Tax

Revenue has postponed the introduction of the DWT real-time reporting changes that were planned for January 2021.   According to Revenue, this decision to postpone the real time reporting system was made having regard to a range of factors, one being the scale of the challenge facing the industry in preparing for the transfer of the Irish equities market to a new settlement system by March 2021.  Such a challenge was highlighted in the submission made by Chartered Accountants Ireland, under the auspices of CCAB-I.  Per Revenue eBrief No. 087/20, Revenue will engage with stakeholders in advance of the resumption of the change management programme and will ensure that adequate time is allocated to the delivery of any development work associated with DWT real-time reporting.  Revenue intends to publish the outcome of the consultation held with stakeholders, which included Chartered Accountants Ireland, in due course. 

May 25, 2020
Tax

The closing date for submission of claims under the VAT Compensation Scheme has been extended this year, from 30 June 2020 to 31 August 2020. This is a temporary measure and applies to claims submitted in respect of eligible VAT paid by charities in 2019. Charities are encouraged, however, to continue to submit their claims as early as possible via Revenue's Online Service (ROS).   The Revenue Tax and Duty Manual VAT Compensation Scheme Guidelines makes reference to this temporary measure and further information about the Scheme is available on the Revenue website.     

May 25, 2020
Tax

Revenue Tax and Duty Manual Part 05-01-20 has been amended to include information on the tax treatment of locum practices who incorporate their business.  This manual sets out Revenue’s position on the status (employed or self-employed) of individuals described, correctly or otherwise, as ‘locums’ in the fields of medicine, health care and pharmacy, and the incorporation of medical locum practices. 

May 25, 2020
Tax UK

Members can visit our dedicated UK Coronavirus Job Retention Scheme (“CJRS”) page, which provides guidance on the scheme. Download our factsheet on the who, what, where, when and why of the scheme.    Readers are advised to ensure they are using the latest CJRS, to bookmark the relevant links and print a copy of the guidance which applied at the time a claim for the CJRS grant is made.   Details of last week’s guidance updates received from HMRC are set out.      Page title Changes made 1 Check if your employer can use the Coronavirus Job Retention Scheme Added a clarification that employee authorised salary deductions can be deducted from grant payments. Prompt and link added directing customers to check the impact on their tax credits. Corrected inconsistencies within the guidance around the dates of eligibility for the scheme. In principle making it clear that eligibility depends on employment on or after certain dates. This clears up inconsistencies and brings the entirety of the guidance in line with the published direction. 2 Check if you can claim for your employee's wages through the Coronavirus Job Retention Scheme No changes. 3 Check which employees you can put on furlough to use the Coronavirus Job Retention Scheme Corrected inconsistencies within the guidance around the dates of eligibility for the scheme. In principle making it clear that eligibility depends on employment on or after certain dates. This clears up inconsistencies and brings the entirety of the guidance in line with the published direction. Added new detail to reflect the new direction on what duties pension trustees can undertake whilst on furlough Added new detail to reflect the new direction on the extension of CJRS eligibility to cases where TUPE would have applied were it not for the company being in compulsory liquidation. 4 Work out 80% of your employees' wages to claim through the Coronavirus Job Retention Scheme Removed two items from the list of calculator exceptions to reflect new functionality being rolled out. Clarified that the amount claimed for NICs cannot be more than 13.8% of the grant claimed for the employee's wages. 5 Examples for ‘Work out 80% of your employees' wages to claim through the Coronavirus Job Retention Scheme’ Examples tweaked to exhibit that the amount claimed for NICs cannot be more than 13.8% of the grant claimed for the employee's wages. 6 Claim for wages through the Coronavirus Job Retention Scheme Added clarification that employers will need to know the seperate amounts of NIC's, Pension and wages that they are claiming for. Added a clarification that employee authorised salary deductions can be deducted from grant payments. 7 Reporting employees' wages to HMRC when you've claimed through the Coronavirus Job Retention Scheme No changes.

May 25, 2020
Tax

In the May issue of tax. point, Mark Doyle, and Amanda Jayne Comyn write on the possibilities for mitigating future increased tax burdens.  Sarah Fitzgerald outlines some of the key tax measures introduced by the UK government because of the COVID-19 global pandemic.  Regular tax updates in Ireland, the UK and internationally as well as Brexit and Public Policy developments, also feature.  We expect that subscribers to tax.point will receive their May issue by post. The May issue is now available on TaxSource Total.  

May 25, 2020
Tax UK

Check our dedicated SEISS page and download our factsheet on the scheme. Taxpayers or their agents are able to ask for a review of eligibility for the scheme via the eligibility checker.   If the eligibility checker gives a not eligible result, an option is then available to compete an online form to request a review of this result. The form will then ask if you are an agent completing this on behalf of a client. The taxpayer or their agent can proceed from this point to request a review of eligibility status.   It’s also possible to request a review of the SEISS grant awarded which is also done via an online form. Agents doing so for their clients are advised first to use their own agent portal government gateway sign in details and then complete the online form on behalf of their client.    In order to do so agents will need the following information:  The grant claim reference number;  Both their client’s national insurance number and UTR; and  Specific details about why they believe the grant amount is incorrect.  Taxpayers wishing to ask for a review of the amount received can access the online form to request a review during the claims process or afterwards which must be done using their own government gateway sign in details.    HMRC advise taxpayers and agents to check their guidance before asking for a review.  

May 25, 2020
Tax UK

At a time when many people are vulnerable and possibly more susceptible to these phishing attempts, HMRC has asked us to share the below document on scams including COVID-19 related attempts.  “Background   As a well-known organisation with a recognisable brand, HMRC is a target for scammers.    We see HMRC-branded tax scam campaigns throughout the year, peaking at different times in line with many of our key business events (for example around the Self Assessment deadline in January).   HMRC has a dedicated Customer Protection Team, which prevents scams by:   automatically identifying most cyber scams before customer have even reported them to us   asking Internet Service Providers (ISPs) to remove the malicious content from the websites   deploying innovative technologies to prevent misleading and malicious communications ever reaching our citizens   warning the public through sharing details and examples of genuine and scam communications on GOV.UK and through the media   maintaining channels through which people can report suspicious contact, at phishing@hmrc.gov.uk and 60599 for texts   working with the telecoms industry to identify abuses of the words in texts that can be used in place of 11-digit 07 numbers, and requesting that they are blocked automatically   working with national and international law enforcement organisations.   Our work in this area has meant that HMRC has dropped from 14th to 146th most-phished brand in the world over three years. However, we know we can never be complacent.   Covid-related scams   Criminals are taking advantage of the package of measures announced by the Government to support people and businesses affected by coronavirus.   HMRC has detected more than 70 Covid-related financial scams to date, most by text message and some by email.  So far, we have asked Internet Service Providers to take down more than 500 web pages associated with these Covid-related scam campaigns.   Radio campaign   In addition to our ongoing work to warn customers about scams, we are running a radio ad campaign, during May, to alert people to an increased threat of scams.   We are supporting the radio ads with social media posts, including on Twitter, Facebook and LinkedIn.   We are also working closely with the Home Office, National Cyber Security Centre and other government departments, helping to coordinate efforts to combat scams.   How you can help   Please help to fight these scams by supporting our social media campaigns:   On Twitter: https://twitter.com/HMRCgovuk/status/1260132818723770368   On LinkedIn: https://www.linkedin.com/posts/hmrc_protect-yourself-from-scams-visit-our-youtube-activity-6665898489966325760-KuaB   On Facebook: https://www.facebook.com/1593145090967383/posts/2658175957797619/?d=n   We have also posted a video about scams on YouTube: https://www.youtube.com/watch?v=ea8t8glczGQ    HMRC’s radio ads advice   At HMRC, we’re working hard to fight tax scams during the Coronavirus pandemic.   Here’s how you can also protect yourself:   Be alert - Think before parting with your information or money.    Be calm – It’s ok to refuse requests. If you feel rushed, it could be a scam.   Be secure - Tell HMRC and your bank if you think you’ve been a victim.   If it doesn’t feel right, it probably isn’t. For more information search ‘scams’ on gov.uk.“   

May 25, 2020
Tax UK

HMRC are holding a number of COVID-19 support webinars with the latest information, guidance and tips to help you support your clients. There are a limited number of spaces, so book your place now.  COVID-19 Statutory Sick Pay Rebate Scheme: choose a date and time  This webinar provides an overview of the scheme, looks at who can claim, when to start paying SSP, employees you can claim for, making a claim, keeping records, and more.  Coronavirus Job Retention Scheme – How to make a claim: choose a date and time  This guides you through making a claim, including the essential information you need, what to do before you make your claim, calculating and processing claims.  COVID-19 Self-Employment Income Support Scheme (SEISS): choose a date and time  This webinar covers the aim of the scheme, who can apply, how much may be claimed, applying for the scheme, what happens after applications are made, and other support available.  COVID-19 SEISS – how to make a claim: choose a date and time  This webinar provides an overview of who can claim, how to claim, what's needed to make a claim, what happens after applications are made, and other support available.   

May 25, 2020
Tax UK

The latest coronavirus Stakeholder Digest is now available and provides a round-up of the supports available and administered by HMRC to help support the UK economy during the pandemic.  “The government has set up a dedicated support page where businesses can find the right support, advice and information to help with the impact of coronavirus.  Update on Self-Employment Income Support Scheme  Coronavirus Statutory Sick Pay Rebate Scheme  Coronavirus Job Retention Scheme - updates for employers and agents  Check the tax rules on waiving your income or donating to charity  Deferring Self Assessment payments on account  Protect yourself from scams  Government announces the UK Global Tariff  Update on the National Coronavirus Test & Trace Programme” 

May 25, 2020
Tax

The European Commission (EC) has published ‘European Semester Spring Package: Recommendations for a coordinated response to the COVID-19 pandemic’. The recommendations for Ireland include tax specific measures to broaden the tax base and address aggressive tax planning measures. The recommendations also cover areas such as investing in public health, preserving employment, investing people and skills, supporting the corporate sector money laundering.    The EC’s recommendations for Ireland acknowledge that Ireland has taken steps to address aggressive tax planning practices by implementing international and European agreed initiatives and taking some additional measures at national level. However the EC outline that ‘the high level of royalty and dividend payments as a percentage of GDP suggests that Ireland’s tax rules are used by companies that engage in aggressive tax planning, and the effectiveness of the national measures will have to be assessed.’  The EC also outlines that Ireland should broaden the tax base in order to make revenue more resilient to economic fluctuations and idiosyncratic shocks and strengthen the functioning of automatic stabilisers. It says that the high concentration of corporate taxes, with the top ten companies accounting for 45 percent of corporate taxes, their volatility and potentially transitory nature, along with their rising share in total tax proceeds underline the risks of relying excessively on these receipts for the financing of permanent current expenditure. 

May 25, 2020
Tax UK

HMRC and the UK Government continue to publish updates on COVID-19 related issues. When using a form or publication going forward or contacting HMRC, check you are using the most recent version or up to date way of contact which may have changed due to the pandemic.   HMRC has advised that this years preferred P800 processing approach is to process repayments to taxpayers first, where possible. However, this doesn’t mean that every repayment can go out before any underpayments; just those repayments where HMRC has the necessary information available at the start of the process  The Chancellor has made a further Treasury Direction in relation to the coronavirus Job Retention Scheme  HMRC has published a tax information and impact note in respect of the exemption for home-office expenses  HMRC has further updated the way they deal with Inheritance Tax due to the pandemic. Until further notice, HMRC will accept forms IHT100 and IHT 400 forms that are not physically signed from unrepresented trustees or from professional agents  HMRC has amended its manual guidance on DAC6 to clarify how 'reasonable excuse’ will apply in relation to the coronavirus pandemic  HMRC has published new guidance for parents applying for, or already receiving tax-free childcare and 30 hours free childcare, during the coronavirus pandemic  HMRC has published updated guidance on their Time to Pay pages setting out that taxpayers can choose how and when they can delay making a second self-assessment payment on account for the 2019-20 tax year  Watch videos and register for the free webinars to learn more about the support available to deal with the economic impacts of coronavirus  Updated HMRC data about the Coronavirus Job Retention Scheme and Self-Employment Income Support Scheme is available  Find out about taxable expenses and benefits when they are paid to employees because of coronavirus and how to report them to HMRC  Check which expenses are taxable if an employee works from home due to coronavirus

May 25, 2020
Tax UK

Set out below is a selection of the key updates, announcements, developments and guidance issued by HMRC in recent weeks to help businesses and individuals prepare for the post EU transition period. Note that some of the guidance still refers to a no-deal Brexit scenario. See our Brexit update also.    The UK has announced its new tariff regime the-UK Global Tariff. This will replace the EU’s Common External Tariff on 1 January 2021 at the end of the Transition Period  A command paper setting out the UK’s approach to the Northern Ireland Protocol has been published  The seventh European Union (Withdrawal) Act and Common Frameworks statutory report detailing the progress on the development of common frameworks has been published  The Chancellor of the Duchy of Lancaster’s statement in the House of Commons on the UK’s approach to the Northern Ireland Protocol has been published  Current expected processing times for applications to the EU Settlement Scheme are available  The Communiqué from the twenty-third meeting of the Joint Ministerial Committee (EU Negotiations) has been published   

May 25, 2020