News

Charity calls for applications to be heard in First-tier Tribunal

Coding out class 2 NICs

HMRC may collect outstanding class 2 National Insurance contributions (NICs) through PAYE code from April 2014. The department has have been writing to taxpayers it believes owe class 2 NICs, explaining that unpaid amounts may be collected through the PAYE code or be passed to a private debt collection agency. Coding notices will be issued between January and March 2014 if the NICs are to be gathered through PAYE.

HMRC have published an amended technical note on compensating adjustment rules, following a recent consultation.

The transfer pricing rules are designed to mainly avoid double taxation between individuals and connected companies on international transactions, but they also apply to transactions within the UK. An increase in the taxable profits of one party gives rise to a right of the counterparty to claim a corresponding tax reduction known as the compensating adjustment.

Entertainers are to set to be designated as self-employed for National Insurance (NI) purposes, following a decision by the government to repeal the current rules.

The change means actors, singers, musicians, and other performers will pay class 2 and class 4 National Insurance as self-employed earners from 6 April 2014.

Most entertainers were treated as self-employed for tax purposes until the introduction of regulations in 2003, which took such taxpayers to be employed for the sake of NI. 

Two in five workers could be paying wrong tax, claim accountants

HMRC say they are unable to correct the online time discrepancy between their own validation service that uses British standard time and the government gateway, which employs Greenwich mean time, because the latter service is used by parties other than the tax department.

The announcement is included in the latest edition of Agent Update, the bi-monthly round up of news for tax advisers.

PAYE schemes on which there has been no activity for at least 120 days will be automatically cancelled, HMRC have announced.

A letter – an RTI206 – will be issued to an employer of a shutdown, following an automated review of Revenue records.

The department claimed the new approach will allow officials to identify at a much earlier point that no returns are due – and it removes the obligation to make real-time submissions and subsequent requests for both returns and payment.

PDV update

HMRC have updated the PAYE desktop viewer (PDV) application. Users should download and install the new version of the viewer as soon as possible.

Information exchange

The UK has published intergovernmental agreements to improve international tax compliance that were signed with Guernsey and Jersey on 22 October 2013.

HMRC are to once again revamp their business records check (BRC) programme, putting greater emphasis on educating taxpayers.

Professional accounting body calls for simplification

HMRC have introduced a system of electronic messages intended to help employers keep their PAYE up to date.

The first alert will be sent to employers who are suspected of having submitted a late full payment submission. Recipients must ensure they get their business ready to submit
PAYE returns on time from 6 April 2014 to avoid potential in-year penalties in 2014/15, said the Revenue.

A new VAT return has been proposed for the European Union (EU) to be a standard across all members, in an effort to cut red-tape for firms, ease tax compliance and improve the efficiency of tax authorities.

The European Commission’s plan envisages a uniform set of requirements for businesses when filing VAT returns, regardless of the member state in which they do it.

The standard return, which would replace its national equivalents, would ensure firms are asked for the same basic information across the EU, within identical deadlines.