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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'.

  • Company tax returns and the AIA HMRC have announced that their Corporation Tax online service will be updated with the new Annual Investment Allowance (AIA) annual limit in April 2013. Until then, the software will use the current AIA limit. 28 December 2012
  • HMRC reminds gaming machine operators to register for machine games duty HMRC have issued a news release (SPEC 18/12) reminding operators of gaming machines that machine games duty (MGD) becomes payable from 1 February 2013. 27 December 2012
  • HMRC Weekly Update (RTI and Statutory Payment Rates 2013-14) HMRC provide an update on Real Time Information (expatriate employees) and on Statutory Payment Rates 2013-2014. 21 December 2012
  • Updated Briefing Note - Guidance on UK/Swiss Deal The CIOT and ATT have updated a briefing note on some of the Professional Standards issues which arise out of the UK/Swiss Tax Deal. 18 December 2012
  • HMRC PAYE Update (NINO VRs, employment related shares and tax-advantaged employee share schemes) HMRC have provided a further informal update on PAYE related matters for sharing. The update covers NINO Verification Requests, employment related shares and tax-advantaged employee share schemes. 14 December 2012
  • RTI 'At a glance' HMRC have produced a short guide to outline changes in PAYE procedures under Real Time Information (RTI) and what employers need to do to be ready for RTI by April 2013. HMRC have also published guidance on penalties for late and incorrect RTI returns, and an update on the RTI pilot. 12 December 2012
  • Agent Update 33 Agent Update 33, December 2012 - January 2013, has been published. This is available to download here in PDF format. 11 December 2012
  • Overlapping Debtors pilot scheme The Cabinet Office has provided an update on projects underway to reduce overdue debt owed to central Government. These projects are being led by the Cabinet Office's cross-Government Fraud, Error and Debt (FED) Taskforce, working jointly with HMRC, DWP, Her Majesty’s Courts and Tribunals Service (HMCTS) and others. 29 November 2012
  • Important change to Tax Tribunal procedure The Tax tribunal has recently tightened its procedures in relation to emailed appeal applications to bring them into line with First Tier Tribunal (FTT) rules. Whereas previously an authorised representative could file an emailed appeal form on behalf of a client, without the client’s physical signature, now only ‘legal representatives’ are permitted to do so without separate authority being lodged with the Tribunal. 29 November 2012
  • Registering for SA and NIC online or using form CWF1 To maximise efficiency and accuracy, HMRC prefer agents to use the online tax registration service (OTRS) when registering clients for SA and NIC. Where this cannot be done the new version of form CWF1 must be used. From 1 February 2013, HMRC will return old forms CWF1 as they do not provide enough information. The new version of Form CWF1 will be integrated into 3rd party software. 28 November 2012
  • Update on the Tax Agent Strategy HMRC have supplied a briefing note on the work that is being done on the Tax Agent Strategy, explaining the work to date and the plans for the near future. Much of the work to date has involved CIOT and ATT members in various workshops and pilots, following well over 100 putting their names forward at the start of the year. 28 November 2012
  • Machine Games Duty: requirement to register before 1 January 2013 Those involved with machine games are reminded that those responsible for premises where machine games are played on which Machine Games Duty will be due must apply for registration before 1 January 2013 to avoid a penalty. 26 November 2012
  • HMRC PAYE update (ADR and RTI) HMRC have provided a further informal update on PAYE related matters for sharing. The update covers the Alternative Dispute Resolution trial for SME's and Individuals, and a link to the technical note for draft amendments to regulations for PAYE, NICs and CIS. 23 November 2012
  • Notifying HMRC of change of name or address for individuals HMRC are working to improve the accuracy in processing change of address notifications that they receive for individuals. Individuals are encouraged to keep the details held by HMRC up-to-date by notifying them promptly of any change of name or address. 20 November 2012
  • HMRC PAYE update (Class 1A NICs, RTI and FR20 Consultation Exercise) HMRC have provided a further informal update on PAYE related matters for sharing. The update covers P11D(b) Return of Class 1A NICs, RTI timing of real time PAYE returns, RTI webinar, Future Reserves 2020 (FR20) Consultation Exercise and information on how to provide feedback. 20 November 2012
  • P800 Tax Calculations for those taken out of SA HMRC have informed us that following recent upgrades to their computer systems, they are able to reconcile the information held on taxpayers who contacted HMRC earlier this year to be taken out of Self Assessment. 19 November 2012
  • Real Time Information: On or before In response to concerns about the requirements of Real Time Information (RTI), HMRC have confirmed that they will make some small but welcome relaxations to the requirements to file ‘on or before’ in certain situations. Although a step in the right direction, the CIOT does not believe that this change goes far enough. 14 November 2012
  • HMRC PAYE update (tax code change) HMRC have provided a further informal update on PAYE related matters for sharing. The update covers the PAYE tax code change as applied to 'trivial commutation' and similar one-off lump sum pension payments from registered pension schemes. 9 November 2012
  • Agent view pilot due to start HMRC have informed us that, following a delay to review aspects of the Agent View project, they are due to start the ‘evaluation pilot’ later this month. Members may wish to check with their PII or PFI insurance company whether taking part in such a pilot exercise is a notifiable event. 8 November 2012
  • HMRC Contact Centre performance and management information As part of the Joint Initiative on Service Delivery, HMRC has worked with Representative Bodies, including the CIOT, to agree to publish performance information about its Call Centres. 8 November 2012
  • VAT online attachments and hybrid applications launched HMRC have launched the updated VAT online service, covering VAT registration, deregistration, variations, scheme applications and printing certificates. A significant improvement is the ability to attach documents, such as option to tax forms, OR to make a hybrid application, by applying on line but posting large documents. 6 November 2012
  • HICBC documents HMRC have sent us advance copies of some of the documents being send to certain taxpayers who might be subject to the new High Income Child Benefit Charge (HICBC). HMRC have also today released the first version of their guidance on the HICBC. 29 October 2012
  • RTI PAYE start dates clarification HMRC have confirmed that by April 2013 almost all employers and pension providers will be migrated to the RTI system. Most will have to commence RTI reporting from the start of the new tax year in April 2013, reporting payroll information to HMRC online on or before the payroll payment date. 29 October 2012
  • Accounts tagged using US GAAP taxonomies HMRC have announced that they are now able to process accounts submitted to them that have been produced using 2011 and 2012 versions of US GAAP taxonomies. All relevant returns are to include accounts in iXBRL format. 25 October 2012
  • Agent Update 32 Agent Update 32, October - November 2012, has been published. This is available to download here in PDF format. 25 October 2012
  • Autumn Statement and draft Finance Bill 2013 clauses: dates The dates for the Autumn Statement 2012 have been released. The Chancellor of the Exchequer, George Osborne, will begin proceedings on Wednesday 5 December at 12.30pm. The draft Finance Bill 2013 clauses are due for release six days later on the 11 December 2012. 23 October 2012
  • Paying the right HMRC bank account with the right reference We have often asked HMRC to provide better guidance on which of their various bank accounts should be used for each type of tax payment and what reference taxpayers should use. We are pleased to see that they have recently produced a useful lookup tool. 23 October 2012
  • RTI updates: notices, checklists and non-standard schemes HMRC have provided links to a number of updates on the introduction of Real Time information (RTI). This includes writing to employers to advise that they will start reporting under RTI from April 2013, writing to ‘non-standard’ employers to advise when they will join RTI and providing a ‘getting ready’ checklist. 16 October 2012
  • HMRC PAYE update (RTI updates and Settlement Agreement payments) HMRC have provided a further informal update on PAYE related matters for sharing. The update covers RTI updates and PAYE Settlement Agreement payments. 12 October 2012
  • HMRC Online Service downtime update Most HMRC Online services will be affected between 12 and 15 October 2012 due to a number of routine scheduled IT updates and planned maintenance work to their IT systems. The tax credit system will be unavailable from 7am Thursday 11 October until the start of business Monday 15 October 2012. 10 October 2012
  • Urgent message: HMRC’s Online Tax Registration Service Do you have incomplete registration applications sitting on HMRC’s Online Tax Registration Service (OTRS)? If so you may need to take action before 06.00 hours on 12 October 2012. 8 October 2012
  • HMRC PAYE update (Employer Annual Returns, Appealing against penalties and an Amendment to CWG2(2012)) HMRC have provided a further informal update on PAYE related matters for sharing. The update covers penalties for outstanding 2011-12 PAYE Employer Annual Returns, how to appeal against a penalty, an amendment to CWG2(2012), Employer Bulletin 42 and changes to the way HMRC handle inbound post. 1 October 2012
  • Employer Bulletin 42 HMRC have released the 42nd edition of the Employer Bulletin. This issues contains important information and updates about Real Time Information and provides a summary of other news which may affect the operation of payroll responsibilities. 28 September 2012
  • RTI Flyers issued by HMRC to employers Attached is a flyer issued by HMRC to representatives of SME/Micro employers on Real Time Information (RTI). 24 September 2012
  • HMRC PAYE update (RTI, National Minimum Wage and Employee queries) HMRC have provided a further informal update on PAYE related matters for sharing. The update covers Real Time Information, the national minimum wage and employee queries where operation of ‘week 53' payment results in an underpayment of tax. 14 September 2012
  • HMRC PAYE update (Share & Securities Bulletin, fuel rates and tax relief models) HMRC have provided a further informal update on PAYE related matters for sharing. The update covers the Shares & Securities Bulletin, fuel rates and tax relief models. 31 August 2012
  • HMRC PAYE update (Basic PAYE tools and Agent Update) HMRC have provided a further informal update on PAYE related matters for sharing. The update covers Basic PAYE Tools and Agent Update 31) 24 August 2012
  • Agent Update 31 Agent Update 31, August - September 2012, has been published. This is available to download here in PDF format. 22 August 2012
  • Business Investment Relief for Non-Doms – loans - clarification HMRC have provided a clarification around how FA 2012 schedule 12 part 2 works for investment funded with loans subsequently repaid using offshore income/gains. HMRC have confirmed that using foreign income and/or gains to repay loans where those loans, in turn, funded investments made after 6 April 2012, would in principle qualify for the business investment relief. 15 August 2012
  • HMRC service delivery update HM Revenue and Customs (HMRC) has published a further update on the joint initiative between HMRC and key stakeholders, including the CIOT, regarding service delivery. 10 August 2012
  • HMRC PAYE update (NICs, mislaid documents and PAYE Payroll Pooling) HMRC have provided a further informal update on PAYE related matters for sharing. The update covers Regional Employer National Insurance Contributions (NICs) Holiday for New Businesses, what to do if you mislay documents, and a review update of PAYE Payroll Pooling. 10 August 2012
  • HMRC PAYE update (New P46 (Short) for employers, Company Car and Car Fuel Benefit Calculator and Save As You Earn (SAYE) share option schemes) HMRC have provided a further informal update on PAYE related matters for sharing. The update covers the launch of a new P46 (Short) for employers, Company Car and Car Fuel Benefit Calculator and Save As You Earn (SAYE) share option schemes. 6 August 2012
  • Statutory Residence Test (SRT): initial points raised with HMRC CIOT representatives recently met with HMRC and HMT to discuss initial points raised by members on the SRT proposals. A note of the points raised is attached; comments in red amplify some of the points raised. We also discussed some aspects, eg Family and Home in more detail. 2 August 2012
  • HMRC PAYE update (RTI, Outstanding expenses and benefits forms and Employer email alerts) HMRC have provided a further informal update on PAYE related matters for sharing. The update covers RTI, forms P9D, P11D and P11D(b), and a reminder of the employer email alerts. 30 July 2012
  • ‘Signpost headings’ on SA and PAYE letters from agents to HMRC The Working Together post working group is running a pilot exercise to encourage the use of signpost headings on letters that agents send to HM Revenue & Customs (HMRC) regarding their clients' Self Assessment and PAYE affairs. HMRC hopes that introducing these headings will improve processing times, which will be a win for agents, taxpayers and HMRC. 25 July 2012
  • Budget changes - Corporation Tax online service has been updated Members will be pleased to note that following calls from the professional bodies for HMRC to update their Corporation Tax online service once the Finance Bill received Royal Assent, HMRC has confirmed that this has been done. 24 July 2012
  • HMRC PAYE update (Customer survey, VAT Toolkits, Film Tax Relief, RTI and P38(S) withdrawal) HMRC have provided a further informal update on PAYE related matters for sharing. The update covers a customer survey on HMRC Tax, information on updated VAT Toolkits, Film Tax Relief, RTI and the withdrawal of Form P38(S). 20 July 2012
  • HMRC PAYE update (P11D returns, electronic payment details, external email pilot and RTI) HMRC have provided a further informal update on PAYE related matters for sharing. The update covers P11D returns, electronic payment dates, information on an external email pilot, changes to the expenses and benefits table and Real Time Information. 13 July 2012
  • HMRC PAYE update (Expenses and Benefits, NI rule changes, Fuel duty rate and Pension Schemes Services) HMRC have provided a further informal update on PAYE related matters for sharing. The update covers CWG 2 (2012) Employer Further Guide to PAYE and NICs, Expenses and Benefits, National Insurance rule changes, Fuel duty rate, Pension Schemes Services and information on a few consultation documents. 6 July 2012
  • Agent Update 30 Agent Update 30, June - July 2012, has been published. This is available to download here in PDF format. 27 June 2012
  • Employer regulations for ensuring workers have a legal right to work in the UK If you are an employer or an agent for employers you should be aware of recent information issued by the UK Border Agency in connection with updated guidance for employers on the checks they need to make before employing workers. Full details can be found here. 26 June 2012
  • Statutory Residence Test summary The long-running consultative process on the development of a Statutory Residence Test (SRT) took an important step forward with the publication on 20 June of a joint HMT/HMRC Summary of Responses to the Statutory Definition of Tax Residence consultation, including draft legislation intended to go forward to FB13. The CIOT’s response will be led by Peter Ashby. Attached is Peter's immediate review of the document, a summary of the key points which may be useful to members as an aide-memoire. 26 June 2012
  • HMRC PAYE update (RTI, PAYE tools and PAYE for employers) HMRC have provided a further informal update on PAYE related matters for sharing. The update covers Real Time Information, Basic PAYE tools and Expenses and Benefits (employers). 22 June 2012
  • HMRC PAYE update (Tax Calculator, P800 Tax Calculations and Scam Emails) HMRC have provided a further informal update on PAYE related matters for sharing. The update covers a clarifaction on HMRC's Tax Calculator, P800 Tax Calculations for Tax Year 2011-12 and a warning of scam emails. 15 June 2012
  • Finance Bill 2012 Open Day: Questions & Answers Questions & Answers from the Finance Bill 2012 Open Day that took place on 27 April 2012, plus a separate Q&A attachment on Clause 8 - High income child benefit charge (HICB). 14 June 2012
  • Real Time Information (RTI) webinar The CIOT/ATT webinar slides, transmitted on 7 June, are available here in Adobe (pdf) format. 12 June 2012
  • Senior Accounting Officer - SAO - getting to grips with employment taxes Tax Adviser article, June 2012. James Warwick, Employment Taxes Director, London Global Employer Service at Deloitte and Hayley McKelvey, Senior Tax Manager, London Global Employer Service at Deloitte, review HMRC's revised guidance. 10 June 2012
  • HMRC PAYE update (Tax Calculator, ADR and P11D) HMRC have provided a further informal update on PAYE related matters for sharing. The update covers the HMRC tax calculator, Alternative Dispute Resolution and Company Car Tax. 1 June 2012
  • ADR pilot for SMEs and individual taxpayers goes nationwide HMRC has announced that the Alternative Dispute Resolution (ADR) pilot for SMEs and individual customers has gone nationwide. VAT cases in particular are invited to apply to join the pilot. 1 June 2012
  • XBRL tagging – minimum tagging list to remain The CIOT and representatives of other professional bodies and the software industry have been meeting with HMRC to discuss how iXBRL filing is progressing and whether there will be any changes to filing requirements at the end of the (at least) two year transitional period. 31 May 2012
  • HMRC PAYE update (2011-2 and 2010-1 Employer Annual Returns) HMRC have provided a further informal update on PAYE related matters for sharing. The update covers outstanding 2011-2 and 2010-1 Employer Annual Returns. 25 May 2012
  • 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
  • HMRC PAYE update (EoY reconciliations, Basic PAYE Tools, service delivery joint initiative and Company car tax) HMRC have provided a further informal update on PAYE related matters for sharing. The update covers End of Year reconciliations, Basic PAYE Tools, a joint initiative on HMRC service delivery and Company car tax. 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
 
 

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