This week we bring you news about a recent issue with student loan deductions and payrolled benefits in kind (“BIKs”) and HMRC is promoting the use of the ‘Pay by Bank Account’ service which is available from online filing services. Probate queries are now handled by the Courts and Tribunal Service instead of HMRC and a new toolkit is now available to help agents and advisers assess if a taxable remittance to the UK has been made. And finally, HMRC has issued a reminder email about recent changes to the UK’s research and development tax relief regimes, including the new claim notification form and the additional information form which must be used. And HMRC has also asked us to share with you an email on the McCloud Digital Service Launch and changes to the Agent Dedicated Line.
Issue with student loan deductions and payrolled BIKs
HMRC has recently identified that a small number of student loan borrowers have been overcharged student loan repayments on their Self-Assessment (“SA”) tax return. The issue has arisen because HMRC calculates student loan repayments using the total PAYE income declared on the SA return. However, student loan deductions are not due on payrolled BIKs that are not subject to Class 1 NIC.
Information is contained in Agent Update 112 on the steps HMRC is undertaking to correct this. In addition, guidance on the steps to take when completing the next SA return to prevent a reoccurrence of this issue are also available.
Paying HMRC using open banking – enhancement
HMRC has asked us to highlight its ‘Pay by Bank Account’ service (which makes use of opening banking technology) which is available from online filing services and which has recently been enhanced with further enhancements due to be launched soon. Previously the only option was to make an immediate payment to HMRC which sometimes made this unattractive for taxpayers filing their return in advance of the due date for payment of the relevant tax.
HMRC has recently enhanced the service to make it possible to schedule payment for a future date (which cannot be beyond the due date for payment). This feature is now live for the following taxes:
- VAT;
- PAYE;
- PAYE settlement agreement;
- PAYE late payment or filing penalty; and
- Class 1A NIC.
HMRC also intends the service to be available soon for:
- Capital gains tax;
- Self-assessment;
- Simple assessment;
- Corporation tax;
- VAT one stop shop;
- the soft drinks industry levy; and
- the plastic packaging tax.
Changes to probate phone lines
From Monday 2 October, HMRC is no longer offering a dedicated probate phone line. If a person has a probate query, they should contact the HM Courts and Tribunals Service probate phone line. If a person has an inheritance tax query, they should contact HMRC.
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