Agent Update June-July 2009 issue 12
Tax
Capital Gains Tax
HMRC is producing a series of voluntary toolkits for agents to use. These will provide guidance on risk to compliance and how agents can minimise mistakes in the tax returns they submit. The Association of Chartered Certified Accountants (ACCA), one of our Compliance Reform Forum (CRF) partners, have worked with us to produce a vodcast to publicise the toolkits and explain how agents can get involved in the pilot. The first toolkit, Capital Gains Tax for trusts and estates, launched at the end of May 2009.
Download the vodcast from the ACCA website (Opens new window)
Revenue & Customs Brief 30/09 allowable deductions in employee share options
This briefing clarifies the Capital Gains Tax deductions position of employees who acquired shares by exercising an option before 10 April 2003. It replaces previous advice.
Company Tax
Company Tax Returns to be filed online after 31 March 2011
In June 2009, HMRC sent an information leaflet to agents who represent companies and other organisations required to file Company Tax Returns. It reminds agents that Company Tax Returns must be filed online for all tax returns delivered after 31 March 2011 for accounting periods ending after 31 March 2010. The Company Return must also use a specified XBRL IT standard for accounts and computations. The leaflet helps agents discuss the changes with their clients and with their software provider along with details of where to obtain further help or information.
Excise Duties
New Notice 162 Cider Production (March 2009)
Notice 162 Cider Production (March 2009) has been published.This cancels and replaces Notice 162 Cider and Wine Production (March 2002), which has been split into two separate notices. A new Notice 163 Wine Production will be published shortly.
Finance Bill 2009
The Finance Bill 2009 has been published but an amendment to the Bill is to be tabled countering an avoidance scheme that has been disclosed to HMRC.
Money Laundering Regulations
New guidance for Money Service Businesses on the Counter Terrorism Act 2008
Full guidance for Money Service Businesses on complying with directions issued under the Counter Terrorism Act 2008, Schedule 7.
PAYE
Employer Bulletin including details of PAYE changes and minimum wage compliance
This print and online publication is aimed at employers and agents, with important information and news on payroll operation and other general topics.
These include Budget changes for future years, the new PAYE service - moving customers’ PAYE records away from the current 12 geographically arranged databases on to a single database, and the introduction (from 6 April 2009) of automatic penalties for non-compliance with the national minimum wage. There are also details of the new dedicated Business Payment Support Service for businesses experiencing temporary difficulties in meeting their tax liabilities.
This major IT upgrade will benefit you and your clients, since all PAYE records will be on one computer system for the first time. HMRC will be able to deal with all PAYE enquiries at the first point of contact and there should be less under or over-payment at the end of the tax year (especially when a client has more than one source of PAYE income).
Employer CD-ROM - updated to include 2009 Budget information
The Employer CD-ROM (June edition) contains most of the forms and guidance needed to run a payroll, along with calculators and on-screen forms to fill in and save to an employer or employee database. The CD-ROM has been updated to include 2009 Budget information.
PAYE: 2007-08 Penalties for outstanding Employer Annual Returns (P14s and P35s)
From 26 May 2009, HMRC started to send penalty notices where its records show that 2007-08 Employer Annual Returns (P14s and P35s) have not been received.
Penalties
New version of Code of Practice 9
Code of Practice 9 has been updated to take account of the new appeals process and penalty regime that came into force on 1 April 2009.
Pension Schemes
Pension Schemes Newsletter 37 anti-forestalling legislation
Pensions Newsletter 37 has been published, which has an item on the Budget announcements concerning pension savings - including the immediate introduction of anti-forestalling legislation (Budget Note 47). Responding to concerns by the pensions industry, HMRC has also explained how they will apply certain key pieces of pensions tax legislation.
Review of HMRC’s Powers, Deterrents and Safeguards
Implementation Oversight Forum
This Forum met for the first time on 30 March 2009. The agenda, papers and minutes have now been published.
Review of HMRC’s Powers, Deterrents and Safeguards
This document outlines further modernisation of HMRC’s tax administration.
Share Option Schemes
Change in bonus rates for SAYE Share Option Schemes
Changes to bonus and interest rates for Save As You Earn (SAYE) Share Option Schemes (sometimes referred to as ‘Sharesave’) became effective from 29 May 2009.
VAT
From 2010 there will be changes to the VAT accounting and reporting procedures, which need to be consistently applied across the EU, to simplify the current cross-border rules and make VAT collection from overseas more efficient and to counter VAT fraud.
Sending your VAT Return or payment to HMRC
These guidance notes explain how to fill in VAT forms online and the various payment methods that HMRC accepts.
Revenue & Customs Brief 32/09 ‘Pringles’ VAT verdict
Retailers must now add VAT to Pringles, after the Appeal Court decided in favour of HMRC that the snacks are standard-rated for VAT.
Revenue & Customs brief 31/09 tax implications of the Vehicle Scrappage Scheme
This briefing explains the tax implications for manufacturers, dealers and customers of the Vehicle Scrappage Scheme.
Reminder about submitting VAT Returns
In order to minimise scanning errors when completed VAT Returns (VAT 100) are inputted, only the original centrally issued VAT Return must be completed and submitted. If a VAT Return form is lost or mislaid, please request a replacement from HMRC’s National Advice Service on Tel 0845 010 9000. Please do not submit photocopied VAT Returns or any other form of adapted VAT Return.
Working Together (WT)
WT 35 includes HMRC updates and articles on the new Working Together model, the R40 form process, an explanation about the delays some of our customers are experiencing in receiving repayments and how to get your agent code.
