With the end of October deadline for paper filing now past, we are looking at how we can make sure the 31 January deadline for online filing runs as smoothly as possible. There have been a number of recent changes that should help this, but we are also looking at what specific measures we can put in place to support agents in meeting the deadline for their clients.
We are currently bringing together all the latest updates and information to help agents successfully file online. Look out for when this will be launched on the 'What's New' pages, or you can sign up for the HM Revenue & Customs (HMRC) RSS feed.
Latest updates and information for agents
If you want to submit an online Self Assessment (SA) return on behalf of your client using HMRC or third party software, you should first of all be authorised by your client. You can do this using the online agent authorisation process.
Find out about the online agent authorisation process
So that the authorisation application will be promptly and securely processed, please ensure that paper 64-8 applications are complete and include your client's National Insurance number, Unique Taxpayer Reference (UTR) number, if applicable, and your Agent Code.
Please leave plenty of time for your authorisation to take effect so that you can meet the 31 January 2010 filing deadline. We ask that you send applications for 64-8 agent authorisation and SA registration, outside the January peak times wherever possible as this does significantly help us to maintain a prompt service.
We put in place a number of successful initiatives in 2009 and are looking at how we build on these for 2010.
A 24 hour turnaround for SA agent authorisations was introduced between 5 January and 31 January 2009. Over 130,000 paper 64-8s were successfully processed within 24 hours of receipt in the Central Agent Authorisation Team (CAAT). As the majority of 64-8s are now processed within CAAT, we have been able to adopt this 24 hour turnaround target as 'business as usual'.
We also put in place a fast track Unique Taxpayer Reference (UTR) process for the newly self employed. 15,000 applications were successfully processed, significantly speeding up our processing times.
For cases where a paper 64-8 had been submitted but not processed, we introduced an 'emergency 64-8 fax' facility. This saw over 2,000 applications submitted and, where the application was appropriate and the information complete, authorisation was put in place within 24 hours of receipt.
The HMRC agents team is talking to various parts of HMRC to look into the feasibility of putting special arrangements in place this year and we are working with the Working Together Steering Group to ensure that any such arrangements will meet the needs of agents. Of course, we advise agents to allow plenty of time and to file as early as possible, avoiding the peaks as the deadline approaches.
Local Working Together (WT) is a forum for HMRC officers and tax practitioners to meet locally to discuss topics of mutual interest and raise issues. To get involved and find out about a local group near you, check the WT local directory.
We are delighted to confirm that the new model started operating on 3 November 2009. Each local group's co-ordinator sent the news to the members via email, including a note setting out the immediate practical consequences, and updating the groups on ongoing developments.
All future meetings will now follow the new model. The key change is that agents and HMRC co-ordinators will be working together on issues as they arise rather than waiting for the next meeting. So the new model has started for all groups, irrespective of when they are next due to meet.
The HMRC co-ordinators have new templates which will help them refer issues and run meetings. Local groups have been using an interim version of the issues template since 6 June, and we expect to see a continued improvement in the referrals made.
We have created and introduced a new issues register to control these referrals. HMRC co-ordinators can see this in real time on behalf of their groups - a crucial part of the process. We hope to extend this facility to agents in the future.
We are also working with colleagues in the wider HMRC and the Steering Group to streamline outgoing agent communications so that agents can easily check for news before taking issues to their co-ordinator.
We are working on a new quality assurance and control system. We hope to trial this early in the New Year and introduce it fully during 2010/2011.
Finally, we are delighted to announce that preparations are being made to create two virtual WT groups. These initial two 'WT e-groups' are being formed in partnership with AccountingWeb and Taxation. They will be complementary to the local groups, and they will refer issues in exactly the same way. A more detailed announcement will follow as soon as possible.
By the time you read this article, Learning Together (the new programme of joint training events for agents and HMRC staff) will be half way through the 2009/10 series of events. Before allowing the Learning Together team to take a break we asked them to provide some feedback for readers about the events to date.
Project leader James Pretty told WT : 'Before we started the first event, nobody was really sure whether the joint learning concept would work in practice. Fortunately it didn't take long to discover that the agents and HMRC attendees really enjoy having an opportunity to speak to each other about the compliance changes without the usual day-to-day pressure of work.'
James' initial impressions seem to be supported by feedback from the attendees themselves, who are extremely positive about the events. The following selection of quotes from event feedback forms confirms the value of working in this way :
'Working together in joint seminars is a great idea' (Luton agent)
'The best part was working alongside tax advisers and talking over their point of view' (Luton HMRC)
'These events should be regular as the new regime beds in, not just a one off' (Birmingham attendee)
'Very useful opportunity to speak with HMRC staff to discuss new penalty and compliance visits' (Cardiff agent)
Apart from being an excellent opportunity to share views between agents and HMRC officers, the events offer everyone a chance to consider the practical application of the new powers and penalties. After an initial overview of the new processes, the attendees are encouraged to get hands on and carry out their own penalty calculation as part of a case study exercise.
At the time of writing this there were still a few places available in the second batch of events in February and March. If you are interested, please check the Learning Together web pages for more details.
More information on Learning Together events
The HMRC National Working Together (WT) team co-ordinates the partnership with key agent representatives and is the central point for issues submitted by the local groups which are of national significance. The team meets on a quarterly basis with the Working Together Steering Group.
Read the minutes of these meetings
Many of the issues you refer to the national WT Team need IT or system changes to address them. These can be costly and need to be accommodated within our existing plans for IT updates which means that we are unable to deliver all of the changes that customers, including agents, might suggest.
One of the main improvements we want in the new WT model is to provide accurate analysis of the scale and impact of issues, so that the discussions and decisions on prioritising our efforts are fully informed by the experiences of agents. We are pleased to give you final news on two issues that have been concerning agents and where we have been able to use those concerns in addressing these issues. You will recall from WTB 33 that we withdrew the paper issue of form SA327 - the clients' account information sheet - at short notice before the December 2008 issue. This was due to changes in government wide data security guidelines. Since then, we have been working to understand what this withdrawal means for agents, and to see whether SA327s could be re-introduced in an affordable way that meets data security requirements and the needs of users. Some agents told us that the forms provided a useful payslip. Others indicated that they were essential where over-repayments meant they were unable to access a client's liability and payment records online. This access problem is the second issue referred to above. Where certain over-repayments existed on an account, agents and their clients would get error message SA0001 and would not be able to view the account.
Since the withdrawal of the SA327s, we have provided a downloadable pro-forma payslip at each payment peak in response to agents' concerns. We are pleased to tell you that we have started work on IT system changes to address the problem of viewing clients' payment and liability records online for accounts with over repayments. The national WT team is involved in the working group that is overseeing this, and we will work with agents to test the solution in due course. We hope that the fix will be made in April 2010. As a result of these measures and the costs of making the form SA327 security compliant we are unable to reintroduce these information sheets in the future. We know this will be disappointing for those agents who use the information sheets as part of their annual process but we hope the changes we are making will provide the necessary online support. We will be producing further guidance for agents ahead of 31 January 2010 on using the online tools that are available.
Two further toolkits have been developed by HMRC to make it easier for agents to get their clients' tax returns right first time. These are :
Each toolkit is packed with useful information including :
The use of the toolkits is entirely voluntary but those who do choose to use them will benefit from :
The current pilot will run up to 31 January 2010 and will be evaluated during February/March.
If you are interested in being involved in the pilot testing of the above two toolkits, please contact the project team.
Contact the Pre-return Support project team
We have made several enhancements to the services provided by the Central Agent Authorisation Team (CAAT) that will improve our customer service to you. Working with the WT Steering Group (Agent Authorisation Strategy working group) these initiatives addressed some specific concerns raised by agents. Although these initiatives are in the early stages of evaluation, we have already received feedback that agents have welcomed the changes.
We have received customer feedback that Self Assessment (SA) is the most important authorisation for agents. This authorisation enables agents to exchange and disclose SA information with HMRC to allow customers to meet filing deadlines and to discuss SA statements of account. CAAT now aim to process authorisation applications for Self Assessment within 24 hours of receipt in CAAT (weekends excepted).
You should be able to discuss your client's SA records with HMRC within 24 hours of your client's SA records being updated.
Within 72 hours and after the record being updated it will be possible to view your client's details online.
This is a significant improvement on the previous target of five working days. CAAT will also aim to process other authorisations within seven working days of receipt.
With immediate effect all 64-8s received in offices other than CAAT will now be forwarded on to CAAT to process, so that applications will benefit from the improved process in CAAT.
Please don't enclose any other papers, returns or correspondence with the 64-8 form. These documents should be sent to your client's tax office as normal.
To ensure your authorisation is in place in good time it would help if you could send applications for authorisations to the CAAT prior to submitting any other papers. That way, the systems that HMRC staff need to access will be updated with the correct agent details which will allow you, as the agent, to track and discuss your clients' tax affairs and receive correspondence from us in good time.
Therefore if you use a paper 64-8, please send directly to :
HM Revenue & Customs
The Central Agent Authorisation Team
Longbenton
Newcastle-upon-Tyne
NE98 1ZZ
There are a few exceptions to these arrangements. Paper 64-8s listed below should continue to be sent to the relevant HMRC office :
We are continually looking to improve our customer service and are currently reviewing the 64-8 exceptions which we expect will lead to a revision of the 64-8 form in due course.
The 64-8 form is available from :
We encourage agents to continue using the online agent authorisation service as this will save you and your client having to complete paper forms. A receipt is provided on-screen during the authorisation process that acknowledges HMRC has received the request. Using the online system also improves the accuracy of recording your details and benefits in managing clients' HMRC details.
We announced on 21 September that the large majority of all new Self Assessment (SA) registrations will now be processed by CAAT. This means that those SA registration applications, for non self-employed reasons, that were previously sent to local offices, will now be processed in CAAT.
The following businesses will have to file their VAT Returns online and pay any VAT due electronically, for periods that start on or after 1 April 2010 :
HMRC will calculate the turnover based on the VAT Returns filed in the 12 months prior to 2010.
More information on moving from paper to online VAT Returns
Once a business has been required to file VAT Returns online (including nil and repayment returns) they must continue to do so even if their turnover drops below £100,000 in the future.
One of the main complaints from agents concerning VAT Online has been that they themselves need to be VAT registered before they can file their clients' VAT Returns online. The possibility of an online service for non-VAT registered agents was raised back in 2006, and in the intervening time the WT e-group pressed for this to be included in the VAT element of HMRC's Carter Programme. The e-group is pleased that HMRC is now able to provide this facility.
HMRC has also included VAT Online within the online agent authorisation service, so you can now set up authorisation online for your clients.
Other changes to the VAT Online for Agents service are :
You can now file VAT Returns online for your clients. To get started you will need to request, online, a 'VAT agents reference number'. You can access this from the 'what you will need to enrol' page during the registration process. The agent reference number is displayed on-screen and you can then register and enrol for the VAT Online for Agents service.
After you register and enrol you will receive an activation code (PIN) through the post (within seven days) to 'activate' the service. You need to use the PIN within 28 days of the date of the letter enclosing it or the PIN will expire.
To file online for your client, you will need to go through the online authorisation process (this is required even if your client has already completed a paper authorisation 64-8).
To complete the authorisation process you'll need your client's :
Most of these details will be readily available. If neither you nor your client can find the VAT 4 (the client's certificate of VAT registration) which contains the effective date of registration information, your client can obtain a copy by contacting HMRC on Tel 0845 010 9000.
Once you have these five pieces of information, login to the online service, and in the 'Your services' section, click on the 'authorise client' link and follow the on-screen instructions.
HMRC will send your client a letter for each service that you have set up authorisation for. The letter contains a unique authorisation code you must use within 30 days. So it's important to tell your client to expect the letter and to let you have the code so you can enter it online and complete the authorisation process.
New VAT clients will appear on your client list within 24 hours of completing the authorisation process.
You have several months to populate your client list before compulsory online filing of VAT Returns comes into effect. We recommend that you take the opportunity to obtain any missing information you may have for your clients as part of any contact you have with them in this interim period.
As a result of discussions at WT Steering group, HMRC has agreed that, with immediate effect, except as indicated below, form CG34s for individuals, partnerships and personal representatives should be sent direct to the Capital Gains Team in Cardiff :
The Capital Gains Team (Individuals & Public Bodies)
16 West
Government Buildings
Ty Glas Road
Llanishen
Cardiff
CF14 5FP
Customers dealt with by our High Net Worth Units, Trust Offices or Public Department 1 should continue to send CG34s to those offices.
At present, the team in Cardiff is unable to handle technical queries by telephone but we are looking at how we might provide this type of service in the future. We appreciate that you may want to check on the progress of form CG34 if there are delays and in this respect one of our support teams in Bristol will be able to help you. We ask agents to not use this facility unless the CG34 has been with HMRC for a minimum of 56 days after which time enquiries can be made on Tel 0117 907 2466.
We would remind practitioners that all CG34s must be accompanied by all the relevant documentation to allow HMRC to arrive at an informed view on the valuation proposed - for example any professional valuations obtained as well as CG computations. Any submissions not meeting this requirement will be returned to you to supply the further information and re-submit.
We would also ask those intending to use the CG34 process to do so as soon as they have the appropriate information to hand, rather than delaying, as we may not be able to complete any valuation check submitted less than two months before your client's return is filed.
HMRC is committed to delivering an improved service to its Pay As You Earn (PAYE) customers who rely on us to ensure that they are paying the right amount of tax and National Insurance, at the right time.
The new system for processing PAYE, called the National Insurance and PAYE Service (NPS), which has one single record for each individual customer containing all their PAYE details, is helping to make this happen.
The new system is being introduced in three phases, with the first upgrade of 15 major IT systems across HMRC and the Department for Work and Pensions having been successfully delivered in June 2009.
HMRC is, however, aware of some issues for agents following the upgrade. Details of these issues and the resolutions are on the website and we're working hard to resolve them as soon as we can.
This upgrade was successfully delivered on 23 November 2009. It introduced improvements for updating tax codes on a daily and annual basis and also the ability to reconcile a customer's record covering one or more years. The upgrade also enables the new system to automatically flag up PAYE cases that have missing information, so that HMRC can put them right.
In January 2010, HMRC will undertake the first annual coding run using NPS. Testing for this is going well.
Testing is also on track for the final upgrade - release 4.2 in April 2010.
From April 2010, NPS will automatically identify the reasons why an underpayment
or overpayment of tax has occurred, then either trigger the coding of the
underpayment or issue the repayment. The ability to reconcile and re-reconcile
multiple years before 2008-09 will also be introduced.
In addition, the facility to change the frequency of issue of targeted review
forms (such as form P810) and issue them outside the annual run will be introduced.
HMRC anticipates that these two upgrades will improve customers' experiences even further and you can keep up to date with progress by checking out our website.
If your client owes less than £2000, you can opt to have it collected through the tax code where appropriate. To do this, you must make the return, and indicate that this facility is required by 30 December. Last year, the facility was not disabled as it should have been after 30 December. We can confirm that this year, the box will be disabled after that date.
The First Secretary to the Treasury, Stephen Timms, launched HMRC's Charter on 11 November. It sets out the rights and obligations of customers when dealing with HMRC. It is available to customers through the website, and customers with disabilities can obtain copies in alternative formats.
The Inland Revenue and HM Customs and Excise previously had taxpayer charters which set out areas such as service standards. Since their publication the two organisations have merged and the Department's business has expanded to take on work such as Child Benefit, Tax Credits, the National Minimum Wage and collection of student loans.
So in January 2008, ministers commissioned HMRC to work with stakeholders to develop a new Charter. We carried out an extensive consultation exercise, engaging with those who will use the Charter: customers, agents, stakeholders and HMRC staff. This research gave us a good insight into what both customers and staff need from a Charter for the new organisation.
The Charter has a lot of benefits for businesses and individuals who deal with HMRC. It clarifies expectations and sets out what customers can expect in their dealings with us such as :
Permanent Secretary for Tax, Dave Hartnett explains: 'The Charter's key aim is to improve the relationship between HMRC and our customers, and we obviously have a crucial role in making that possible. But we can't do it all on our own. Both parties have a part to play, and that's why the Charter sets out people's rights and their responsibilities.'
You may need to check the deadlines for repayment claims for your Self Assessment (SA) customers.
If you think they are entitled to make repayment claims for the 2004-05 and 2005-06 tax years they need to file these claims by 31 March 2010 and 5 April 2010 respectively.
More on deadlines for Self Assessment repayment claims
You will also find the new deadlines for repayment claims for PAYE taxpayers, but these are less pressing.
The changing deadlines for SA and PAYE repayment claims are part of wider changes to time limits across the main taxes for both assessments and claims.
HMRC is introducing standard powers and systems across its taxes where possible, to make the tax system simpler and more consistent.
One such change is new time limits to assessments and claims for Income Tax, Capital Gains Tax, Corporation Tax and VAT. The normal time limit for most assessments and claims will be four years from the end of the relevant tax period.
The new time limits came into effect on 1 April 2009 for VAT and take effect on 1 April 2010 for direct taxes. They apply to claims and assessments made after these dates regardless of the period the assessment or claim relates to.
Please refer to the legislation, Schedule 39 of the 2008 Finance Act and our technical guidance.
Schedule 39 of the 2008 Finance Act
Read the technical guidance on the new time limits
Keep up to date with news for tax agents and advisers by looking out for Agent Update, HMRCs other e-Bulletin, which is published every two months on the HMRC website.
Latest news for agents and advisers
Until recently we were unable to produce fully accessible PDF files of the Bulletin for the benefit of all our customers, especially those with disabilities. We therefore additionally provide an HTML version.
In order to meet the 31 December deadline by which all Government websites must reach AA software standards we have now created a fully accessible PDF with 'live' links. This means that from WTB 39 (March 2010) we will no longer need to produce the html version and we therefore intend to withdraw it.
If you have any further queries on this matter please refer them to the editor.
