HMRC publishes Agent Update 87
19 August 2021
The latest Agent Update issue has been published by HMRC, and includes articles that discuss technical updates and reminders relating to Covid-19 and the Coronavirus Job Retention Scheme (CJRS), along with news about the VAT reverse charge, Making Tax Digital, the EU Settlement Scheme and the basis period reform consultation.
A couple of the information pieces are included below, but the Agent Update can be accessed in full here.
Late applications to the EU Settlement Scheme
Any individuals who have not yet applied to the EU Settlement Scheme, and need to, should apply for valid immigration status as soon as possible, as the deadline has now passed. A late application may be accepted if there are reasonable grounds.
Employers needing help to carry out a right to work check can contact the Employer helpline on 0300 790 6268.
Information on right to work checks is available online.
Basis period reform consultation
The government has published a consultation alongside draft legislation on its intentions to reform basis periods, which are used to allocate profits and losses to tax years.
The proposal will amend the basis period rules from a ‘current year basis’ to a ‘tax year basis’, and the transition will take place from 2022-23. The changes will come into effect from 2023-24. This would mean that a business’s profit or loss for a tax year would be the profit or loss occurring in the actual tax year, regardless of the accounting date.
The consultation explores the detailed technical design of basis period reform, assessing its benefits and its downsides. Additionally, it will look at how to implement the reform to mitigate against some of the challenges faced by the simplification.
The changes to basis periods are intended to simplify the tax system before the introduction of Making Tax Digital (MTD) for Income Tax.
Information provided in this news article may be subject to change. Please make note of the date of publication to ensure that you are viewing up to date information.