Updates from HMRC

Agent update 96 and other updates issued by HMRC

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Making Tax Digital

Making Tax Digital (MTD) has now been extended to all VAT-registered businesses across the UK, meaning they should now be using software to keep records digitally and submit tax returns to HMRC.

Businesses must keep digital records from the start of their first MTD accounting period. To support businesses using MTD for the first time, HMRC has published new guidance outlining when to submit the first return.

If your clients have not already, they should choose the MTD software that is right for them as soon as possible. There are a range of compatible software products available for MTD for VAT, allowing businesses to choose which tools they use to run their business and tax affairs. You can see a list of software compatible with MTD for VAT, including free and low-cost options.

You can find more information on how to support your clients on GOV.UK.

Tax agent toolkits

HMRC has 20 Tax agent toolkits available for you to download and use. They have been designed to address the most common errors seen from previous years. They include checklists of the key issues to consider and links to HMRC technical guidance and manuals.

Here is the breakdown of toolkits by category:

By identifying the most common errors this may prompt a conversation between you and your clients to make sure submissions are correct.

Tax disputes

If your client is in dispute with HMRC over an appealable tax decision, you may be interested in HMRC’s Alternative Dispute Resolution (ADR) service.

This service involves an impartial HMRC mediator working with all parties to prevent unnecessary litigation.

The service aims to resolve tax disputes within 120 days using a collaborative and flexible approach, which does not affect your client’s right to appeal or review.

For more information, visit the ADR webpage.

Clients’ login details

HMRC is launching a campaign to warn customers of the dangers of sharing their login details with anyone, including their agent. Doing so opens them up to a greater risk of fraud. HMRC is urging them to treat their HMRC login details with the same level of care as their login details for their bank.

You may see messages in other HMRC communications, including social media activity over the coming weeks.

Members are reminded that under the Professional Conduct in Relation to Taxation standards, they should not be using client’s own login details to carry out agent work.

View further details of these and other updates in the full Agent Update 96.

Returns penalties factsheet

HMRC has updated its compliance checks factsheet, Penalties if you do not file Income Tax, Capital Gains Tax and Annual Tax on Enveloped Dwellings returns on time (CC/FS18a), to include details of its privacy policy.

HRA penalties factsheet

HMRC has updated its compliance checks factsheet, The Human Rights Act and penalties for not complying with a stop notice (CC/FS63), to include details of its privacy policy and how to obtain additional support.

List of professional bodies approved for tax relief (list 3)

HMRC has updated the list of professional bodies and learned societies with tax-deductible fees.

View the updated list at Approved professional organisations and learned societies (list 3).