Tag: HMRC

HMRC: Almost 66,500 file their Self Assessment on 6 April

Nearly 66,500 customers filed their 2021 to 2022 tax return on the first day of the new tax year – 6 April 2022 – HM Revenue and Customs (HMRC) has confirmed.

In recent years, there has been an increasing number of ‘early-bird’ customers filing their completed Self Assessment tax returns at the start of the new tax year – almost 30,000 more customers filed their returns on 6 April this year, compared to 2018 – and HMRC is encouraging others to change their filing habits and do it as soon as they can.

Customers have been able to file their 2021 to 2022 Self Assessment tax return since 6 April. And while many wait until nearer the annual filing deadline on 31 January, for some it is an opportunity to beat the last-minute rush and get it done as soon as they can, while they have the relevant information to hand.

Customers can file their tax return online. It is the quickest way to complete a Self Assessment return and it does not need to be finished in one go, as customers can access their return online anytime and save their progress until it is completed and ready to submit.

Customers who file their tax return early could benefit from:

·         receiving a tax refund on any overpaid tax from the 2021 to 2022 tax year sooner. Once a customer has filed their tax return, they can check if a repayment is due via their Personal Tax Account

·         managing their tax bill via direct debit. Customers can use the Budget Payment Plan service to set up weekly or monthly direct debit payments to spread the cost of any tax owed. The Self Assessment tax payment deadline for balancing payments remains unchanged – 31 January 2023

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “You don’t need to wait for the January rush to send us your tax return. More and more people are getting theirs out of the way early – search ‘Self Assessment’ on GOV.UK to get started.”

HMRC has updated the Self Assessment guide to help customers navigate through the tax return process. It includes helpful information on:

·         how to get help with your tax return

·         what to do when declaring furlough payments, Self-Employment Income Support Scheme grants or other COVID-19 support measures

·         what information you need before you can start completing your tax return

·         help with paying your Self Assessment tax bill

·         what to do if you have overpaid tax and are due a refund

Earnings and payments received during the pandemic will need to be reported on the tax return meaning customers must declare any grants or payments from the COVID-19 support schemes received between 6 April 2021 and  5 April 2022 as these are taxable, including: 

  • Self-Employment Income Support Scheme 
  • Coronavirus Job Retention Scheme 
  • other COVID-19 grants and support payments
  • any coronavirus payments incorrectly claimed

The Self Assessment deadline to file a return and pay any tax owed for the 2021 to 2022 tax year is 31 January 2023.

HMRC seizes 1 million cigarettes & 12,000 litres of alcohol from West Lothian storage unit

An investigation is underway after 1.1 million suspected illicit cigarettes and more than two dozen pallets of alcohol were seized by HM Revenue and Customs (HMRC).

Officers made the discovery inside a unit at an industrial park in Whitburn, West Lothian, on Wednesday (27 April 2022).

As well as the cigarettes, 28 pallets of alcohol were seized, including vodka, whisky and prosecco.

The goods found in the unit are believed to be worth an estimated £631,000 in lost duty and taxes.

A van and a forklift at the scene were also seized, plus £5,000 cash. No arrests have been made and enquiries are continuing.

Anyone with information about the illegal sale of cigarettes and alcohol should report it to HMRC online at gov.uk.

HMRC: 2.1 million annual tax credits packs to be issued

About 2.1 million tax credits customers will begin to receive their annual renewal packs this week from HM Revenue and Customs (HMRC).

The packs will be sent between 25 April and 27 May, and customers have until 31 July to check their details are correct and update HMRC if there has been a change in their circumstances.

Tax credits help working families with targeted financial support, so it is important that people do not miss out on money they are entitled to.

There are two types of renewal packs:

·         if it has a red line across the first page and says ‘reply now’, customers will need to confirm their circumstances to renew their tax credits

·         if it has a black line across the first page and says ‘check now’, customers will need to check their details are correct. If correct, customers do not need to do anything and their tax credits will be automatically renewed

About 630,000 customers will need to confirm their circumstances to renew their tax credits for the 2022 to 2023 tax year.

Customers can renew their tax credits for free via GOV.UK or the HMRC app.

Renewing online is quick and easy. Customers can log into GOV.UK to check the progress of their renewal, be reassured it is being processed and know when they will hear back from HMRC. Customers choosing to use the HMRC app on their smartphone can:

  • renew their tax credits
  • update changes to their claim
  • check their tax credits payments schedule, and
  • find out how much they have earned for the year

HMRC has released a video to explain how tax credits customers can use the HMRC app to view, manage and update their details.

If there is a change in a customer’s circumstances that could affect their tax credits claims, they must report the changes to HMRC. Circumstances that could affect tax credits payments include changes to:

·         living arrangements

·         childcare

·         working hours, or

·         income (increase or decrease)

Tax credits are ending and will be replaced by Universal Credit by the end of 2024. Many customers who move from tax credits to Universal Credit could be financially better off and can use an independent benefits calculator to check. If customers choose to apply sooner, it is important to get independent advice beforehand as they will not be able to go back to tax credits or any other benefits that Universal Credit replaces.

HMRC customers in Scotland encouraged to check out financial support available to them

Customers in Scotland are being encouraged to check online for the range of financial support available from HM Revenue and Customs (HMRC) to help with living costs.

HMRC has listed the support available in one place to ensure people are not missing out and can easily find out online if they are eligible and how to claim.

The new GOV.UK page pinpoints people to a one-stop shop of all the benefits, credits and allowances available to individuals and families, making it easier than ever for people to claim what they are entitled to.

This includes:

Child Benefit

Child Benefit can be claimed if someone is responsible for bringing up a child who is:

  • under 16
  • under 20 if they stay in approved education or training

Only one person can get Child Benefit for a child. It’s paid every 4 weeks and there’s no limit to how many children you can claim for.

Tax-Free Childcare

Working parents can get assistance of up to £500 every 3 months (up to £2,000 a year) for each of their children to help with the costs of childcare until the September after their 11th birthday. If a child is disabled, this goes up to £1,000 every 3 months until the September after their 16th birthday (up to £4,000 a year).

Marriage Allowance

Marriage Allowance allows individuals to transfer 10% (£1,260) of their personal tax allowance to a husband, wife or civil partner if they earn less than the personal tax allowance, which is usually £12,570.

Work-related expenses and uniform allowances

Tax relief can be claimed on money spent on things like work uniform and clothing, tools, subscriptions or business travel.

The GOV.UK page also includes guidance for those on a low income wanting to make the most of their savings and help for those struggling to pay their tax bill.

Myrtle Lloyd, Director General Customer Services Group, HMRC: “We understand these are very difficult times for many so it’s vitally important we continue to highlight the range of support available.

“We’d encourage those who think they may be eligible for support to take a look and claim what they’re entitled to – it could make an important difference to household budgets at a time when it’s needed the most.”

Additional online tools and guidance are available to help customers check if they are eligible for each service – as well as extra support to guide them through the application process.

HMRC names avoidance scheme promoters for first time

Tax avoidance schemes have been named for the first time by HM Revenue and Customs (HMRC) as users are warned they could face large tax bills.

HMRC has today advised anyone involved in Absolute Outsourcing’s or Purple Pay Limited’s Equity Participation Scheme to withdraw from them as soon as possible to prevent building up a large tax bill.

This is the first time HMRC has used new powers to name tax avoidance schemes and their promoters as part of a campaign to warn the public not to get caught up in tax avoidance.

Mary Aiston, Director of Counter Avoidance, HMRC, said: “These schemes are cynically marketed as clever ways to pay less tax. The truth is they rarely work in the way the promoters claim and it’s the users that end up with big tax bills.

“New legal powers allow us to name promoters and the schemes they peddle much faster, and this announcement is just the first step. But we need the public to be vigilant, and that’s why we’re also helping people identify, and steer clear, of these schemes through our Tax Avoidance – Don’t Get Caught Out campaign.”

The two named schemes are:

  • Absolute Outsourcing, of Foerster Chambers, Todd Street, Bury, Greater Manchester 
  • Equity Participation Scheme (EPS), promoted by Purple Pay Limited (PPL), of Gracechurch Street, London. 

Both schemes involve individuals agreeing an employment contract and working as a contractor. The schemes pay contractors the National Minimum Wage with the remainder of their wage paid through a loan to try to avoid National Insurance and Income Tax. 

By releasing the details of these schemes, HMRC is letting taxpayers know as early as possible so they can steer clear of them or exit them. HMRC will also regularly update the list by publishing the details of other tax avoidance schemes and their promoters. If a tax avoidance scheme is not shown in the list, this does not mean that the scheme works or is in any way approved by HMRC.

Naming avoidance promoters is one of a number of measures that HMRC is using to help people identify avoidance schemes as a part of the Tax Avoidance – Don’t Get Caught Out campaign. Other tools available to customers to help them steer clear of avoidance schemes include an interactive risk checker and payslip guidance. 

A video highlighting the experience of a critical care nurse who was recommended a tax avoidance scheme through her agency, has also been published by HMRC today. The video explains the risks of becoming involved in a tax avoidance scheme and the warning signs customers should look out for. 

If a customer believes that they are involved in a tax avoidance scheme, they should contact HMRC as quickly as possible by calling 03000 534 226.

Alternatively, if a customer has been encouraged to get into a tax avoidance scheme, has come into contact with someone selling tax avoidance schemes, or has become aware of a scheme, they can report it in confidence through HMRC’s online form. 

This is not a complete list of all tax avoidance schemes currently being marketed or a complete list of all promoters, enablers, and suppliers. There are other schemes, promoters, enablers, and suppliers that remain active, and HMRC will regularly update this list with these details.

Thousands of families can receive help towards Easter childcare costs

HM Revenue and Customs (HMRC) is reminding working parents in Scotland to not miss out on the opportunity to get up to £2,000 a year to pay for regulated childcare, including holiday clubs and other out-of-school activities, during the Easter holidays. 

Tax-Free Childcare provides thousands of eligible working families with up to £500 every three months (or £1,000 if their child is disabled) towards the cost of holiday clubs, before and after-school clubs, childminders and nurseries, and other approved childcare schemes.

For every £8 deposited into a Tax-Free Childcare online account, families will receive an additional £2 in government top-up, and it is available for children aged up to 11, or 17 if the child has a disability.

More than 19,800 working families used the scheme in December 2021, in Scotland. Overall, HMRC paid out more than £34 million in top-up payments, which was shared between nearly 328,000 families across the UK.

With recent research estimating that around 1.3 million families could be taking up this government support, parents and carers can check their eligibility and register for Tax-Free Childcare via GOV.UK. 

This scheme can help working families including the self-employed and is one of many ways the UK Government is supporting households to reduce their costs and keep more of what they earn to help pay for other bills. 

Helen Whately, HM Treasury’s Exchequer Secretary to the Treasury, said: “There are lots of brilliant holiday clubs and childcare providers to help working parents during the Easter holidays, and Tax-Free Childcare is a great offer that can help cut the childcare bills. 

“I urge families across the UK to take advantage of this support and put extra pounds in their pocket – sign up now and save on your childcare costs.” 

By depositing money into their accounts, families can benefit from the 20% top-up and use the money to pay for childcare costs when they need it. Accounts can be opened at any time of the year and can be used straight away.

For example, if parents and carers have school-aged children and use holiday clubs during school holidays, they could deposit money into their accounts throughout the year. This means they could spread the cost of childcare while also benefitting from the 20% government top-up. Any unused money that is deposited can be simply withdrawn at any time.

Tax-Free Childcare is also available for pre-school aged children attending nurseries, childminders, or other childcare providers. Families with younger children will often have higher childcare costs than families with older children, so the tax-free savings can really make a difference.

Childcare providers can also sign up for a childcare provider account via GOV.UK to receive payments from parents and carers via the scheme.

HMRC: Less than a week to go for Making Tax Digital

Businesses have less than a week to prepare for Making Tax Digital (MTD) for Value Added Tax (VAT) becoming mandatory for VAT-registered businesses on 1 April, HM Revenue and Customs (HMRC) said today.

MTD helps taxpayers get their tax returns right by reducing common mistakes as well as saving time managing their tax affairs and is a key part of the overall digitalisation of UK tax.

Evidence shows MTD is succeeding in its central aims of reducing errors, while also making it faster to prepare and submit returns, and boosting productivity for businesses.

New research, conducted by HMRC and peer reviewed by independent academics, shows MTD is likely to have generated increased revenue through reducing errors in both 2019 and 2020.

Nearly 1.6 million taxpayers had joined MTD for VAT as of December 2021 with more than 11 million returns successfully submitted. Around a third of VAT-registered businesses with taxable turnover below £85,000 have voluntarily signed up to MTD for VAT ahead of April 2022, and thousands more are signing up each week.

VAT-registered businesses that have not yet signed up to MTD for VAT should do so now. All VAT-registered businesses must use MTD for VAT for their first VAT return starting on or after 1 April 2022.

Businesses should use the time left to choose the software that is right for them, whether that is one of the simple free options available, or a more advanced product for those with more complex affairs.

Lucy Frazer, HM Treasury’s Financial Secretary to the Treasury, said: “Businesses using MTD are saving time on their tax affairs, streamlining their processes and boosting their productivity as a result.

“Our first move towards a modern, digital tax service – MTD makes it easier for businesses to get their tax right first time.”

There is a range of support and information available for those that need it – including accessible online content such as YouTube videos, GOV.UK help pages and HMRC’s Extra Support service.

Agents can sign up on behalf of a business, although businesses remain responsible for meeting their VAT obligations. Those who do not join may be charged a penalty for failure to do so.

There are a range of compatible software products available for MTD for VAT, allowing businesses to choose which tools they use to run their business and tax affairs. A list of software compatible with MTD for VAT, including free and low-cost options, can be found on GOV.UK.

HMRC understands that some businesses will find it easier to comply with MTD than others. For those who need more help and support on signing up for MTD, HMRC is running a series of webinars.

Some VAT-registered businesses may be eligible for an exemption from MTD, if it is not reasonable or practicable for them to use digital tools for their tax. If a business has previously been granted an exemption for VAT online filing, this will carry over to MTD VAT requirements. Go to GOV.UK for more information on whether an exemption may apply.

Example MTD case studies from businesses who are currently benefitting from MTD for VAT can be found on YouTube.

https://youtu.be/OyWJz0fSDE4?list=PL8EcnheDt1zi1ipk1qexrwdAU5O6LS84a

To sign up to MTD VAT, businesses, or an agent on a businesses’ behalf, need to:

Step 1: Visit GOV.UK and choose MTD-compatible software
Step 2: Keep digital records starting from 1 April 2022 or the beginning of their VAT period
Step 3: Sign up and submit their VAT Return through MTD

Post Office card accounts: switch now, says HMRC

HM Revenue and Customs (HMRC) is warning Post Office card account holders, who receive HMRC-related payments, that time is running out – with just two weeks left to switch their accounts.

About 6,800 Post Office card account customers, who receive tax credits, Child Benefit or Guardian’s Allowance payments, need to transfer their account by 5 April 2022 to continue receiving their money without interruption.

HMRC is stopping making payments to Post Office card accounts from 6 April. Customers, who have not done so already, must notify HMRC of an alternative account to have their payments paid into. It will not be possible to pay tax credits or Child Benefit until a valid account is provided.

These could be vital funds for families and individuals, due to the rise in the cost of living, and HMRC wants to make sure no-one loses out.

Myrtle Lloyd, HMRC’s Director General for Customer Services said: “Time is running out and we want to make sure that no customer misses out on the benefit payments they are entitled to. If you still need to switch your Post Office card account, contact HMRC to update your bank account details.”

HMRC has been writing to affected customers since October 2019 to notify them that their Post Office card accounts will be closing and urging them to take action. More than 143,000 customers have already switched their accounts and provided HMRC with updated details.

Customers can choose to receive their benefit payments to a bank, building society or credit union account. If they already have an alternative account, they can contact HMRC now to update their details.

Child Benefit and Guardian’s Allowance customers can use their Personal Tax Account to provide revised account details, change their bank account details via GOV.UK or by contacting the Child Benefit helpline on 0300 200 3100.

Tax credits customers can change their bank account details by contacting the tax credits helpline on 0345 300 3900. If customers cannot open a bank account, they should contact HMRC.

If a customer misses the 5 April deadline, their payments will be paused until the customer notifies HMRC of their new account details.

The Money Helper website, provided by the Money Advice and Pensions Service, offers information and advice about how to choose the right current account and how to open an account.

Scammers targeting Self Assessment customers, HMRC warns

HM Revenue and Customs (HMRC) is warning Self Assessment customers to be on their guard following the Self Assessment deadline after more than 570,000 scams were reported to HMRC in the last year.

At this time of year, Self Assessment customers are at increased risk of falling victim to scams, even if they don’t mention Self Assessment. They can be taken in by scam texts, emails or calls either offering a ‘refund’ or demanding unpaid tax, thinking that they are genuine HMRC communications referring to their Self Assessment return. In the 12 months to January 2022, nearly 220,000 scams reported to HMRC offered bogus tax rebates.

Criminals target unsuspecting Self Assessment customers to try and steal money or personal information. They use phone calls, texts and emails to try and dupe citizens, and often mimic government messages to make them appear authentic. In January 2022, phone scams rose to 3,995 compared to 425 reported in April 2020.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “If someone contacts you saying they’re from HMRC, wanting you to transfer money or give personal information, be on your guard. 

“Never let yourself be rushed, and if you’re in any doubt then check our ‘HMRC scams’ advice on GOV.UK.”

HMRC gave customers an extra month to submit a completed tax return and if customers filed by 28 February 2022, they would avoid a late filing penalty. More than 11.3 million customers filed their Self Assessment tax return by 28 February, with more than 1 million of those taking advantage of the extra time by filing in February.

Customers have until 1 April to pay their outstanding tax bill or set up a Time to Pay arrangement to avoid receiving a late payment penalty. Interest has been applied to all outstanding balances since 1 February.

Customers can now make Self Assessment payments quickly and securely through the HMRC app. Customers choosing to make secure Self Assessment payments through the HMRC app can either connect to their bank to make their payments or pay by Direct Debit, personal debit card or corporate/commercial credit/debit card. 

A full list of the payment methods customers can use to pay their Self Assessment tax bill is available on GOV.UK.

Customers can report suspicious phone calls using a form on GOV.UK. Customers can also forward suspicious emails claiming to be from HMRC to phishing@hmrc.gov.uk and texts to 60599. 

HMRC has a dedicated team working on cyber and phone crimes. They use innovative technologies to prevent misleading and malicious communications from ever reaching the customer.

Since 2017, these technical controls have prevented 500 million emails from reaching HMRC’s customers. More recently, new controls have prevented 90% of the most convincing SMS messages from reaching the public and controls have been applied to prevent spoofing of most HMRC helpline numbers.

HMRC is also reminding Self Assessment customers to double check websites and online forms before using them to complete their 2020/21 tax return.

People can be taken in by misleading websites designed to make them pay for help in submitting tax returns or charging to connect them to HMRC phone lines.

Customers who are in any doubt about whether a website is genuine should visit GOV.UK for more information about Self Assessment and use the free signposted tax return forms.

HMRC to help Ukraine aid exports

Moving aid and donations to the people of Ukraine will be made easier thanks to a customs easement, the UK Government has announced.

The simplification of customs processes will apply to goods intended to support those affected by the humanitarian crisis in Ukraine which are exported from GB. Provided the goods are not exported to, or through, Russia or Belarus, then these simplified processes apply to qualifying goods regardless of the destination to allow maximum flexibility to get aid to where the need is greatest.

The Government still recommends that organisations and people who would like to help donate cash through trusted charities and aid organisations, rather than donating goods. Cash can be transferred quickly to areas where it’s needed and individuals and aid organisations can use it to buy what’s most needed.

However, businesses, charities and community organisations sending aid from GB ports will be able to make a customs declaration by speaking to customs officers or simply by the act of driving through a port.

They will no longer need to complete and submit electronic customs declarations to HMRC before exporting these goods, and smaller movements will not need to use the Goods Vehicle Movement Service to pass through ports where it is in operation.  

The easement will also remove other customs formalities, such as needing to notify HMRC when the goods have been exported.

The Rt Hon Lucy Frazer QC MP, Financial Secretary to the Treasury, said: “People and businesses across the UK have already responded with immense generosity, donating millions of pounds to support those forced to flee their homes as a result of the war in Ukraine.

“Government advice remains that the best way to help the Ukrainian people is to donate money through the Disasters Emergency Committee or other trusted charities.

“However, we appreciate that people and businesses may still wish to donate aid directly to the region, so this new customs easement will ensure that humanitarian aid is fast -tracked from GB to help those most affected.”

The easement, which excludes all controlled goods and dual use goods, will be in place for a limited time, which will be announced in due course.