In this week’s miscellaneous updates, the latest Agent Update is available and HMRC has provided an update on the issue of voluntary Class 2 NIC contributions (NICs) being repaid in error. Regulations which exempt certain payments under the Horizon scandal have been laid and HMRC has published the July 2024 public service pensions remedy newsletter. HMRC has flagged to us a new fraud scam being sent by post. And finally, the latest schedule of HMRC live and recorded webinars for tax agents is also available for booking. Spaces are limited, so take a look now and save your place.
Latest Agent Update
Agent update: issue 122 is available now. Get the latest guidance and information including:
- How to support sole trader clients as they get started in business,
- Alcohol Duty – new digital service,
- Making a start on your client’s 2023/24 Self-Assessment tax return,
- Applying for healthcare cover in the EU, Iceland, Liechtenstein, Norway or Switzerland,
- How to avoid errors in claims for plant and machinery allowances.
Update on erroneously refunded voluntary Class 2 NICs
HMRC has provided an update on this issue which was previously outlined in Tax News and advises that the approximately 8,000 taxpayers affected have now been identified. HMRC aims to write to them in September 2024 to explain how to reinstate any voluntary class 2 NICs paid for 2022/23 and refunded in error and correct their NICs record, which is important for State Pension purposes.
HMRC apologises for the inconvenience and confusion this may have caused and aims to instigate measures to ensure this does not happen again.
Tax exemptions for postmasters
Regulations came into force from 16 August 2024, which have retrospective effect from 13 March 2024 for tax purposes, in order to exempt payments made under the Horizon Convictions Redress Scheme and the Horizon Shortfall Scheme (HSS) Fixed Sum Award. Payments are exempt from income tax, NICs and capital gains tax. Such payments are also exempt from inheritance tax, and any HSS Fixed Sum Award payments are exempt from corporation tax.
More information is available here:
- The Horizon Convictions Redress Scheme and Horizon Shortfall Scheme Fixed Sum Award (Tax Exemptions and Relief) Regulations 2024, SI 2024/818,
The Social Security (Contributions) (Amendment No. 4) Regulations 2024, SI 2024/822
- Government policy paper: The Horizon Convictions Redress Scheme and Horizon Shortfall Scheme Fixed Sum Award — tax treatment
New fraud scam letter
In recent weeks, a new letter has been circulating on social media (see photos attached here and here) which HMRC has confirmed it has not issued and is an example of fraudulent activity.
HMRC has made the Professional Bodies aware in order to share the information below to advise of the correct steps to take should you have any further concerns or incidents about suspicious contact. The update from HMRC is as follows:
“Criminals are great pretenders. They use various methods to try and dupe citizens, and often mimic government messages to make them appear authentic.
Tax scams come in many forms. Some offer a rebate, others tell you that your tax details are out of date or threaten immediate arrest for tax evasion. Never let yourself be rushed. If someone contacts you saying they’re HMRC, wanting you to urgently transfer money or give personal information, be on your guard. We will also never ring up threatening arrest. Only criminals do that.
Unexpected contacts like these should set alarm bells ringing, so take your time and check HMRC scams advice on GOV.UK.”
Background
HMRC’s Advice
Protect
- Criminals are cunning - protect your information.
- Take a moment to think before parting with your money or information.
- Use strong and different passwords on all your accounts so criminals are less able to target you.
Recognise
- If a phone call, text, letter or email is suspicious or unexpected, don’t give out private information or reply, and don’t download attachments or click on links.
- Check on GOV.UK that the contact is genuinely from HMRC.
- Do not trust caller ID on phones. Numbers can be spoofed.
Report
- If you’re unsure about a text claiming to be from HMRC forward it to 60599, or report a letter or email to phishing@hmrc.gov.uk. Report a tax scam phone call on GOV.UK.
- Contact your bank immediately if you’ve had money stolen, and report it to Action Fraud. In Scotland, contact the police on 101.
- By reporting phishing emails, you help stop criminal activity and prevent other people falling victim.”
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