HMRC Stakeholder Digest – 10 November 2022

10 Nov 2022

Please see the following message from HMRC, which we are sharing for information:

The HMRC Stakeholder Digest provides a round-up of our latest news and updates, which we’d be grateful if you could share with your clients, customers, or members.

Quarter two 2022 performance update 

On Thursday 3 November we published our quarter two performance data and monthly performance data for September 2022.

It showed that we’ve maintained improved levels of service across most areas of work, including achieving over 80% customer satisfaction with our phone, webchat, and digital services, but some services have been affected by high demand and other factors.

We’re continuing to focus on delivering service improvements quarter on quarter. 

Our performance update for July to September 2022 can be read in full along with the data on GOV.UK.

Self Assessment and Corporation Tax – paper repayment notifications ending 16 December

We currently issue paper repayment notifications to let customers and their agents know about BACS electronic repayments being issued to them for Self Assessment and Corporation Tax.

Customers can review any transactions by using their online account. Agents can also use our online services for agents account to review transactions on behalf of their clients.

More information about our online services is available on GOV.UK.

Please share this information with your clients who are working through an umbrella company or engaged in temporary work arrangements.

Guidance for those working through umbrella companies

We’ve updated our guidance for those working through an umbrella company on GOV.UK.  

It aims to help them understand how they will be engaged, how their pay is made up and what employment tax rights and obligations they have whilst employed by an umbrella company. 

The Department for Business, Energy & Industrial Strategy have also published a new guidance page on Key Information Documents. This is an important part of the process in helping umbrella company workers understand their rights.  

Please share this information with your clients who are working through an umbrella company or engaged in temporary work arrangements.

New G-form available for VAT First Period Repayment Claims (FRPS)

Since autumn 2021, some newly VAT registered businesses who have submitted a repayment claim on their first VAT return have received a letter advising that we would check their repayment claim.

The letter included a questionnaire which businesses are asked to complete and provide supporting evidence for their claim.

However, we have seen a significant increase in emails and telephone calls asking for an electronic version of the questionnaire to be provided.

To help customers with this, we have now created a new digital Google Form (G-form) to send details to support your VAT repayment claim and we’d appreciate if you share this with your clients. This will allow businesses to provide us with the requested information more securely.  

There will be no changes to the way we currently process VAT First Period Repayment Claims.

Act now to avoid deferred VAT payments penalties

Businesses that deferred their VAT payments between 20 March 2020 and 30 June 2020 had until the end of June 2021 to arrange to pay. After this time, the outstanding amount became a debt that we would take further action to collect.

Businesses that still have deferred VAT outstanding may now be charged a 5% penalty. In some cases, interest may also be charged on the outstanding amount. 

Businesses should contact us as soon as possible if they are struggling to pay their deferred VAT to arrange to pay.

Please share this message with your clients to remind them to act if needed.

For more information, go to deferred VAT and the penalty charge on GOV.UK.

Second Cost of Living Payment

Customers that receive both tax credits and other eligible DWP benefits, such as Income Support, will receive their second Cost of Living Payment automatically from DWP between 8 and 23 November.

Eligible customers receiving tax credits only and no other means-tested benefits will be automatically paid by us between 23 and 30 November. The payment will appear in customers’ bank accounts as “HMRC COLS”, referring to Cost of Living Support.

Customers do not need to apply or contact us or DWP as payments are automatic.

Please share this message with your clients who might be expecting a second payment.

Self Assessment deadline – Time to Pay arrangements

Since 6 April 2022, almost 21,600 Self Assessment customers who were unable to pay their tax bill in full, have set up a payment plan to spread the cost into manageable monthly instalments.

Customers can contact us if they are unable to pay their Self Assessment tax to discuss Time to Pay arrangements which will depend on how much they owe.

The deadline for customers to submit their tax returns for the 2021 to 2022 tax year and pay any tax owed is 31 January 2023 and we are encouraging anyone yet to complete their return to do it early.

Those who have already completed their Self Assessment know what they owe and can budget to make payments on time.

Between 6 April 2021 and 5 April 2022, almost 142,000 customers chose to use self-serve Time to Pay to pay tax owed for the 2020 to 2021 tax year, spreading the cost of around £475 million into monthly instalments.

Please remind your clients that there is support available if they are unable to pay their tax bill in full with our Time to Pay arrangements.

National Living and Minimum Wage campaign

The National Living and Minimum Wage increased on 1 April 2022 for more than two million eligible workers, including apprentices in the UK.

BEIS is now running a further short phase of National Living and Minimum Wage activity, highlighting the latest rates as part of the government’s action to support households with the cost of living. 

They have developed a National Living and Minimum Wage stakeholder toolkit to help make sure that employers and workers are aware of the annual increase and to ensure workers know what to do if they are not being paid correctly.

We’d appreciate it if you share some of the campaign messages with your clients who might be affected by this change.

Get help with the Customs Declaration Service (CDS)

The Customs Declaration Service (CDS) is now the only way businesses should be making import declarations. We understand that new systems and processes can be challenging.

If your clients have any questions about CDS, they can contact us at one of these channels or speak to their Account Manager or Customer Compliance Manager if they have one. 

To raise an issue with a GOV.UK service webpage or interface such as CDS, they can create a support ticket by selecting the ‘Get help with this page’ link at the bottom of any screen. 

For critical issues experienced outside of our main customer service hours, such as goods stuck at the border, your clients can call our Customs and International Trade helpline on 0300 322 9434 and choose option one. If the issue is more complex, they can email 24/7 for technical support for CDS.

Both channels are available for critical issues only from 8pm to 8am weekdays and weekends. 

They can always keep up to date with our service availability and issues on GOV.UK 

Alcohol Duty Reform technical consultation – have your say by 18 November

Stakeholders including producers, importers, and resellers of alcoholic products have until 18 November to respond to the government’s Alcohol Duty technical consultation.

All feedback will help inform the draft primary legislation to implement the new alcohol duty rules from 1 August 2023. 

Businesses can have their say by completing the consultation response template on GOV.UK. 

Acas menopause at work toolkit 

Acas have developed a toolkit on managing the effects of menopause at work to support their staff, including a podcast discussing menopause at work with experts from the British Menopause Society and Kings College London.

Employers who foster a positive and open environment with their employee can help prevent:

  • losing confidence in their skills and abilities
  • feeling like they need to take time off work and hide the reasons for it
  • having increased mental health conditions such as stress, anxiety and depression
  • leaving their job.

We encourage you to share this toolkit with your networks to help support those going through menopause at work.