HMRC Stakeholder Digest - 29 September 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.
News and updates
Moving ‘at risk’ goods into Northern Ireland – Duty Reimbursement Scheme
If a trader has moved ‘at risk’ goods into Northern Ireland, they may be able to reclaim duty paid.
The Duty Reimbursement Scheme allows traders to reclaim duty that they have paid on ‘at risk’ goods, or they can apply for a remission of import duty that has been deferred.
If they are not resident or established in the UK, they must get an agent or representative established in the UK to submit the claim on their behalf.
Traders can apply to claim a repayment or remission of import duty on ‘at risk’ goods brought into Northern Ireland on GOV.UK. They can make a claim for goods brought into Northern Ireland from 1 January 2021 onwards, and they will need to show that the goods were not sold or used in the EU.
Changes to reporting income from self-employment and partnerships
From 5 April 2024, all sole trader and partnership businesses whose accounting year doesn’t end on or between 31 March to 5 April will need to report their taxable profits to us on a tax yearly basis.
They may need to find out the details of their overlap relief if they don’t already know this figure. This needs to be done ahead of submitting returns for the 2023 to 2024 transitional year.
On 11 September, we launched an online form that allows individuals to get their overlap relief figure on GOV.UK. We’ve also published guidance about the changes to reporting income from self employment and partnerships for the new tax year on GOV.UK.
Overlap profits are profits that have been taxed twice. These can arise if a business uses an accounting date that does not align with the end of the tax year. Overlap profits create a corresponding amount of overlap relief, given in certain circumstances such as when a business stops trading.
VAT registration is quicker, easier, and more secure through the VAT Registration Service
From mid-November, customers should apply to register for VAT through our online VAT Registration Service. Customers will no longer be able to submit a paper form to register for VAT unless they are exempt. Over 95% of customers already use the VAT Registration Service – it’s the quickest, most secure, and easiest way to register.
Supporting our customers is a priority for us and online applications for VAT registrations aligns with our ambition to increase the use of digital channels. For customers that are unable to access and use our digital channels, we’ll always provide a service to meet their needs. We continue to offer support through non digital channels such as via telephone, including our needs extra support service.
Customers can apply by post on a VAT1 form if they are exempt or if it is a specific type of registration. Customers can ask for a VAT1 form by calling the VAT Helpline on 0300 200 3700.
Your members and networks can find further information about how to register for VAT, how to apply for an exemption from Making Tax Digital and how to register for VAT by post on GOV.UK.
Over 1 million intelligent text messages sent to help our customers resolve their tax queries
Our intelligent text message service has proven to be a useful tool in encouraging the use of our online services, and it’s now a key component of our business as-usual activity.
Since its launch on 19 January, over 1 million text messages have been sent to customers who called us from a mobile phone.
The service is helping customers resolve their queries quickly and easily online, with 38% not going on to speak to an adviser or calling back within 7 days.
The texts are triggered by the call reason, and they deliver links that provide immediate access to relevant online content which customers can use to resolve their query independently and at their own convenience.
We are continuing to learn from, and improve, the service so it meets both our needs and our customers’ needs. We would value your support in encouraging your constituents to use more of our highly rated digital services.
HMRC Stakeholder Digest changes from 30 September
We are changing the email provider that we use to issue your Stakeholder Digests on 30 September. This means that you might notice subtle differences to the way our emails look, but you should expect the same level of advice, guidance and support for you, your colleagues and members.
You will continue to receive the Stakeholder Digests from bulletins.hmrc.gov.uk.
Guidance changes and changes to services
Certificate of Tax Deposit scheme closure
The Certificate of Tax Deposit (CTD) scheme closes on 23 November 2023 and we’re encouraging individuals or their representatives with remaining certificates to contact our CTD enquiries team with instructions for their use.
The scheme previously allowed individuals to deposit money with us and use it later to pay certain tax liabilities.
Customers in ongoing litigation can convert funds equivalent to disputed liabilities, as a payment on account. This protects existing late payment interest cover. Individuals should contact the CTD Team with details of the ongoing litigation. We will also require individuals to provide an instruction for repayment of any remaining funds.
We have published guidance on actions to take, and how to contact the Certificate of Tax Deposit enquires team is available on GOV.UK.
Further guidance for customers paying their tax bill by Certificate of Tax Deposit is available on GOV.UK.
Changes to the probate phone line
From Monday 2 October, we will no longer offer a dedicated probate phone line. If a customer has a probate query, they should contact HMCTS. If a customer has an inheritance tax query, they should contact HMRC.
If a customer contacts the wrong phone line, both departments will do their best to help assist with the query. This will prevent customers from making an additional call unless it is absolutely necessary.
Simplifying the phone lines will make things easier for our customers, which is one of our HMRC Charter standards available to read on GOV.UK.
Changes to the Agent Dedicated Line
Last week we provided an update to Agents on the current performance and service provided on the Agent Dedicated Line (ADL).
From 2 October 2023, agents might wait slightly longer than normal to speak to an adviser on this helpline, especially at peak times, however we remain committed to providing the right level of support for agents.
To meet the challenges we’re facing, whilst providing agents with the right level of support, we’ll be introducing the following changes from 2 October 2023:
- We’ll no longer operate to a 10-minute service level on the ADL. Waiting times may vary depending on how many agents are calling at one time. We know that a high quality of service is important to you and removing the 10-minute call answering target will allow us to focus on improving the quality of service we offer
- We’ll introduce information on call waiting times, allowing agents to make a decision based current waiting times on whether they continue with their call, call back another time, or if they can, use a digital option to resolve their query
- If agents call the ADL with a PAYE query, they will need to choose the PAYE option and their call may be re-routed
These changes are being made as part of the commitments set out in the HMRC Charter to support agents and their businesses, recognising the value tax agents bring to the tax administration system.
Campaign messaging to amplify to your networks
Helping customers spot and get out of tax avoidance
We’re currently running a ‘Tax avoidance – don’t get caught out’ campaign which aims to help contractors
- spot the warning signs of tax avoidance
- get support to leave schemes
- report suspicious companies
You can help us protect your members and networks by:
- sharing our campaign messages and posts on your relevant social media channels (e.g. Facebook, X (Twitter) and LinkedIn)
- telling them about our interactive risk checker tool
- signposting them to our supportive guides, this includes personal stories from contractors
- sharing details of tax avoidance schemes and their promoters to steer clear of. There may be others that we cannot publish at this time.
We have published further guidance about our Tax Avoidance – don’t get caught out campaign on GOV.UK to support you in helping your members and clients with this issue.
Register for Self Assessment by 5 October
We’re reminding anybody who is new to tax and who needs to complete a tax return for the 2022 to 2023 tax year to register for Self Assessment by 5 October.
Our improved online tool can help people check if they need to send a Self Assessment tax return and register on GOV.UK.
We’ve also published step-by-step instructions on how to register if they’re self-employed or not self-employed on YouTube.
Your members can find out more about registering for Self Assessment in our recent press release on GOV.UK.
Open Consultations
Plastic Packaging Tax – chemical recycling and the adoption of a mass balance approach
On 18 July 2023, the government published a 12-week consultation on allowing a mass balance approach (MBA) for calculating the recycled content in packaging made from chemically recycled plastic waste, for the purposes of the Plastic Packaging Tax (PPT).
If introduced, these changes will aim to create the right conditions for further investment in the UK chemical recycling sector.
The consultation also considers the future of the exemption from PPT for the immediate packaging of human medicines if a MBA is permitted, and the treatment of pre-consumer waste as recycled material for the tax.
Share your views about the Plastic Packaging Tax – chemical recycling and adoption of a mass balance approach consultation on GOV.UK by 10 October 2023.