAT and/or PAYE. 23 April 2012
  • Employer Bulletin 41 HMRC have released the 41st edition of the Employer Bulletin. This issue contains tips and information about filing your returns, making payments to HMRC and how to avoid penalties. 23 April 2012
  • HMRC PAYE update (Collecting Small Debts) HMRC have provided a further informal update on PAYE related matters for sharing. The update covers collecting small debts through PAYE. 20 April 2012
  • HMRC call centres – are you hanging on? A volunteer of the Low Incomes Tax Reform Group (LITRG) undertook mystery shopping of three HMRC helplines in the week after Easter (the first of the new tax year) and was kept waiting on average for 30 minutes per call before it was answered. We have also had reports of member clients hanging on the phone for up to an hour. 19 April 2012
  • HMRC PAYE update (RTI) HMRC have provided a further informal update on PAYE related matters for sharing. The update covers the Real Time Information (RTI) pilot. 13 April 2012
  • Coding out small debts – HMRC briefing HMRC have released an updated Stakeholder briefing on their approach to coding out small debts (COSD) through the PAYE code: one of the methods available to HMRC to collect straightforward debts. The maximum amount that can be coded out through the tax code is £2999.99 and at present this approach will be limited to outstanding SA and Tax Credit debts. 11 April 2012
  • SDLT schemes factsheet The CIOT and ATT have prepared a factsheet on Stamp Duty Land Tax (SDLT) Schemes, following on from the warning issued last month to solicitors by the Solicitors Regulatory Authority (SRA). 5 April 2012
  • HMRC PAYE update (HMRC updates and CIS deductions) HMRC have provided a further informal update on PAYE related matters for sharing. The update covers HMRC updates on data quality and RTI, and CIS deductions. 5 April 2012
  • HMRC Online Service downtime update The scheduled upgrade of HMRC’s online services will take place in stages across 6 days, from 9pm Thursday 5 April until Wednesday 11 April. Please note that online service availability will vary across this period for the different services – 5 April start date does not apply to all online services. Further information and full details of all the scheduled IT updates can be found here. 3 April 2012
  • Capital Gains Tax: Annual Exempt Amount for 2012/13 £10,600 (subject to Finance Bill 2012 receiving Royal Assent), not £11,200 There has been some confusion over the expected Capital Gains Tax Annual Exempt Amount (AEA) for 2012/13. For those members who are understandably confused by the two amounts being bandied around, here is the answer, which is all down to the necessary Parliamentary process. 2 April 2012
  • HMRC PAYE update (Employer Annual Returns, 'week 53' payments, online services, County Court proceedings and car fuel benefit order 2012) HMRC have provided a further informal update on PAYE related matters for sharing. The update covers the Employer Annual Return, 'week 53' employee queries, PAYE online service availability, fixed costs in County Court proceedings, Simpler Income Tax for the Simplest Small Businesses and the Car Fuel Benefit Order 2012. 30 March 2012
  • HMRC PAYE update (P35 Penalty Notices, RTI, Countdown bulletin and P6 Forms) HMRC have provided a further informal update on PAYE related matters for sharing. The update covers P35 Penalty Notices, RTI, Countdown Bulletin Issue 6, Q&A session for Online sellers and P9 Forms. 23 March 2012
  • Budget 2012 Podcasts The CIOT has produced two podcasts surveying some aspects of the recent Budget. 22 March 2012
  • HMRC addresses P35 filing penalty problems Following extensive discussions within the Joint Understanding Agents Programme – the forum for taking forward the ‘Clasper initiative’ between HMRC, the professional bodies and tax charities – HMRC have announced changes to their procedures around P35 returns and penalties. 19 March 2012
  • HMRC PAYE update (RTI, BPT, Toolkits and Employer Helpbooks) HMRC have provided a further informal update on PAYE related matters for sharing. The update covers RTI, Basic PAYE Tools, Toolkits and amendments to the online versions of the Employer Handbooks. 16 March 2012
  • Do you have an Agent Account Manager? HMRC have asked us to remind members about the services offered by their Agent Account Managers. 16 March 2012
  • RTI Customer User Group 17 February 2012: minutes The minutes from the RTI Customer User Group (CUG) meeting held on 17 February 2012. 16 March 2012
  • Gift Aid Declarations – HMRC response to queries The revised guidance on Gift Aid declarations, published by HMRC on 24 February 2012, generated a number of queries. Consequently, HMRC have published further guidance (reproduced below), around the information that needs to be provided to donors making gift aid declarations and how this should be done. 14 March 2012
  • Technical Committee Activity Report, December 2011 - March 2012 The Technical Committee Activity Report December 2011 - March 2012 is available to download here in Adobe (pdf) format. 13 March 2012
  • HMRC PAYE update (Payment booklets, Class 1A NIC, Advisory fuel rates and prevention of illegal working) HMRC have provided a further informal update on PAYE related matters for sharing. The update covers payment booklets, P11D(b) Return of Class 1A NICs, advisory full rates and the prevention of illegal working. 9 March 2012
  • HMRC PAYE update (Employer annual returns, online seminars and home working guideline rates) HMRC have provided a further informal update on PAYE related matters for sharing. The update covers employers annual returns, online seminars for businesses and increasing in home working guideline rates. 2 March 2012
  • Pension Savings: Annual Allowance Calculator HMRC have released a pension savings annual allowance calculator to work out pension savings and unused annual allowance. 28 February 2012
  • HMRC Issue Briefing - Managing Significant Tax Disputes HMRC are today publishing details of how they mean to strengthen their governance and transparency of significant tax settlements, addressing the issues raised by a recent Public Accounts Committee report into significant tax disputes. Attached is an HMRC Issue Briefing which summarises the changes they are making and explains how they plan to bring in the tax revenues due from the largest businesses in Britain. 27 February 2012
  • Warning to consumers about early release pension offers The Pensions Regulator, HMRC and the Financial Services Authority have joined forces to publish a warning to consumers about early release pension offers which are currently being marketed. The warning urges consumers not to be taken in by website promotions, adverts or cold callers encouraging them to transfer their existing pension fund to a new arrangement in exchange for a loan or cash payment. 27 February 2012
  • HMRC PAYE update (tax codes, employer bulletin and basic PAYE tools) HMRC have provided a further informal update on PAYE related matters for sharing. The update covers employees' tax codes, helpbooks E12 and E13, the Employer Bulletin and basic PAYE tools. 24 February 2012
  • Agent Update 28 Agent Update 28, February - March 2012, has been published. This is available to download here in PDF format. 23 February 2012
  • SA penalty notices – what to do HMRC are about to start issuing penalty notices for late filed SA Tax Returns due on 31 January. Two key facts are: 1. HMRC may be able to cancel the return and penalty if the taxpayer calls them and establishes that they should not have been in SA. 2. Appeals can be made up to 31 March even if issued before the end of February. The latest alert from HMRC is copied below. 17 February 2012
  • HMRC PAYE update (basic PAYE tools and large businesses) HMRC have provided a further informal update on PAYE related matters for sharing. The update covers basic PAYE tools and advice for large businesses. 17 February 2012
  • Entrepreneurs' Relief (ER) HMRC have agreed that the answers to some of the technical questions on the operation of ER raised with HMRC via the CGT Liaison Group (an HMRC forum) may be published. HMRC expect to incorporate the content of the answers into the HMRC CG manual. Further answers to outstanding technical questions will be posted here as they become available. 13 February 2012
  • HMRC PAYE update (RTI, webinars and YouTube) HMRC have provided a further informal update on PAYE related matters for sharing. The update covers RTI: P45, webinars and HMRC on YouTube. 10 February 2012
  • Capital losses - Mansworth v Jelley: cases under enquiry HMRC have today issued a letter to taxpayers with cases under enquiry where capital losses have been claimed on the disposal of shares acquired on the exercise of an employee share option before 10 April 2003. The letter is posted here and asks for a response within 40 days of the letter date. 10 February 2012
  • HMRC PAYE update (RTI, new staff and tax fraud) HMRC have provided a further informal update on PAYE related matters for sharing. The update covers the Real Time Information (RTI) pilot, taking on new members of staff and the introduction of a Contractual Disclosure Facility. 6 February 2012
  • Missed the Self Assessment deadline? Here is some good news from HMRC. If you, or a client, have received a 2010/11 Self Assessment (SA) return but should not be in SA because you no longer meet the criteria, then even if the tax return deadline has been missed you can ask HMRC to be removed from SA and cancel any late return penalty. 3 February 2012
  • HMRC PAYE update (Penalties) HMRC have provided a further informal update on PAYE related matters for sharing. The update covers penalties. 27 January 2012
  • ESC C16 dissolutions warning The CIOT and ICAEW Tax Faculty are currently in discussions with HMRC and Government over the enactment of ESC C16 regarding distributions prior to a dissolution of a company and continue to seek an increase in the £25k cap shown in the draft Statutory Instrument (SI). HMRC’s interpretation of the draft legislation which straddle the effective date of 1 March 2012 concerns us. Members dealing with companies being informally wound up now may wish to consider the timing of distributions. 27 January 2012
  • HMRC relax penalties for late returns and interest on payments - by 2 days HMRC have just announced that due to potential problems around strikes on 31 January, they have decided not to charge a penalty for online SA filers who file on 1 or 2 February. The enquiry window is not extended for people filing online on 1 or 2 February. No interest will be charged on payments due on 31 January if taxpayers pay on 1 or 2 February. 27 January 2012
  • HMRC PAYE update (Code changes and notices, PAYE payments and moving online) HMRC have provided a further informal update on PAYE related matters for sharing. The update covers tax code change, PAYE payment, coding notices 2011-12 and receiving P9 and P6 forms electronically. 24 January 2012
  • Issue of PAYE codes and coding out debts HMRC have informed us that 17 and 18 million P2 annual coding notices are being sent over the next two months and provided some information about coding out underpayments of up to £2999.99 through tax codes. The CIOT have queried with HMRC whether coding notices for those in SA will, as previously requested, be delayed until after Tax Returns have been processed and we will post an update once we have a reply. 24 January 2012
  • HMRC PAYE update (Collecting Small Debts through PAYE) HMRC have provided a further informal update on PAYE related matters for sharing. The update covers collecting small debts through PAYE. 13 January 2012
  • iXBRL – problems with HMRC package Several members have recently reported to the CIOT various problems with viewing and printing accounts in HMRC’s free iXBRL online filing product. We have raised these issues with HMRC who have informed us that a new version of the product will be available for download from 7am tomorrow, Tuesday 10 January 2012, which should resolve the issues. 9 January 2012
  • HMRC PAYE update (Faster payments, RTI and the Olympics) HMRC have provided a further informal update on PAYE related matters for sharing. The update covers the Faster Payments Service, RTI and employing staff during the Olympics. 6 January 2012
  • Faster Payments to HMRC HMRC have confirmed that payments can now be made to HMRC using the Faster Payments Service (FPS). This will allow taxpayers, whose banks operate the FPS, to make faster electronic payments, typically via internet or telephone banking. Such payments are usually processed on the same or next day. 4 January 2012
  • Coding out small debts HMRC have started issuing 2012/13 coding notices including a restriction to code out small debts owed to them by taxpayers. The new process permits the collection through the PAYE code of underpayments up to £2,999. The full text of HMRC’s Briefing Note states: 4 January 2012
 
 
©2012 The Chartered Institute of Taxation
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