News

Employers using products from one particular software provider have received penalty warning notices from HMRC because they sent their end-of-year information on the wrong type of submission.

The problem affects businesses that:

HMRC have published a consultation document aimed at strengthening the code of practice on the taxation of banks, which has been adopted by 262 organisations since its introduction in 2009.

The condoc describes the approach expected of banks with regard to governance, tax planning and engagement with the Revenue, and discusses how the long-term effectiveness of the enhanced code can be ensured.

HMRC to tackle Project 2010

The European Commission has confirmed that 13 European Union member states will participate in a pilot for private VAT ruling requests relating to cross-border situations.

The initiative will operate from this month to the end of the year and involve the UK, Belgium, Cyprus, Estonia, France, Hungary, Latvia, Lithuania, Malta, the Netherlands, Portugal, Slovenia and Spain.

Taxable persons planning cross-border transactions between two or more of the participating member states can ask for rulings with regard to complex transactions.

Reporting relaxation extended to April 2014

HMRC issues CT600 reminder

Taxpayers making their first return and payment under the new machine games duty are finding it difficult to understand, according to HMRC.

The taxman has also encountered system issues that have confused some taxpayers and made it harder for them to comply.

As a result, the Revenue has decided not to apply penalties for the late submission of first returns. The concession will not apply to any other area.

The department states that taxpayers should ignore the fine if it shows up on their accounts; sanctions for late filing of first returns will be cancelled.

Money laundering

HMRC have reviewed their guidance on penalties for businesses under money laundering supervision and made amendments to clarify the approach. Amended guidance – to be available shortly – explains the range of actions – from warning letters to criminal prosecution – that the Revenue, as a supervisor, can take when firms breach regulations. Action will depend on the circumstances of the case and the impact and severity of the failings identified.

HMRC have launched a consultation on the avoidance of National Insurance (NI) and employment taxes by using offshore employers of workers based in the UK.

The document, Offshore Employment Intermediaries, is in two parts. The first is a technical look at creating an income tax and NI charge on offshore employers and moving the charge to an onshore engager of the labour if the employer fails to pay. Draft legislation will be published shortly.

Condoc seeks views on amended eligibility conditions

The joint initiative steering group on HMRC service delivery has announced steps to improve the department’s debt management processes.

The changes, which are expected from late summer, include a dedicated hotline for agents to use when there a field force collector at a client’s premises, and an unspecified “new technology” for the Revenue’s field force that allows officers on debt-collection calls receive up-to-date information.

Basic PAYE tools

The latest version of HMRC’s basic PAYE tools for RTI was released on 30 May. It includes the facility to submit an earlier year update (EYU) and to print other forms, including P45. An EYU is used after 19 April to correct any of the year-to-date totals submitted in the final full payment submission for the previous year.