This week we bring you news of a new form which HMRC plans to launch over the summer to provide details of overlap relief for some taxpayers. A new form is now available for claiming the marriage allowance, and HMRC’s teams have responded to queries on VAT and the self-assessment online return form. A new compliance campaign has also been opened, and HMRC is contacting companies with an identified error in an R&D tax relief claim. HMRC’s latest News and Information Bulletin is also available.
Overlap relief information request form
At some point over summer 2023, HMRC aims to launch an online form for overlap relief requests as part of the move to basis period reform. The Institute, in its response to the basis period reform consultation in summer 2021, recommended that HMRC provide this information to taxpayers where it was held in its systems.
Any unincorporated businesses with a non-31 March or 5 April accounting period end are able, in the transitional tax year 2023/24 of basis period reform, to use an unused overlap relief carried forward. This is particularly important as any profits not already assessed for tax must be included in the assessment for 2023/24 but can be reduced by unused overlap relief.
HMRC will only be able to provide this information if it has been recorded in HMRC’s systems and included within submitted self-assessment returns for previous tax years.
If these details have not been recorded, HMRC intends to provide data to allow the taxpayer (or their agent) to calculate any unused overlap relief from the relevant self-employment data it does hold, and which is available in HMRC’s systems.
Requests for overlap information can be made ahead of the launch of the form. The following information is required to do so:-
- taxpayer name;
- national Insurance Number or unique taxpayer reference;
- name/description of the business;
- sole trader or partnership;
- partnership UTR, if relevant;
- date of commencement (if not known, tax year of commencement); and,
- most recent accounting period end date.
New marriage allowance postal claim form
HMRC has published a new form which allows taxpayers to apply for the marriage allowance by post. This allowance can now be claimed online, via a postal application, or by a claim in the self-assessment return. Previously, it was only possible to apply by post via letter.
VAT query
HMRC’s VAT team was asked whether a reason can be provided when a flat rate scheme application is denied. Details of a direct contact in order to appeal the decision was also sought. HMRC’s response is as follows:-
“If the decision to disallow the customer from joining the Flat Rate Scheme is appealable, then the Decision Maker will have advised the customer who to contact to appeal within their decision letter. If there are no contact details within the letter, this would be because the decision is not appealable. However, the customer may be able to get some information about why they were disallowed from joining the scheme from frsapplications.vrs@hmrc.gov.uk.”
Self-assessment online form query
HMRC was asked if the “for reference only” text on the Self-Assessment return (SA 100) could be removed as previously HMRC had confirmed that SA100’s printed from the GOV.UK page and posted are being accepted by HMRC hence the “for reference only” text is causing some confusion.
HMRC responded as follows:-
“We have noted the concern about the “for reference only” messaging and we will consider this as we monitor and review the changes to the SA100 gov.uk pages.
On the SA100 forms page, there is a link explaining how to request a paper return. The link appears immediately underneath the SA100 forms in the ‘Details’ section of the page. It connects to the Self-Assessment forms ordering service rather than the SA helpline.”
New compliance campaign launched
HMRC has recently launched a new compliance campaign targeting taxpayers named in the Pandora Papers. The campaign letter invites them to make use of the contractual disclosure facility or the worldwide disclosure facility and reminds taxpayers that penalties of up to 200 percent may be charged on the tax due on any overseas income and gains not declared. Since publication of the papers, HMRC has been using information to identify UK taxpayers who may have taxable income or gains they have not declared.
R&D tax relief compliance checks follow ups
We understand from HMRC’s R&D sub-group forum that HMRC has been writing to/emailing around 200 companies who have made an error in recent R&D tax relief claims asking them to complete a questionnaire providing feedback on their experience of the compliance check process. All responses to the questionnaire will be anonymised and personal details held securely.
All recipients of this contact were part of HMRC’s recent mandatory random enquiry programme. The questionnaire aims to help HMRC understand why the errors occurred and feedback will be used to inform HMRC processes, with an overall aim of help companies get R&D claims right first time.
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