HMRC Stakeholder Digest - 19 December 2023
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.
1. seasonal message from Jim Harra
I'm writing to send my very best wishes for the season, and to thank you for your continued support and honest challenge during what is a critical period for the UK tax and customs system.
We are facing very significant headwinds and are having to make some difficult decisions to keep us on track and delivering against our Charter. We have made progress in a number of areas through 2023, but there is still a huge amount to do to ensure that we are meeting the challenge of managing a growing customer base with more complex demands.
One of the ways we are responding is by expanding and improving our online services. Almost 97% of Self-Assessment customers filed their tax return online in the last year, and more than 37,000 customers have completed a claim online since the Child Benefit service launched in May. We are committed to making these and
other changes in partnership with each of you and it has been really positive to see that you have recognised how we are taking an increasingly collaborative approach to the rollout of Making Tax Digital, with software developers and tax agents playing their part in co-creation sessions, identifying issues, and designing solutions
together.
It is only through innovation, particularly in the digital space, that we will be able to modernise the tax system, managing and making best use of our resources to tackle the tax gap in the most efficient way.
My Christmas wish therefore is that, where you can, you please encourage your customers and members to use HMRC’s App and other online services before calling us.
If you haven’t already, please check your inbox and register to join us for our stakeholder conference, ‘Today, Tomorrow, Together' on 29 February 2024. I look forward to meeting as many of you as possible on the day.
Please accept my very best wishes for the season for your families and loved ones, and a happy new year.
Jim Harra
Latest news and updates
2. Entain to pay £615m after HMRC investigation into failure to prevent bribery offences
Following a complex international investigation into a sports betting and gaming business, Entain PLC - the parent company of Ladbrokes and Coral – has agreed to pay £615m as part of a Deferred Prosecution Agreement (DPA).
A DPA is an agreement reached between a prosecutor and an organisation which could be prosecuted, under the supervision of a judge. It allows a prosecution to be deferred for a defined period provided the organisation meets certain specified conditions. This DPA is the first involving a HMRC case and relates to offences under Section 7 of the Bribery Act 2010 and a failure by the Company to prevent bribery in relation to its former Turkish-facing business.
The investigation was launched as part of our anti-money laundering supervisory (AMLS) role and is testament to our unique position as an AMLS supervisor, tax authority and law enforcement agency.
Other companies may wish to reflect on the judgement to ensure their corporate compliance procedures are fit for purpose.
This case comes just weeks after Bernie Ecclestone was convicted of fraud and sends a clear message that we will tackle suspected wrongdoing, regardless of the power, influence, or resources of those we face.
These two cases alone have secured more than £1.2bn for the taxpayer and demonstrate that we are committed to ensuring the tax system is fair to all.
You can read more about Entain, the gambling giant who have agreed to pay £615 million in Deferred Prosecution and about the Bernie Ecclestone conviction of fraud on GOV.UK.
More information about HMRC’s approach to tax fraud is available on GOV.UK.
3. Changes to Self Assessment notifications of BACS electronic repayments
We’re changing how we let Self Assessment customers and their agents know we’ve issued a Self Assessment BACS electronic repayments.
There is no change to the repayment process itself, so customers will still receive any money owed to them through their bank as normal.
From 7 December, we stopped sending a letter informing customers of a Self Assessment repayment, as these letters often arrive after the repayment has been made, leading to confusion and increased contact from customers.
We’re also changing digital notifications for Self Assessment repayments. Where customers have opted to receive an email rather than a letter, which means we are temporarily pausing these too, but we’ll let you know when these are reinstated.
In the meantime, repayments will still be issued to customers’ chosen bank account as usual. Customers will be able to see these transactions in their HMRC online account and in the HMRC app.
4. Cost of living payment for eligible customers receiving tax credits and no other means-tested benefits
Eligible customers receiving tax credits and no other means-tested benefits will get the final 2023-24 Cost of Living Payment of £299 from HMRC between 16 and 22 February 2024. They don’t need to apply or contact us to receive the payment, as they’ll be paid automatically in the same way they usually get their tax credits.
This is the third of three payments in 2023-24 to help with the cost of living, totalling up to £900 throughout the year for those eligible and on means-tested benefits. Eligible customers receiving qualifying benefits other than February 2024.
More information is on GOV.UK about the cost of living payments 2023 to 2024, including eligibility criteria for the £299 payment.
5. Helping contractors steer clear of tax avoidance schemes
We’re helping contractors spot the warning signs of tax avoidance, get support to leave schemes and report suspicious companies. These can be viewed on GOV.UK.
We have also published details of named tax avoidance schemes, promoters, enablers and suppliers on GOV.UK. This is not a complete list. There may be others that we cannot currently publish. HMRC never approves tax avoidance schemes for use.
You can help us to protect contractors by telling them about our ‘Tax avoidance - don’t get caught out’ campaign and share/ like our posts through your relevant social media channels.
6. Changes to full customs controls for goods moved directly from Irish ports to Great Britain
From 31 January 2024 some goods will face full customs controls when moved directly from Irish ports to Great Britain. Traders, or anyone who moves goods on their behalf, will need to be familiar with the new process.
Goods will need to complete import processes if they are being imported directly from Ireland into Great Britain (not moving from or through Northern Ireland).
Goods moving from Northern Ireland to Great Britain through Irish ports
will also have to complete import processes if they are:
- non-qualifying Northern Ireland goods
- excise goods (alcohol, tobacco, and energy products) or
- goods which do not move directly to an Irish port once they have left Northern Ireland for example, goods which are held in storage in Ireland.
Traders can find out more about the steps they need to take in the Border Target Operating Model. If you have any questions, visit Imports and exports: general enquiries on GOV.UK.
With more features being added to the app in the coming months, and with your continued help, we’re confident we will hit 100 million app sessions by the end of the financial year.
7. Improving customs processes and consultation responses
The Government has set out further details on a package of improvements to streamline customs processes and reduce admin burdens for businesses.
The announcement follows extensive consultation with industry on potential improvements to the UK customs system, first announced at Spring Budget 2023. The measures are set to be delivered across 2024 and 2025.
As part of the announcement, the Government has also published detailed responses from the consultations and calls for evidence.
You can view responses to the Customs simplifications measures – December 2023 consultation on GOV.UK