HMRC Agent Update: issue 106

13 April 2023

HM Revenue and Customs (HMRC) published its issue 106 Agent Update for tax agents and advisers. The update provides information in the areas of voluntary National Insurance contributions (NICs), reporting expenses and benefits and employer pay arrangements.

Some of the key highlights are:

Tax

  • access the Spring ‘Budget Red Book’ 2023 and the Overview of Taxation Legislation and Rates (OOTLAR)

  • the voluntary National Insurance (NI) deadline has been extended to 31 July 2023. The original deadline was 5 April 2023

  • changes to the Research and Development (R&D) tax relief reform, from 1 April 2023

  • end of year reporting for employers - from 6 April 2023 all P11D and P11D(b) forms must be reported online. This was also published in the February 2023 Employer Bulletin and you can read more here

  • the official rate of interest increased from 2% to 2.25% on 6 April 2023 (used to calculate the income tax charge on the benefit of employment related loans and the taxable benefit of some employment related living accommodation

  • some customers who have used tax avoidance schemes have received accelerated payment notices and associated late payment penalties. Failure to pay an accelerated payment notice by the due date can result in late-payment penalties being charged

  • budget legislation in place as of 15 March 2023, to render void assignments of income tax repayments. This factors in HMRC’s consultation on ‘Raising standards in tax advice’. Agents should use nomination forms where a repayment is to be made to them rather than the taxpayer

HMRC agent services

  • clients wanting to set up a Direct Debit (DD) for employer PAYE, needs to be done early to ensure the payment is made on 22nd of every month

  • DD payments are always collected after the 22nd of a month, meaning that clients may be advised that payments are late. This is not a penalty but an advisory notice from HMRC

  • clients struggling to pay may be able to set up a time to pay arrangement online if they have PAYE arrears. Agents cannot set up either a DD or an online time to pay arrangement on behalf of clients

Other areas also covered in the issue are:

Keep an eye out for our reporting on the next edition due on 19 April 2023.


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