Tag: HMRC

HMRC: Time to get ready for Self Assessment

HM Revenue and Customs (HMRC) is reminding Self Assessment customers to check that they have the correct information in order to complete their tax return.

The deadline for 2020/21 tax returns is 31 October 2021 for those completed on paper forms and 31 January 2022 for online returns.

While the end of January is more than three months away, HMRC has already seen thousands of people filing their returns – more than 63,500 customers filed their tax return on 6 April, the first day of the tax year. Customers can file before the January deadline but still have until 31 January to pay.

Any customer who is new to Self Assessment must register via GOV.UK to receive their Unique Taxpayer Reference (UTR). Self-employed individuals must also register for Class 2 National Insurance. 

HMRC is encouraging customers to register early so that they can access guidance and be aware of what they need to do. This includes record keeping, knowing when the filing and payment deadlines are, and the potential for a first tax payment to include a payment on account.

This year, customers will also have to declare if they received any grants or payments from COVID-19 support schemes up to 5 April 2021 as these are taxable, including:

  • Self-Employment Income Support Scheme (SEISS)
  • Coronavirus Job Retention Scheme (CJRS)
  • Other COVID-19 grants and support payments such as self-isolation payments, local authority grants and those for the Eat Out to Help Out scheme

HMRC recognises that some customers may be worrying about paying their tax bill. Customers can access support to help pay any tax owed, and may be able to set up their own affordable monthly payment plan online by using HMRC’s self-serve Time to Pay facility. Customers should contact HMRC for help if they have concerns about paying their bill.

HMRC’s Myrtle Lloyd, Director General for Customer Services, said: “We want to help people get their tax returns right by making sure they are prepared and have everything they need before they start their Self Assessment.

“If anyone is worried about paying their tax bill, support is available – search ‘time to pay’ on GOV.UK.”

The fastest way to complete a tax return is online via a customer’s Personal Tax Account. They will need their UTR to access their tax return, as well as details of their income or earnings and other financial records.

Detailed information on what documents are needed for Self Assessment are on GOV.UK.

HMRC urges everyone to be alert if they are contacted out of the blue by someone asking for money or personal information. HMRC sees high numbers of fraudsters emailing, calling or texting people claiming to be from the department.

If in doubt, HMRC advises not to reply directly to anything suspicious, but to contact them straight away and to search GOV.UK for ‘HMRC scams’.

HMRC: Don’t Get Caught Out!

HMRC urges small motor businesses and car enthusiasts to be aware of post-Brexit changes and prepare themselves ahead of January 2022

HM Revenue and Customs (HMRC) is urging small businesses and enthusiasts in the automotive sector to be aware of post-Brexit rules when sending and receiving parts from Europe or travelling across Europe to attend events, to ensure they don’t get caught out.

New rules have been in place since January this year and while larger VAT-registered businesses will have familiarised themselves with the changes already, smaller businesses such as independent garages and specialist parts retailers may not be fully aware of the changes to import and export rules and how they apply.

Likewise, for motor hobbyists who may want to order a specialist part from the EU to restore a classic car, or wish to travel across Europe to a rally, many would not have had to navigate the changes until recently.

With rallies, classic car exhibitions and festivals in full swing, including the upcoming Classic Motor Show in Birmingham and then, further afield, the Auto e Moto D’Epoca in Italy, enthusiasts are being encouraged to check they understand the new requirements.

HMRC has produced guidance to help people identify the best way to navigate the changes.

There is also an Online Trader Tool  to ensure small businesses don’t get caught out by unexpected charges or unnecessary delays, as well as highlighting processes they can follow.

The guidance also provides information needed to ensure small businesses are prepared ahead of next January when full customs declarations and controls will be introduced.

If small businesses are also moving parts or equipment between Great Britain and Northern Ireland, they can register with the free Trader Support Service.

https://youtu.be/OZ6or0d6Cxk

Katherine Green and Sophie Dean, Directors General, Borders and Trade, HMRC, said: “With the lifting of travel restrictions and more events being held, we want auto enthusiasts to be able to continue to enjoy their cars, motorbikes and campervans like they always have.

“However, we know that many people would not have anticipated that the changes introduced at the beginning of the year would impact them, which is why we urge them to make sure they understand the new obligations by using the guidance available to them – on Gov.UK, from one of our YouTube videos or through our customer forums. Getting used to the new processes now will stand them in good stead ahead of January.”

HMRC: Working Tax Credit customers must report changes to working hours

HM Revenue and Customs (HMRC) is urging Working Tax Credit (WTC) customers to check if they need to update their working hours if these have reduced as a result of coronavirus.

During the pandemic, WTC customers have not needed to tell HMRC about temporary short-term reductions in their working hours as a result of coronavirus – for example if they were working fewer hours or were furloughed. It is one of several measures HMRC introduced to help those facing uncertainty around their hours.

If a WTC customer’s hours temporarily fell because of coronavirus, they have been treated as if they were working their normal hours.

Customers do not need to tell HMRC if they re-establish their normal working hours before 25 November 2021, but from then, they must do within the usual one-month window if they are not back to working their normal hours shown in their WTC claim.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “We introduced this measure last year to help support working families. It is vital that Working Tax Credit claimants who have benefitted from it update HMRC with their working hours if they have reduced, and they won’t return to their normal level before 25 November.

“Anyone who is no longer eligible for Working Tax Credit due to a change in their circumstances may be able to apply for other UK Government support, including Universal Credit.”

Customers should continue to tell HMRC about any permanent changes to their circumstances within one month – for example if they are made redundant, lose their job or their hours change permanently during this time.

This will ensure only those who are entitled to tax credits receive them, otherwise those ineligible or due a lower rate of payment will have to pay them back later.

Any changes can be easily reported online on GOV.UK, where customers can also check their current WTC claim details.

If customers receive tax credits they are not entitled to as a result of a change they will need to repay this money and may also have to pay a penalty if they do not let us know within one month. 

HMRC is also reminding claimants that Post Office card accounts are closing. From 30 November 2021 HMRC will stop making payments of Child Benefit, Guardians Allowance and tax credits into Post Office card accounts.

Child Benefit and tax credits customers who use Post Office card accounts to receive their payments will need to notify HMRC of their new bank, building society or credit union account details. HMRC is encouraging customers to act now so they do not miss any payments once their Post Office account closes. They can contact HMRC’s helplines (0345 300 3900 for tax credits or 0300 200 3100 for Child Benefit) or use their Personal Tax Account.

Christmas shoppers warned not to get caught out with extra charges

With just 100 days to go until Christmas (honestly – Ed.!), HMRC is urging shoppers to ensure they don’t get caught out by unexpected charges when buying from overseas traders.

Changes introduced on 1 January this year mean that some UK consumers buying presents for family and friends from EU businesses may now need to pay customs charges when their goods are delivered.

In the same way that consumers have previously had to pay charges when buying certain items from non-EU sellers, the same rules now also apply to goods being bought from the EU.

Shoppers buying stocking fillers or small items don’t need to worry about the changes. Only those buying excise goods – tobacco or alcohol – or ordering luxury items or presents in consignments worth more than £135, before discounts are applied, should be affected.

VAT will still apply on purchases made in consignments worth less than £135 but should be charged by the seller at the point of sale.

But anyone buying a more expensive product from abroad may need to pay import VAT, customs duty and/or excise duty when they receive their order. The amount due will depend on a range of factors, so to avoid surprises consumers should check with their seller to ensure they don’t end up over budget this holiday season.

To help shoppers, HMRC has produced diagrams to explain the various scenarios when buying from the EU. The government has also published easy to follow guidance for consumers to help everyone to understand the changes and when, why and how charges will need to be paid.

Katherine Green and Sophie Dean, Directors General, Borders and Trade, HMRC, said: “With 100 days until Christmas, we want to remind shoppers of the changes introduced since 1 January so that their present buying experience is as smooth as possible, and that online shoppers don’t inadvertently get caught out by any unexpected charges.”

Find out more about the new rules by checking on GOV.UK for a simple guide to the possible charges as well as essential information on how to dispute a charge, return unwanted goods and to get a refund on the charges paid.

Consumers can also find guidance on what may be required when sending or receiving items from friends and family living abroad.

HMRC warns students of scams

University students taking part-time jobs are at increased risk of falling victim to scams, HM Revenue and Customs (HMRC) is warning.

Higher numbers of students going to university this year means more young people may choose to take on part-time work. Being new to interacting with HMRC and unfamiliar with genuine contact from the department could make them vulnerable to scams.

In the past year almost 1 million people reported scams to HMRC.

Nearly half of all tax scams offer fake tax refunds, which HMRC does not offer by SMS or email. The criminals involved are usually trying to steal money or personal information to sell on to others. HMRC is a familiar brand, which scammers abuse to add credibility to their scams.

Links or files in emails or texts can also download dangerous software onto a computer or phone. This can then gather personal data or lock the recipient’s machine until they pay a ransom.

Between April and May this year, 18 to 24-year olds reported more than 5,000 phone scams to HMRC.

Mike Fell, Head of Cyber Security Operations at HMRC, said: “Most students won’t have paid tax before, and so could easily be duped by scam texts, emails or calls either offering a ‘refund’ or demanding unpaid tax.

“Students, who will have had little or no interaction with the tax system might be tricked into clicking on links in such emails or texts.

“Our advice is to be wary if you are contacted out of the blue by someone asking for money or personal information. We see high numbers of fraudsters contacting people claiming to be from HMRC. If in doubt, our advice is – do not reply directly to anything suspicious, but contact HMRC through GOV.UK straight away and search GOV.UK for ‘HMRC scams’.”

In the last year (September 2020 – August 2021) HMRC has: 

·         responded to 998,485referrals of suspicious contact from the public. Nearly 440,730 of these offered bogus tax rebates   

·         worked with the telecoms industry and Ofcom to remove 2,020 phone numbers being used to commit HMRC-related phone scams 

·         responded to 413,527 reports of phone scams in total, an increase of 92% on the previous year. In April last year we received reports of only 425 phone scams. In August 2021 this had risen to 3,269

·         reported 12,705 malicious web pages for takedown

·         detected 463 COVID-19-related financial scams since March 2020, most by text message 

·         asked Internet Service Providers to take down 443 COVID-19-related scam web pages.

By June this year, more than 680,000 students had applied to university, and over 900,000 held part time jobs during the 2020-21 academic year.

  1. HMRC’s advice is:

Stop: 

·         Take a moment to think before parting with your money or information. 

·         Don’t give out private information or reply to text messages, and don’t download attachments or click on links in texts or emails you weren’t expecting.

·         Do not trust caller ID on phones. Numbers can be spoofed.

Challenge: 

·         It’s ok to reject, refuse or ignore any requests – only criminals will try to rush or panic you.

·         Search ‘scams’ on GOV.UK for information on how to recognise genuine HMRC contact  and how to avoid and report scams. 

Protect:

·         Forward suspicious emails claiming to be from HMRC to phishing@hmrc.gov.uk and texts to 60599. Report scam phone calls on GOV.UK. 

·         Contact your bank immediately if you think you’ve fallen victim to a scam, and report it to Action Fraud (in Scotland, contact the police on 101).

  1. Data about student university applications can be found here.
  1. Data on part-time student employment can be found here.
  1. Follow the National Cyber Security Centre’s steps on keeping secure online at CyberAware.gov.uk.
  1. Follow HMRC’s Press Office on Twitter @HMRCpressoffice

Thousands of teenagers missing out on Child Trust Fund cash

HM Revenue and Customs (HMRC) is today urging young people to check if they have a hidden pot of gold – in the shape of a Child Trust Fund (CTF).  

It is now one year since the first account holders started turning 18 and around 55,000 CTFs mature every month. This means their owners can withdraw funds or transfer savings into an adult ISA. Hundreds of thousands of accounts have been claimed so far, but many have not. 

CTFs were set up for all children born between 1 September 2002 and 2 January 2011 with a live Child Benefit claim. 

Parents or guardians set up these accounts with Child Trust Fund Providers – usually banks, building societies or investment managers – using vouchers provided by the government. If an account was not opened by the child’s parent, HMRC set one up on the child’s behalf. 

Between 2002 and early 2011, about six million CTFs were opened by parents or guardians, with a further million set up by HMRC. 

Economic Secretary to the Treasury, John Glen, said: “It’s fantastic that so many young people have been able to access the money saved for them in Child Trust Funds but we want to make sure that nobody misses out on the chance to invest in their future. 

“If you’re unsure if you have an account or where it may be, it’s easy to get help from HMRC to track down your provider online.” 

Some young people may not know they have a CTF – or some parents or guardians may have forgotten who they set the account up with. To help them find their accounts, HMRC created a simple online tool.  

Any young people unsure about whether or not they have a CTF should first ask a parent or guardian if they remember setting one up. Once they know who their provider is, they should contact them directly – and either request to withdraw the money or transfer the funds into an adult ISA or other savings account. 

For those who cannot access the tool, HMRC will provide alternative, non-digital routes to finding a CTF provider upon request. HMRC will send details of the provider by post within three weeks of receiving their request.  

The accounts were set up to encourage positive financial habits and a saving culture among the young account holders. HMRC is working with the Money and Pension Service (MaPS) and the CTF providers to continue to provide financial education to the beneficiariescation to the beneficiaries.   

At 16 years, a child can choose to operate their CTF account or have their parent or guardian continue to look after it, but they cannot withdraw the funds. At 18 years of age, the CTF account matures and the child is able to withdraw money from the fund or move it to a different savings account.

HMRC can help with childcare costs in Scotland as children head back to school

Families in Scotland may be eligible for Tax-Free Childcare to help pay for breakfast and after school clubs as children go back to school.

Families are eligible to save money on their childcare and benefit from a government top-up worth up to £2,000 every year, or up to £4,000 a year if a child is disabled. In June 2021, about 17,530 families in Scotland benefited from using Tax-Free Childcare, but thousands are missing out on this opportunity.

Tax-Free Childcare is available to eligible parents or carers who have children aged up to 11, or 17 if their child is disabled. For every £8 a parent or carer deposits into their account, they will receive a £2 top-up, up to the value of £500 every three months, or £1,000 if their child is disabled. Parents and carers can check their eligibility and register for Tax-Free Childcare via GOV.UK.

HMRC recognises that families’ personal circumstances have changed since March 2020 as more parents and carers are preparing to return to their workplaces. The 20% top-up is paid into the child’s Tax-Free Childcare account and is ready to use almost instantly, meaning parents and carers can use the money towards the cost of childminders, breakfast and after school clubs, and approved play schemes.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “As your children head back to school this autumn, don’t miss out on the opportunity to receive your 20% top-up to help pay for their childcare.

“It is quick and easy to sign-up, just search ‘tax-free childcare’ on GOV.UK.”

Tax-Free Childcare is also available for pre-school aged children attending nurseries, childminders or other accredited childcare providers. Parents and carers, who are returning to work after parental leave, can apply for a Tax-Free Childcare account for that child before they need to start using it. Families can start depositing money 31 days before they return to work, maximising the potential government top-up saving.

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 reminder: Deadline looms for parents to update Child Benefit for 16 year olds

HM Revenue and Customs (HMRC) is reminding parents and carers they have until 31 August 2021 to confirm whether their teenagers are staying in full-time education or training beyond 16.

Last week, teenagers across the UK received their GSCE or Scottish National Certificate results and many are now considering their future. If they decide to continue their full-time education or training, parents or carers will be eligible to continue receiving Child Benefit payments for their child.

HMRC has sent reminder letters to families receiving Child Benefit for their child in the last year of school or home education. If their child is staying in education beyond age 16, parents or carers must notify HMRC by the end of August, or their Child Benefit will be stopped.

It is quick and easy to update Child Benefit records via GOV.UK. Alternatively, parents or carers can return the 297b form sent to them by HMRC.

Child Benefit is paid to eligible parents or carers who are responsible for a child under 16, or under 20 if they are in full-time non-advanced education or approved training.

Parents or carers receiving Child Benefit and who also have an income over £50,000 (or their partner does), may have to pay the High Income Child Benefit Charge via an annual Self Assessment tax return. 

Post Office card accounts are closing. From 30 November 2021, HMRC will stop making payments of Child Benefit, Guardians Allowance and tax credits, into Post Office card accounts. HMRC is reminding any Child Benefit and tax credits customers who use this account to receive their payments, that they will need to notify HMRC of their new bank, building society or credit union account details.

HMRC is encouraging customers to act now so they do not miss any payments once their Post Office account closes. They can contact HMRC’s helpline (0345 300 3900) or use their Personal Tax Account.

To find out how to open a bank account, visit Citizens Advice.

HMRC reveals absurd excuses for not paying Minimum Wage

While the vast majority of employers pay their employees at least the National Minimum Wage, HM Revenue and Customs (HMRC) has today released some of the most absurd excuses used for not paying the legal minimum.

Last year (2020 to 2021) HMRC helped more than 155,000 workers across the UK recover more than £16 million in pay which was due to them, and also issued more than £14 million in penalties.

Some of the most ridiculous excuses for flouting the law included:

  1. “She does not deserve the National Minimum Wage because she only makes the teas and sweeps the floors.”
  2. “The employee was not a good worker, so I did not think they deserved to be paid the National Minimum Wage.”
  3. “My accountant and I speak a different language – he does not understand me, and that is why he does not pay my workers the correct wages.”
  4. “My employee is still learning so they are not entitled to the National Minimum Wage.”
  5. “It is part of UK culture not to pay young workers for the first three months as they have to prove their ‘worth’ first.”
  6. “The National Minimum Wage does not apply to my business.”
  7. “I have got an agreement with my workers that I will not pay them the National Minimum Wage; they understand, and they even signed a contract to this effect.”
  8. “I thought it was okay to pay young workers below the National Minimum Wage as they are not British and therefore do not have the right to be paid it.”
  9. “My workers like to think of themselves as being self-employed and the National Minimum Wage does not apply to people who work for themselves.”
  10. “My workers are often just on standby when there are no customers in the shop; I only pay them for when they are actually serving someone.”

Steve Timewell, Director Individuals and Small Business Compliance, HMRC, said: “The majority of UK employers pay their workers at least the National Minimum Wage, but this list shows some of the excuses provided to our enforcement officers by less scrupulous businesses. Being underpaid is no joke for workers, so we always apply the law and take action. Workers cannot be asked or told to sign-away their rights.

“We are making sure that workers are being paid what they are entitled to and, as the economy reopens, reminding employers of the rules and the help that is available to them.

“HMRC reviews every complaint made about the minimum wage, so if you think you are being short-changed, or are a business that is unsure of the rules or needs help to get things right, get in touch and we will help you. But any employer deliberately or unapologetically underpaying their staff will face hefty fines and other enforcement action.”

The National Minimum Wage hourly rates are currently:

·         £8.91 – Age 23 or over (National Living Wage)

  • £8.36 – Age 21 to 22
  • £6.56 – Age 18 to 20
  • £4.62 – Age under 18
  • £4.30 – Apprentice.

HMRC is reminding workers to check the hourly rate of pay they are actually getting, and to also check any deductions or unpaid working time, as part of the Government’s commitment to build back fairer from the pandemic.

Anyone not being paid what they are entitled to can complain online at https://www.gov.uk/minimum-wage-complaint.

If they want to speak with someone, in confidence, they should phone the Acas Pay and Work Rights Helpline on 0300 123 1100, who can transfer the call to HMRC.

Employers can also contact the Acas Helpline for free help and advice or visit https://www.gov.uk/guidance/calculating-the-minimum-wage to find out more.