Agent update: 25 August 2021

HMRC has published Agent Update issue 87 (August 2021) providing a round-up of recent developments for tax agents and advisers, including the following:

–        Recent Making Tax Digital updates, including:

–        publication of an independent report on the impact of MTD for VAT;

–        invitation for agents to sign clients up to MTD for income tax from 6 April 2022 (one year ahead of the mandated start date, to help spread the load of sign-up work); and

–        revised guidance on gov.uk – particularly around agent authorisations, including explaining the difference between the Agent Services Account (which will become the primary account) and the HMRC Online Services for Agents Account (which will be mainly for legacy services).

–        Basis period reform consultation – the proposed move from ‘current year basis’ to ‘tax year basis’ is intended to ‘simplify the tax system before the introduction of Making Tax Digital for income tax’ although, on current plans, it would come into effect for the 2023–24 tax year, with 2022–23 as a year of transition. The consultation runs until 31 August 2021.

–        The latest Coronavirus Job Retention Scheme (CJRS) guidance – including a reminder for businesses that the deadline for CJRS claims for August is Tuesday 14 September 2021.

–        EU Settlement Scheme – guidance on late applications for the scheme, employers’ right to work checks and support for EU, EEA and Swiss employees.

–        Social security co-ordination and Covid-19 – reminder that HMRC will take individual circumstances into account in cases where an employee’s location has changed temporarily because of Covid-19 travel restrictions.

–        Off-payroll working rules – reminder to tax agents to make sure that their clients apply the rules correctly, including where clients are required to decide whether the rules apply for workers they engage.

–        Trust Registration Service (TRS) – the TRS will open for non-taxable trust registrations from the beginning of September 2021.

–        Inheritance tax – a new tool has been published on gov.uk to provide guidance on whether IHT needs to be paid on a deceased person’s estate.

–        Agent Forum and Issues Overview Group – agents are invited to highlight priority issues via their professional bodies for ‘review and progression’ at the 1 September meeting of the IOG. Current issues include the CGT 30-day reporting/payment window and the interaction between the UK Property Reporting Service and self-assessment.

–        Customs Declaration Service (CDS) to become the UK’s single customs platform — CDS will replace CHIEF from 31 March 2023 for all declarations and, from this date, all goods will need to be declared through CDS.