ISA Bulletin 1

April 2008

The ISA Bulletin keeps ISA managers informed of any new developments relating to the ISA scheme. Please ensure the appropriate people in your organisation read it.

We suggest that you keep Bulletins at the front of your copy of the Guidance Notes for ISA Managers.

What this Bulletin contains

This Bulletin contains articles on:

• 2008 ISA Guidance Notes – final version now available
• The HMRC Inspection – review of current procedures

Enquiries on this bulletin should be addressed to:

David Taylor
HM Revenue & Customs (SSO Bootle)
Room 320

Telephone 0151 472 6156

email: David Taylor

2008 ISA Guidance Notes – final version now available

The final version of the Guidance Notes for ISA Managers for 2008-09 onwards will be placed on the website at http://www.hmrc.gov.uk/isa/isa-guidance-notes-2008.pdf in the next few days, replacing the existing Draft version 2. At the same time we will remove the current Guidance Notes for PEP and ISA Managers.

The sidebars and highlights used in version 2 have been removed. Paragraphs now highlighted are those that have been changed to reflect comments received and the Bulletins that have been issued since version 2 was published. We would like to thank Managers and Representative Bodies who took the trouble to read and comment on the draft guidance.

The HMRC inspection – review of current procedures

Managers may be aware that we are reviewing our audit procedures for the Tax Deduction Scheme for Interest (TDSI). Once we have established a new framework we will start looking at the ISA audit regime. Until then, ISA audits will continue as now but at the point where the audit would normally be settled, managers can, if they wish, delay settlement until the new rules are finalised in case this will result in a more favourable outcome. We will give an assurance that managers will not be subject to a larger settlement if they adopt this approach. The manager can make a payment on account if they wish. For interest purposes, the clock will stop running from the date where settlement would have been reached under the current rules until the new rules come into force. For example, if an ongoing audit is finalised and figures agreed in mid May but the settlement is then put on hold until the new rules are published in, say July, interest will not run from mid May until July.

As we have not yet begun work on the revised audit procedures, we are not able to discuss any of the details, however, we will engage with the Representative Bodies in the near future.

Future Articles

Part of the purpose of the ISA Bulletins is to clarify areas of the Guidance Notes for ISA Managers. If you feel that any aspect of the guidance is unclear you should contact David Taylor. His telephone number is 0151-472-6156.