Agent Update 92 - January 2022

26 January 2022

Issue 92 of HMRC’s Agent Update has been released. Here are some of the important points made for payroll, If you need further detail please read the full release.

•    Coronavirus grants on company tax returns. A reminder that grants and payment made to support businesses during the pandemic are taxable. They therefore need to be reported on a company tax return. The Statutory Sick Pay (SSP) Rebate scheme re-introduced on 21 December 2021 will also need reporting in the relevant time periods when the time comes
•    Self-Assessment Penalty waiver. Filing penalties for Self-Assessment have been waived until 28 February 2022 and late payment penalties for those who pay in full or set up a payment plan by 1 April 2022. Interest will still be charged after the normal deadlines, so it can still be prudent to pay on time
•    Full Customs Controls are now in place
•    Consultation into the tax treatment of derivatives
•    Residential Property Developer Tax
•    VAT reverse Charge on construction and building services
•    Changes to claiming Construction Industry Scheme (CIS) deductions. To claim CIS deductions as a contractor on your Employer Payment Summary (EPS) businesses must be a Limited company. Non-limited Companies must complete this on the Self-Assessment Tax Return
•    Preparation for notification on uncertain tax treatments by large businesses. HMRC will release further guidance and provide webinars on the topic. Guidance is expected early in 2022, but it would be wise to assess if you operate any tax treatments that would be reportable. Pay As You Earn (PAYE) would be a tax scheme that would fall within the reporting requirements
•    Student Loan Thresholds and rates from April 2022. Confirmation of plan 1 and plan 4 rates. Plan 2 and postgraduate loan rates are still to be announced
•    Reminder to check PAYE Account for student loan and postgraduate start and stop notices
•    Student loan deductions should not be made against off-payroll workers. The worker should account for these obligations on their tax return
•    Making Tax Digital – changes to VAT Registration Services (VRS)
•    Signposting to Agent tools
•    Decommissioning of HMRC’s Online End of Year Expenses and Benefits service. From 6 April 2022 the interactive PDF used to submit P11D and P11D(b) forms will not be available. Instead, the PAYE online service should be used

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