HMRC Stakeholder Digest - 29 August 2024

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

The HMRC Stakeholder Digest provides a monthly round-up of our latest news and updates. We’d be grateful if you would consider sharing relevant information with your clients, customers, or members. 

Supporting small businesses and sole traders - new VAT Registration Estimator launched

To support established and prospective small businesses, we have launched a VAT Registration Estimator tool to help businesses determine what VAT registration could mean for them.

VAT-registered businesses must charge VAT on eligible sales and can usually reclaim it on eligible purchases. There are around 300,000 new VAT registrations each year.

Businesses can access the new estimator tool and check what registering for VAT may mean for their business on GOV.UK.  

We have recorded webinars to help businesses understand what the estimator tool does and how it can be used.

The webinars also provide details about what information is needed when using the estimator and signpost attendees to a step-by-step user guide on GOV.UK.  

Benefits of using the VAT Registration Estimator

• The tool will generate an estimate of their business's profits based on the range of estimated costs and the associated VAT rates.
• It's also useful for businesses operating below the £90k threshold who may want to register voluntarily to claim VAT back on their business purchases.

Users do not need to log on to GOV.UK or disclose their identity to use the tool.

Pension Awareness Week: use the HMRC app to prepare for retirement

Pension Awareness Week begins on Monday 9 September. It provides a great opportunity to raise awareness of the support available when people are preparing for their retirement.

The HMRC app can be used by people to:

• check their state pension forecast, allowing them to see their potential retirement date.
• view their weekly, monthly, and annual state pension amounts based on potential contributions.
• Check the amount their state pension is currently worth, based on their National Insurance contributions to date.
• Review their National Insurance contribution years, and view any gaps in their record, including how many weeks' contributions they have  paid in a year and how much they need to pay for it to become a full qualifying year.

The HMRC app is free and easy to download on Android and Apple devices. Instructions on how to download the HMRC app and how to check National Insurance Contribution records are available on GOV.UK. 

Changes to implementation timelines for new data requirements on employees' hours

Businesses and employers were due to start providing more detailed employees’ hours data through PAYE Real Time Information submissions from April 2025 as previously proposed in the draft legislation: improving the data HMRC collects from customers on GOV.UK.

We listened to feedback, and the need for sufficient lead in time required to upgrade software and the delay caused by the general election means that the requirement will now not apply until April 2026 at the earliest. 

We will provide a further update on proposals and timelines for implementing these changes in due course.

Businesses to benefit from new UK-Canada trade deal

The UK and Canada have signed an arrangement to help secure trade between the two nations.

In July, the two countries signed an Authorised Economic Operator Mutual Recognition Arrangement (AEO MRA).

Megan Shaw, HMRC’s Deputy Director of International Customs and Border Engagement, signed alongside Jennifer Lutfallah, Vice-President of the Commercial and Trade Branch within Canada’s Border Service Agency.

This arrangement allows authorised traders to receive benefits at our respective borders including:

• a faster application process for customs simplifications and authorisations.
• a lower risk score which may reduce the number of checks customs carried out in their documents and goods.

If you have any clients or members who trade between the UK and Canada, they can find out more about what types of Authorised Economic Operator status they can apply for on GOV.UK.

Messages on behalf of Other Government Departments

Autumn Budget 2024 / Spending Review - Stakeholder Representation

A representation to Autumn Budget 2024 and/or the Spending Review is a written submission to HM Treasury from an interest group, individual, Member of Parliament or representative body. The purpose is to comment on government policy and suggest new policy ideas to be considered in the upcoming Budget. HM Treasury welcomes representations as part of the policy-making process.

HM Treasury will accept representations until 23:59, 10 September 2024. This deadline allows time for representations to be processed and considered as part of the Budget and/or Spending Review process. You can access the HM Treasury Autumn Budget 2024 / Spending Review - Stakeholder Representation on SmartSurvey.co.uk.

Consultation on updating the Guaranteed Standards Scheme open for views

On 12 August, the Government announced new measures to crack down on water companies failing their customers. Under new plans, households and businesses will be entitled to higher compensation rates from water companies and in a wider range of circumstances when basic water services are affected.

The new proposals set out by the Secretary of State for Environment, Food and Rural Affairs (DEFRA) will double the amount of reimbursement that customers are legally entitled to when key standards are not met by water companies. 

The proposals are subject to an eight-week consultation on updating the Guaranteed Standards Scheme on GOV.UK. This is a public consultation and DEFRA welcomes all views but are particularly interested in hearing from the following groups:

• water supply and sewage undertakers and licensees operating primarily in England under both wholesale and retail authorisation.
• customer organisations, professional bodies, industry bodies, regulatory bodies, and non-government organisations (NGOs) that experienced service disruptions or GSS payments in the past.

Your clients and members can read the water bill compensation to double for poor customer service press release on GOV.UK.

A summary of responses to this consultation will be published on the UK government website and on the DEFRA homepage on GOV.UK.

If you have any clients or members who would benefit from participating in this consultation, please consider including links about the consultation on X, LinkedIn, and Facebook.