UK Tax News

Persons with significant control (PSC) are being targeted by HMRC. This is in instances where they have not filed a tax return or may have not declared all their income. It is understood that circa 2,340 letters have been sent out to such individuals by HMRC. Anyone needing advice on completing a self assessment who has received a letter from HMRC can contact us for advice.

HMRC has confirmed to agents that starting 5 August 2024, any changes to clients’ VAT registration details can only be completed online. This is to be through the agent services account.

Taxpayers who have overpaid income tax will need to formally request refunds from HMRC. Previously, when a taxpayer had overpaid income tax, a calculation would be sent form HMRC, which could be reclaimed online. Where it has not been reclaimed online within 21 days, a cheque would automatically be reissued. HMRC is no longer automatically sending cheques, and these repayments after 21 days now need to be formally requested.

HMRC has updated its list of those Pension Schemes which meet the conditions to be regarded as a Recognised Overseas Pension. Seven schemes have been removed, whilst 23 have been added. You can view these here.

The cumulative time taxpayers spent on hold to HMRC for the above year was 798 years. This is according to a recently published National Audit Office (NAO) report. This is more than double the time spent in the 2019/20 year.

The National Audit Office recommends that HMRC develops more realistic plans for cutting the services it is replacing with digital.

 Guidance has been issued by HMRC on the new late filing and late penalty regimes for those who voluntarily signed up for Making Tax Digital for Income Tax Self Assessment.

Those who volunteered will need to agree to the penalties (agents can also agree to these on behalf of clients). Generally, these are a points-based system. Financial penalties will not apply for a single mistake.

It has been confirmed that no tax will be due on compensation awarded to postmasters because of the Horizon Scandal.

This applies to those whose convictions we quashed following the Post Office (Horizons System) Offences Bill. The government is to legislate through secondary legislation to this effect.

HMRC has confirmed that partnerships which have corporate partners can claim capital allowances. This is in instances which are available solely to companies within the charge to corporation tax.