Check out the latest items on the Agent Forum. Remember, in order to view each item, you must be signed up and logged in.   All agents, who are a member of a professional body, are also invited to join HMRC’s Agent Forum. This dedicated Agent Forum is hosted in a private area within the HMRC’s Online Taxpayer Forum. You can interact with other agents and HMRC experts to discuss topical issues and processes. 

In Irish news, the CCAB-I has written to the Taoiseach and Minister for Finance highlighting difficulties around the new rules concerning the tax treatment of GMS income of General Practitioners which take effect next year and Revenue has updated its process to allow for the automatic offset of RCT credits against tax liabilities. In UK news, from Monday 2 October, waiting times on the Agent Dedicated Line will increase and the 2022/23 self-assessment registration deadline is approaching next week. In International news, the OECD has published comments received on Amount B of Pillar One.  Ireland The Institute, under the auspices of the CCAB-I, wrote to the Taoiseach, Leo Varadkar T.D., and the Minister for Finance, Michael McGrath T.D., with concerns about the tax treatment of General Medical Services (GMS) income of General Practitioners (GPs) which will change from 1 January 2024. Revenue has updated its process to automatically offset relevant contracts tax (RCT) credits against tax liabilities as they fall due and tax returns are filed. UK From Monday 2 October, waiting times on the Agent Dedicated Line are expected to increase. The 2022/23 self-assessment registration deadline is approaching next week. International The OECD has published comments received on Amount B of Pillar One Keep up to date with all the latest Irish, UK, and international tax developments through Chartered Accountants Ireland’s Tax Newsletter. Subscribe to the Tax News by updating your preferences in MyAccount. You can also read this week’s EU exit corner here.          

Back in July, the OECD invited public comments on Amount B under Pillar One. Amount B relates to the rules which aim to simplify and streamline the application of the arm's length principle. The OECD has now published the comments received. 

Next week representatives from the Institute’s Northern Ireland Tax Committee and a number of VAT specialists from local member firms are meeting with HMRC’s VAT policy team to discuss the end of the second-hand motor vehicle VAT margin scheme on 31 October 2023. We need your assistance in gathering supporting evidence to lobby for an extension to the scheme’s deadline. Read below for the supporting evidence requested by HMRC. The meeting will also be an opportunity to discuss the new second-hand motor vehicle VAT related payment scheme. Feedback on the end of the VAT margin scheme and the new VAT related payment scheme should be emailed to the Institute by the end of Monday 2 October 2023. As advised earlier this month, only vehicles moved from Great Britain to Northern Ireland before 1 May 2023 which are sold by 31 October 2023 qualify for the VAT margin scheme; if sold after 31 October 2023, VAT will need to be charged on the full selling price of the vehicle, and not the margin made. We are aware that many second-hand car dealers have significant pre-1 May 2023 stock of these vehicles, which are selling very slowly due to the ongoing inflationary crisis and general economic conditions.   If sold after 31‌‌‌ October 2023, VAT must be accounted for on the full selling price of the vehicle as the conditions for the new second-hand motor vehicle payment scheme, which only applies to eligible motor vehicles moved from Great Britain to Northern Ireland after 30 April 2023, will not be met.  The Institute highlighted this issue to HMRC earlier in the month; as a result, HMRC has requested details or estimates in respect of the following:- The numbers of second-hand vehicles dealers in Northern Ireland had in stock on 1 May 2023 that were sourced from Great Britain; How many of these remain unsold at present, and their estimated value; How many are likely to be unsold on 31 October 2023, and their estimated  value; and If there is any category of vehicle that may be particularly affected by having a cut-off date of 31 October 2023 after which the margin scheme could no longer be used. We recognise that many dealers may not be able to provide all of the detail requested in such a short period of time, especially the category of vehicle, but any information or evidence to support the difficulties being experienced in selling these vehicles would be appreciated.

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.