Please note that this blog is no longer being updated.
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1. What has changed for P87 applications?
From 6 May new secondary legislation came into force allowing HMRC to specify the format of P87 applications. HMRC has updated the form they want customers to use on GOV.UK and from 7 May 2022 all P87 applications must be made on this form.
2. Why have you introduced this change?
We receive a wide variety of employment expense claim forms from repayment agents. We are bringing in the new P87 form so we have a consistent standard coming into HMRC. This will allow us to process these applications more efficiently and will allow us to start automating the processing of P87s. For automation to work, all forms need to be the same so our systems can scan them and identify the necessary information. This will help us to pick up and process any repayments and coding adjustments more quickly.
3. What will happen to applications that have been received by HMRC before 7 May 2022 and still not processed?
Any applications received by HMRC on or before 6 May that are not in the prescribed P87 format will continue to be processed.
4. What will happen if I send in applications in a non-prescribed format on or after 7 May?
Applications received by HMRC on or after 7 May 2022 must be on the prescribed P87 form. Applications received in a non-prescribed form will not be processed.
The repayment agent will receive a letter explaining this and advising that the prescribed P87 form must be used. They will receive only one letter, even if multiple or later applications are made using a non-prescribed format. The applications will not be returned to the repayment agent.
5. What will happen if I send in applications on a prescribed P87 form but I do not provide all the requested information?
Please ensure all relevant boxes on the form are completed and that the form is signed by the customer making the claim. If there is information missing we will try to source the information internally or contact the repayment agent for more information. Missing information is likely to result in a delay in processing the claim.
We will continue to monitor the standard of applications and will work with those repayment agents who submit high levels of incomplete applications, to understand any difficulties in providing the complete information and highlight HMRC expectations.
6. What happens if I need to submit additional information as part of my application?
You should still use the prescribed P87 form to make the application and include the additional information/evidence with the form when sending it to HMRC.
You can continue to submit assignments, 64-8s etc as part of the application. But to ensure payments are made quickly to the repayment agent through future automation, it is quicker to complete the nominee information on the P87 form.
7. What will happen to the assignment if I submit it at the same time as an application in a non-prescribed format?
Where we have determined that a valid assignment has been received, we will process the assignment but not the application. You will receive a letter explaining this and advising that the prescribed P87 form must be used.
8. What should I do if I have questions about completing the prescribed P87 form?
You should refer to ‘Guidance notes for form P87’ on GOV.UK.
9. How should the prescribed P87 forms be printed?
To submit paper P87 applications to HMRC, forms must be printed and all 8 pages of the form need to be submitted.
Forms can be printed in black and white or colour and can be printed single or double-sided.
10. Can I replicate the prescribed P87 for my internal business process?
You can replicate the HMRC-produced form so that it can be populated using your own software. But for any replica to be deemed a prescribed P87, it must be set out exactly as the prescribed P87 form on GOV.UK, ensuring the position, size and behaviour of each data entry field is accurately replicated.
If essential, a minor addition by the repayment agent to the HMRC-produced P87 form (e.g. a small logo, company name or barcode) which does not affect the basic format, size, layout or general integrity of the data fields will be accepted as being a prescribed form. If you are in any doubt you should contact HMRC.
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The temporary reintroduction of bulk agent appeals for 2020 to 2021 Income Tax Self Assessment (ITSA) late filing penalties, will come to an end on 6 May 2022 as planned.
This is in line with the appeal deadline for these penalties and is as previously publicised.
From 7 May onwards, appeals should be made by following the standard appeals process which is available on GOV.UK.
]]>Welcome to today's blog promoting the publication of Agent Update: issue 95.
In the Technical Updates and Reminders section we continue to bring you important COVID-19 updates such as, reminder to declare coronavirus grants on Company tax returns, authorisation to discuss Self Employment Income Support Scheme (SEISS) grants on behalf of your clients and Enterprise Management Initiative – COVID-19 easement ending.
Other topics included are, change in the CT600 supplementary page CT600L from 1 April 2022, Freeports Employer National Insurance contributions relief, Student and Postgraduate Loans: Thresholds and rates from 6 April 2022, Capital Gains Tax on UK Property Account and claiming Employment Allowance from April 2022.
In the Making Tax Digital section we have an article on latest updates for Making Tax Digital.
Some of the highlights in the HMRC Agent Services section include National Insurance Holiday for Employers of Veterans: Claims process now live, Residence, Domicile and Remittance Basis Manual (RDRM) updates and review on How HMRC upholds its Standard for agents.
The Agent Forum and Engagement section has updates on the HMRC online Tax Agent Forum with useful information on how to resolve common problems encountered by the agent community.
We hope you find this edition informative and don’t forget the next Agent Update is scheduled for May 2022.
Did you know that you can receive email alerts telling you about the latest publication of Agent Update?
]]>You can find out the answer to this question in our recently published in-depth review on HMRC’s powers to uphold its Standard for Agents.
The review sets out our approach and the statutory powers available to us when dealing with breaches of the Standard. It brings together contributions and examples of work from across HMRC and it’s the first time this information has been published in one place.
It highlights the wide-ranging activity we use to correct poor agent behaviour, which includes providing education support where errors are identified, removal or suspension of access to online services, penalties, and public interest disclosures.
HMRC’s standard for agents, first published in 2016, applies to all paid agents, regardless of whether they are a member of a professional body or not. The review helpfully maps the standards against powers and is a useful reminder of what is expected from agents, as well as what you can expect from us.
Important next steps in the review are to:
· publish HMRC’s approach to tax agents in a single policy statement, including how to report breaches of the agent standard
· update and publicise the agent standard
· continue to ensure consistency across HMRC in its overall approach to agents
· focus HMRC’s efforts to uphold its agent standard on the worst agent behaviours.
The review is linked to our work on Raising Standards in the Tax Advice Market, which is part of our Tax Administration Strategy. It recognises the important service good tax advisers offer their clients, but also acknowledges that more needs to be done to tackle the problem of technically incompetent, unprofessional and exploitative tax advisers – as well as those deliberately setting out to cause harm.
And there is more to come on our work on Raising Standards in the Tax Market. We will go even further this year when we launch 2 consultations. One will be on options to improve the wider regulatory framework around standards and tax advice, and the other will be on tackling the high cost to taxpayers of claiming tax refunds.
]]>We may not be able to talk to you about your clients’ SEISS grants unless we receive additional consent from them. This is because our existing process – the 64-8 agent authorisation – was not designed to cover the support provided in response to coronavirus, such as SEISS grants, so the usual taxpayer confidentiality rules apply. We require this additional authorisation to safeguard our customer information. How you can give us your consent is explained in more detail below.
Before a Self Assessment return is filed:
• SEISS grant information cannot be disclosed to an agent without specific consent from their client.
• written consent is our preferred option, although we can record consent if your client calls us on 0300 200 3310.
• written consent should include your client’s name, address, tax reference number (for example their Unique Taxpayer Reference (UTR)) and signature in addition to the name and address of the agent they wish to authorise.
This should be posted to: National Insurance contributions and Employers Office, HM Revenue and Customs, BX9 1AN.
After a Self Assessment return is filed:
• as an authorised agent, we can talk to you about anything that your client entered on their return.
• we can discuss any boxes on a return that have no entry (for example where we know a SEISS grant was paid but the return does not include this).
• where we have corrected a SEISS grant amount following a mismatch between the customer’s SEISS figure and the figure we hold, we can discuss this with you too.
If you plan to contact us regarding your client’s SEISS grants, please speak to them and make sure relevant consent is in place where necessary and allow time for required authorisation to be processed by us.
We appreciate this is additional workload for agents, your clients and HMRC, but ensuring the security of customer information remains a priority for us.
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From 31 March 2022, new clients will need to use a new form 64-8 to give authorisation for you to deal directly with us on their behalf.
Existing clients do not need to re-authorise their current relationship.
How to access the new form
You’ll be able to download the new agent authorisation form online from 31 March 2022. To do this, go to GOV.UK and search ‘Tax agents and advisers: authorising your agent (64-8)’.
Changes to the 64-8 form
The new version of the agent authorisation form is designed to give our customers a better experience and improve data protection.
It allows customers to state which tax regime they want you to access. The form also includes new guidance for customers on how to fill in the form correctly and what data they are agreeing to share with you as their agent.
We’ll phase out the current 64-8 form from Autumn 2022
We’ll write to you closer to the time with a specific date.
After this date, we’ll only accept the new version of the 64-8 agent authorisation form and reject any authorisation requests sent using older versions of the form.
The Chancellor made his annual Spring Statement speech today where he set out the Government’s tax plan to support the UK economy, businesses and families in both the short and the medium term.
Key measures the Chancellor announced as part of the plan include:
The full detail on all the measures, some of which are subject to parliamentary approval, can be found on GOV.UK.
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Welcome to today's blog promoting the publication of Agent Update: issue 94.
In the Technical Updates and Reminders section we continue to bring you important COVID-19 updates such as final claims for the Statutory Sick Pay Rebate Scheme, overpaid Self-Employment Income Support Scheme (SEISS) grants, a reminder to declare Coronavirus grants on Company tax returns and Extended Loss Carry Back.
Other topics included are changes to the Construction Industry Scheme (CIS), new tax regime for Qualifying Asset Holding Companies, Statutory Reviews, Corporate Interest Restriction – Mandation of electronic filing and Self Assessment tax returns for 2021-22 tax year.
In the Making Tax Digital section we have an updated article on Making Tax Digital for VAT.
Some of the highlights in the HMRC Agent Services section include Agent Talking Points, Alternative Dispute Resolution, Anti Money Laundering (AML) supervision detailed guidance, Creative Industry Tax Reliefs: New online tool to support claims and reporting Expenses and Benefits for tax year ending 5 April 2022.
The Agent Forum and Engagement section has updates on the HMRC online Tax Agent Forum with useful information on how to resolve common problems encountered by the agent community.
We hope you find this edition informative and don’t forget the next Agent Update is scheduled for April 2022.
Did you know that you can receive email alerts telling you about the latest publication of Agent Update?
]]>Due to the impact of coronavirus on individuals and businesses around the country, HMRC has not issued a Late Filing Penalty for anyone who has been unable to file their 2020-21 Self Assessment (SA) return by 31 January 2022 providing they did so by 28 February 2022.
HMRC recognise that due to the ongoing pandemic some customers and agents will still have difficulty meeting their filing obligations and have advised that coronavirus may be accepted as a reasonable excuse for any appeals made against a 2020-21 Late Filing Penalty for Self Assessment customers.
To make things easier for agents representing these individuals and businesses, we are introducing a route for Agents to submit a bulk appeal for Late Filing Penalties, on behalf of their clients where coronavirus is being claimed as a reasonable excuse for late filing of the 2020-21 SA return. This facility is not available for 2020-21 SA Late Payment Penalties, nor any other penalties.
The bulk appeals facility will be available for appeals made between 9 March and 6 May 2022.
These appeals must be recorded using the template on GOV.UK and sent to the following address: Bulk Agent Appeals, HM Revenue and Customs, BX9 1ZH.
The template must only be used for 25 or less clients. If you need to submit an appeal on behalf of more than 25 clients, you should complete a second template.
Each envelope you return using the above address should contain no more than one template of 25 or fewer clients. If you complete multiple templates, these should be sent in separate envelopes (max 1 template per envelope).
All fields on the template should be completed – without this, we won’t process the appeal for that client.
This template must only be used where the return was not filed by 28 February 2022 due to coronavirus. If the penalty is subject to appeal on other grounds, please use existing channels (see below).
Appeals can still be completed via the current method; this new route is for Bulk Appeals only. Appeals on behalf of one client should be filed using either the SA370 or filed online.
Please note that any appeals for a High Net Worth Unit case should be submitted via the normal route and should not be included on the attached template.
This service is only for a coronavirus related Reasonable Excuse. HMRC reserve the right to carry out random checks to ensure the validity of the data or to seek further clarification as to the exact nature of the coronavirus related Reasonable Excuse.
This service will be available for appeals made on or before 6 May 2022.
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