Last week, HMRC announced via the latest Agent Update and an email to agents that from next Monday 2 October 2023 it will no longer aim to operate to a 10-minute service level on the Agent Dedicated Line (“ADL”), therefore waiting times may vary depending on how many agents are calling HMRC at any one time. The Institute wishes to make clear that it does not agree with HMRC that this change will allow an improvement in HMRC services. The announcement comes against the continuing backdrop of resource and budgetary pressures being experienced by HMRC. In addition to no longer working to a 10-minute wait time on the ADL, the announcement also confirms that from 2 October, information on call waiting times will be introduced, and PAYE queries will be re-routed to PAYE advisers, not those on the ADL. We have asked HMRC to provide more information on precisely what PAYE queries will be rerouted in order that agents may directly call the relevant helpline instead of calling the ADL and being rerouted. We have previously discussed the importance of the ADL with HMRC, and although the ADL will remain available, we are disappointed to see what will effectively be a reduction in service levels to agents. Coupled with the recent closure from 12 June to 4 September of the self-assessment (“SA”) helpline, we are concerned that this will have a serious impact on the ability of agents to support their clients in busy season in the next few months in the run up to the 2022/23 online SA filing deadline on 31 January 2024. The Institute will continue to discuss the impact of these changes, and HMRC service levels with HMRC. As the ADL changes take effect from next week, we want to hear from you about the impact that this change is having. Please get in touch by email to let us know so that we may represent your views at meetings with HMRC.

Thursday 5 October 2023 is the deadline to notify HMRC of a new source of income or gain for 2022/23. Last week HMRC also issued a reminder of this deadline. Those required to register for self-assessment include:- Anyone who is self-employed or a sole trader in a business which commenced in 2022/23; Anyone not self-employed but who had a new source of income or a gain in 2022/23; or Anyone who became a partner in a partnership or any new partnership which commenced in business in 2022/23.  Failure to register by the deadline can result in HMRC charging a failure to notify penalty.

This week we bring you an update from HMRC on the use of digital signatures and HMRC has published updated guidance on the patent box regime and senior accounting officer legislation. The advisory fuel rates which took effect from 1 September 2023 are available and HMRC has launched a new childcare manual. The House of Commons Treasury Committee has published a report following its inquiry on tax reliefs and new guidance on how to get a PAYE code adjusted for foreign tax has been published. HMRC has also provided an update on corporate criminal offence investigations and new Save As You Earn (“SAYE”) bonus rates and early leaver rates took effect from 18 August 2023. The latest Agent Update 112 is also available. Update on digital signatures Read the update below from HMRC on digital signatures. “HMRC accept digital signatures on the following forms: 64-8 (Agent Authorisation); Marriage Allowance; P87 and Hold Over Relief (HS295). For these forms, signatures signed on the screen of a digital device or displayed in a keyboard typed font will be accepted. All other claims and paper tax returns will still require a wet signature. Regardless of the type of signature, it must be provided by the taxpayer.  Where the taxpayer or agent submits a form or claim as part of a digital journey (e.g. submitting a tax return online) then their identity is verified as part of the digital journey and as such a signature is not required. During the Covid-19 pandemic, a number of easements were in place during this unprecedented national emergency. However, signatures are an important safeguard for taxpayers, which outside of a national emergency HMRC cannot dispense with.   HMRC accept a scan of a wet signature on holdover relief claims (form HS295) when this is attached to an online tax return.  In other circumstances we require a wet signature apart from those outlined above.   HMRC has issued guidance on record keeping. Records can be kept in a variety of formats: on paper, digitally or as part of a software program. However, there are some records that, by law, must be kept and preserved in their original form. For example, a C79 import VAT certificate (Record keeping for VAT notice 700/21). The Taxes Management Act 1970 s12B and the Finance Act 1998 Sch 18, para 22 provide further detailed information on record keeping including those records that must be preserved in their original form.   We are working on bringing the guidance together and will be issuing further updates in due course.”  Treasury Committee recommends review of tax reliefs The House of Commons Treasury Committee recently published the outcome of its inquiry into tax reliefs in a report which, unsurprisingly, concluded that the UK tax system is too complicated, and that the “huge and seemingly ever-expanding suite of tax reliefs” is an important factor in this. To promote a simpler, better value and more effective tax system which is less prone to abuse the Committee made the following recommendations:- a comprehensive and systematic review of existing tax reliefs to look for opportunities for simplification; HMRC should publish full costings of all tax reliefs; greater public consultation is needed on new and existing tax reliefs; ·non-structural tax reliefs, i.e., those designed to promote certain behaviour, should be classed as public spending, and scrutinised as such; and the Government should conduct five-year reviews of individual tax reliefs and commit to remove those reliefs that no longer serve their policy goal or are vulnerable to abuse. Relief for foreign taxes in PAYE codes If an employee works overseas, some overseas tax authorities may require their UK employer to deduct tax from the same earnings against which the employer also has to operate UK payroll. Where an employee’s PAYE code needs adjusted to give relief for foreign tax, HMRC advises the employee or their employer to make contact by phone, stating that their call relates to coding in accordance with section PAYE81715 of HMRC’s PAYE manual. HMRC release data on corporate criminal offence investigations HMRC has recently released updated data on the number of corporate criminal offence investigations in progress as at 30 June 2023. At that date, there were nine live investigations with a further 25 potential investigations under review, and 83 rejected. The Corporate Criminal Offences for failure to prevent the facilitation of tax evasion were introduced by Part 3 of the Criminal Finances Act 2017. With potentially unlimited fines for organisations found guilty of the offences, organisations must take their responsibilities seriously and put in place reasonable procedures to stop the facilitation of tax evasion. SAYE bonus rates According to the latest Employment Related Securities Bulletin, after the launch of the new Save As You Earn (“SAYE”) bonus rates automatic mechanism and specimen SAYE prospectus, new SAYE bonus rates and early leaver rate took effect from 18 August 2023. These are:- 3-year bonus rate: 1.1; 5-year bonus rate: 3.2; and early leaver rate: 1.42%. This is the first time that new participants will receive a bonus since 2014. Going forward, the rates will change on the 15th day following a change in the Bank of England Bank Rate. The next date the Bank of England may be expected to change the Bank Rate is next month as the Bank decided last week to maintain the base rate. HMRC will not routinely provide updates within Bulletins. However, the bonus rates, early leaver rate and the effective date of any change will be recorded in change in bonus rates for SAYE Share Option Schemes Agent Update 112 Get the latest guidance and information in Agent Update 112 including the following:- Alcohol Duty: apply the new duty rates and check the 2 new reliefs, before submitting a return this month; The Plastic Packaging Tax – mass balance approach consultation; Self-Assessment student loan deductions and payrolled benefits in kind; and Overlap relief – preparing for the new tax year basis.

Revenue has updated the Tax and Duty Manual which provides guidance on domestic implementation issues relating to the Common Reporting Standard (CRS). The updates consist of editorial changes and the deletion of obsolete material at paragraphs 18 and 19.   

Revenue has amended Chapter 29 of the Pensions Manual which deals with the encashment option for members of both private and public pension schemes. The updated material provides clarification over who qualifies for the encashment option and how declarations should be submitted to Revenue. Revenue’s relevant contact address is also updated.  

The Northern Ireland Tax Committee is still accepting feedback on the consultation examining potential new tax incentives for occupational health. Get in touch by Friday 29 September. This consultation is open until 12 October 2023 and specifically seeks views on how expanding the existing benefit in kind exemption for medical benefits could help employers provide more services, essentially helping people back into work.

Revenue has advised, at a recent meeting of the TALC MyEnquiries subgroup that the size of individual files that can be uploaded as part of the eCG50 process is increased to 11 MB. Where files are greater than 11 MB they must be zipped into parts to facilitate the upload. Revenue will amend its Tax and Duty Manual to reflect this development and to provide guidance on the zipping process. 

As reported last week, Revenue is continuing to issue notices to employers’ ROS inboxes, inviting them to register for webinars on the new Enhanced Reporting Requirements (ERR) for employers. The notice will contain a link to Eventbrite where a free ticket can be booked to attend a webinar on a suitable date and time. These webinars are scheduled to take place over the next 8 weeks. A sample event invitation can be viewed here.  The Institute has emphasised to Revenue the need for detailed and timely guidance for employers to prepare for the new reporting requirements. We will continue to liaise with Revenue and inform members via Tax News.   

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. We also update you on recent developments in relation to the Windsor Framework and the latest Trader Support Service bulletin is available. The Institute was also in attendance last week at the latest UK Domestic Advisory Group meeting. Windsor Framework update The House of Lords Protocol Sub-Committee on the Protocol is holding a follow-up evidence session on the implementation of the Windsor Framework. The UK Government has also now responded to the Committee’s report published in July. Various pieces of secondary legislation (set out below) have recently been published to implement the Windsor Framework and specifically the new trade operating model including the green and red lanes for agri-food and retail scheme which are due to commence later this week from 1 October. The House of Commons Library has published a briefing on the new rules for trading with the EU. The secondary legislation published is as follows:- Windsor Framework (Retail Movement Scheme: Public Health, Marketing and Organic Product Standards and Miscellaneous Provisions) Regulations 2023; Windsor Framework (Enforcement etc.) Regulations 2023. Windsor Framework (Retail Movement Scheme) Regulations 2023; Windsor Framework (Plant Health) Regulations 2023; Customs (Northern Ireland) (EU Exit) (Amendment) Regulations 2023 Windsor Framework (Financial Assistance) (Marking of Retail Goods) Regulations 2023; and Postal Packets (Miscellaneous Amendments) Regulations 2023. UK Domestic Advisory Group meeting Last week, the Institute was represented at the latest Domestic Advisory Group (“DAG”) meeting. The UK DAG is a consultative body designed to enable the government to hear from those most affected by the operation of the UK-EU Trade and Cooperation Agreement (“TCA”). The DAG has now established five sub-groups as follows, each of which reports back to the DAG on key issues with implementation of the TCA:- Trade and Customs; Regulatory Co-operation and Level Playing Field; Business and Labour Mobility; Energy and Climate Change; and Nations and Regions. Chartered Accountants Ireland participates in the Nations and Regions sub-group and would welcome your feedback on any issues specific to Northern Ireland. Readers are advised to note that the Windsor Framework is outside the remit of the UK DAG. In November, a further DAG meeting is scheduled to be held in advance of the annual UK-EU Joint DAG which the Institute will be attending. Miscellaneous updated guidance etc. The following updated guidance, and publications relevant to EU exit are available:- External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service; Smart watch straps, watch bands and watch bracelets (Tariff notice 11); Transit newsletters — HMRC updates; Register with the UK ID issuer if your business is involved in the supply of tobacco products; Simplified rates for bringing personal goods into the UK; and Moving goods out of Great Britain using transit: step by step. Search the register of customs agents and fast parcel operators Transit newsletters — HMRC updates Delaying declarations for goods brought into Great Britain List of goods imported into Great Britain from Ireland that are controlled Moving qualifying goods from Northern Ireland to the rest of the UK; and Apply to use simplified declarations for imports.  

Readers are reminded that the Temporary Business Energy Support Scheme (TBESS) claims deadline is 30 September 2023. As previously reported, claims cannot be made after this date. 

Tax news readers will be aware from previous news that the new non-resident landlord withholding tax (NLWT) system enables tenants or collection agents to make Rental Notifications (RN) when making payments to a non-resident landlord. Validation rules in the system require collection agents to enter the Tax Reference Number (TRN) of the non-resident landlord they represent while both tenants and collection agents are required to submit the local property tax (LPT) identifier of the property, depending on who is filing the RN.  Revenue is aware of validation issues arising in relation to the input of incorrect tax reference numbers or local property tax identifiers. Where an error message is returned, and following confirmation of the TRN/LPT details provided by the landlord, the tenant or collection agent should contact Revenue through MyEnquiries. Revenue has advised that the tenant or collection agent should also email the NLWT team directly at info_NLWT@revenue.ie quoting the Enquiry ID number. As this is not a secure channel, client data should not be included in the email.  

Last week, Institute representatives attended an information meeting hosted by the Department of Finance in conjunction with officials from Revenue. An update on the revised EU “Green Deal” General Block Exemption Regulation (GBER), which was adopted on 1 July 2023 and comes into effect from 1 January 2024, and its impact was provided.  GBER is a European Commission regulation that allows Member States to put certain State aid schemes into place without prior notification to the EU Commission, provided certain conditions are met. The Employment Investment Incentive (EII), the Start-Up Relief for Entrepreneurs (SURE) and the Start-Up Capital Incentive (SCI must comply with GBER for all shares issued on or after 13 October 2015.   A copy of the slides from the meeting are available here.