At a recent meeting of HMRC’s Virtual Communications Group, a number of items of interest to our members were discussed, including letters to businesses regarding Making Tax Digital for VAT. These are set out below.
HMRC letters on the Self-Employed Income Support Scheme (SEISS)
We recently informed readers that HMRC has been writing to recipients of SEISS grants 4 and 5 where an overpayment appears to have been received. HMRC has confirmed that the receipt of this letter does not preclude HMRC from examining other aspects of COVID-supports received by these businesses, including any other SEISS grants received and job retention scheme grants. Other compliance work is still possible.
Anti-money laundering letters
As outlined in a Tax News story in January, HMRC is continuing to send letters to tax agents in the UK seeking confirmation of their anti-money laundering (“AML”) supervision status to avoid having their tax agent codes suspended. AML supervision is undertaken by the Institute’s Professional Standards department. Any member who receives one of these letters must act on it to ensure they are able to continue to act as an agent on behalf of their clients. Failure to act can lead losing access to some HMRC online services including signing into their HMRC agent online account.
Members of Chartered Accountants Ireland who are supervised by the Institute for AML purposes can seek the relevant confirmation letter using the following link:- HMRC AML Supervisor Confirmation Letter.
The Institute recently launched webpages providing information and resources to members in the area of anti-money laundering. The pages are located on the Institute’s technical hub (please click here to access) and cover both the Republic of Ireland and the UK on areas such as legislation, supervision, reporting requirements, red flags, know the signs and other resources which we hope members will find useful.
Making Tax Digital for VAT
HMRC is sending its second round of letters to businesses with turnover less than £85,000 who are required to meet the conditions of MTD for VAT from 1 April 2022. A third letter will also be sent this month before the next 7 July 2022 VAT filing and payment deadline. HMRC is also in discussions regarding closure of its online VAT portal to encourage MTD for VAT take up by this population.