This week we bring you the most recent news and information bulletin from HMRC and the latest Agent Update 115 was published last month. Readers are reminded that from 1 January 2024, the new reporting rules for digital platforms commenced and HMRC recently launched a new voluntarily disclosure facility to enable taxpayers to pay any unpaid tax on crypto assets.
Agent Update 115
Agent Update: issue 115 is available. Get the latest guidance and information including:
how to help contractors steer clear of tax avoidance schemes;
changes to the Self-Assessment helpline and Agent Dedicated Line;
changes to the process for claiming payment protection insurance tax relief repayments;
preparing for changes for goods moving from the island of Ireland to Great Britain which commence from the end of January 2024; and
national insurance contributions rate changes in 2024.
New reporting rules for digital platforms
Readers are reminded that from 1 January 2024, UK digital platform operators are required to report details of their sellers to HMRC. As a result, HMRC has updated its guidance on selling online and paying taxes. The guidance explains if you regularly sell goods or services through an online marketplace, this activity could be treated as a ‘trade’ for UK tax purposes, and you may have to pay tax on your profits. However, if you are just selling some unwanted items that have been laying around your home, such as the contents of a loft or garage, it is unlikely that you will have to pay tax. If you buy goods for resale or make goods with the intention of selling them for a profit, then you are likely to be trading and will have to pay tax on your profits.
However, if your total income from trading or providing services online was less than £1,000 (before deducting expenses) in any tax year, you are not required to inform HMRC nor pay any tax on the profits (this is due to the Trading and Miscellaneous Income Allowance).
Crypto asset disclosure facility
At the end of November 2023, HMRC launched a new voluntarily disclosure facility to enable taxpayers to pay any unpaid tax on crypto assets. The launch of this facility follows on from the joint statement earlier in November 2023 by the UK Government and 47 other countries, to implement new transparency and information sharing requirements in respect of crypto-asset platforms by 2027 via the Crypto-Asset Reporting Framework. The joint statement confirms the intention of signatories to implement that standard by 2027.
HMRC has now begun sending emails to some taxpayers which it believes has unpaid tax on crypto asset transactions.