Agent codes - Self Assessment and PAYE agent reference numbers

All agent registrations and changes to agent details relating to Self Assessment (SA) and PAYE are now dealt with by a centralised team based in Longbenton. Such registrations and changes should be made in writing and sent to:

HM Revenue & Customs
Central Agent Authorisation Team
Agent Maintainer
Benton Park View
Longbenton
Newcastle upon Tyne
NE98 1ZZ

The Central Agent Authorisation Team (Agent Maintainer) are now responsible for creating agent records within SA and PAYE and keeping them up to date. New agent codes will be notified by letter.

All agents acting for taxpayers within these systems must be allocated a national agent code. Once you have a code, it should be quoted on all 64-8 agent authorisation applications. Your agent code can also be used to register for appropriate online services.

Centralising this process will provide a single route for agent codes which will be dealt with by a specialist team. Centralisation will also help HM Revenue & Customs (HMRC) provide a more efficient, effective and consistent customer service.

There may be exceptional circumstances when you need to discuss issues around this process. HMRC are looking at the best way to do this and will provide an update in the near future.

Any written correspondence to change the details of agents who are based abroad (including Channel Islands and Isle of Man) should be sent to:

HMRC
CAR Residency
Abroad Agent Maintainer
St Johns House
Unit 353 Merton Road
Liverpool
L75 1BB

Two more toolkits have been developed by HM Revenue & Customs (HMRC) to make it easier for agents to get their clients’ tax returns right first time. These are:

• Private and personal expenditure (Income Tax Self Assessment)
• Capital Gains Tax for land and buildings

Each toolkit is packed with useful information including:

• a checklist to help agents address the key risks from HMRC’s point of view
• explanatory notes, which identify the underlying risks, how to mitigate those risks and a brief outline of the tax treatment
• cross references to the relevant guidance available online

The use of the toolkits is entirely voluntary but those who do choose to use them will benefit from:

• having access to the latest information on HMRC’s view of risk and common errors
• help for agents and their clients to get it right first time, reducing the likelihood of an HMRC compliance check
• assistance in enabling agents to focus their work to the areas of highest tax risk
• help to demonstrate reasonable care

The current pilot will run up to 31 January 2010 and will be evaluated during February/March. Once the HMRC have completed the evaluation they expect to make these toolkits available via their website.

HM Revenue & Customs (HMRC) announce their latest interest rates charged on late payments and paid on overpayments. These rate changes are made as advised in the announcement of 29 July 2009 on harmonising interest rates across all taxes.The rate changes announced today are:

• an increase to the repayment rate for quarterly instalment payments and early payments of Corporation Tax (CT) not due by instalments (for accounting periods ending on or after 1 July 1999) which take effect from 21 September 2009
• an increase in both the late payment and overpayment rates of interest for all other taxes and National Insurance contributions (NICs) which take effect from 29 September 2009

Details of rate changes

As part of its ongoing plans to improve customer service and efficiency HM Revenue & Customs (HMRC) is changing the way it processes PAYE records. Central to these plans is a major IT upgrade which will for the first time make all PAYE records available on one computer system.

Whilst they are upgrading their systems there will be a temporary period of planned service interruption from 12 June. This will continue until the new service is available to all trained staff and outstanding records are brought up to date.

How will customers be affected?

During this period some elements of their PAYE service will be temporarily interrupted. In addition the National Insurance Computer System will be unavailable for a short period.

At this time HMRC will still be able to provide general advice and guidance but will be unable to answer specific questions regarding individual National Insurance records or most recent PAYE changes.

There will be a corresponding temporary effect on the Department for Work and Pensions’ operations as well.

Guidance on the new tax appeals and review system has been published today by HM Revenue & Customs (HMRC).

As part of wider reform of the tribunals system, the tax appeals system changed on 1 April 2009. The guidance explains how the new appeals system works for all the different taxes and duties affected, across both direct and indirect tax.

All of the previous tax tribunals, including the General Commissioners, the Special Commissioners and the VAT & Duties Tribunals, are now combined within the Tax Chamber of a new First-tier Tribunal. A new Upper Tribunal will hear appeals from First-tier Tribunal decisions.

Before an appeal is considered by the new tribunal, customers have a new statutory right to a review of the issue by someone in HMRC who has not previously been involved in their case.

The guidance explains the various options open to customers, including what they need to do and when, and is available online at http://www.hmrc.gov.uk/dealingwith/appeals.htm.

New versions of form P45 were introduced from October 2008. These must be used from 6 April 2009 and any stocks of the old A5 versions of the form should be destroyed. The pre-printed A4 versions of the P45 are available now and should be used as soon as the employer has used up their existing stock of the A5 version.  They do not have to wait until April to start using the new version of the form. Supplies of these are available from the Employer Orderline.

The new versions of the form include the date of birth and gender fields. This will help the HMRC to match an employee’s information with their records when the forms are processed and reduce the number of queries the HMRC send to employers.

Employees may not recognise the new forms. Employers should reassure them that the form P45 has only changed in appearance and, apart from the new date of birth and gender fields which must be completed, the information requested and the procedures around it remain unchanged.

A P45 is the form employers complete when an employee stops working for them. It is a record of the pay and the tax that has been deducted so far in the tax year. A P45 has four parts - part 1, part 1A, part 2 and part 3. Employers send part 1 to HMRC and usually give the employee the other three.

To help taxpayers to file their Self Assessment tax returns online this financial year, HMRC are introducing a fast-track UTR process for those who were self-employed during 2007-08 but who have not yet registered with HM Revenue & Customs (HMRC) and received a UTR.

The fast-track has been be available from Monday 8 December 2008 and will be running till the end of January 2009. It can be only accessed using the Helpline for the Newly Self Employed Tel 0845 915 4515. The Helpline is open from 8.00 am to 8.00 pm, Monday to Friday and from 8.00 am to 4.00 pm, Saturday and Sunday.

If you use this service the HMRC will aim to post your UTR to you within five working days.

If you’re doing your tax return on paper this year, you should have made sure you sent it to HM Revenue & Customs (HMRC) by Friday, 31 October, or you could face a £100 penalty. From this year, there are now two separate Self Assessment deadlines - 31 October for paper returns and 31 January for those filed online.

If you were caught in the last-minute rush, one option is to switch to online filing. This has a number of advantages: online returns don’t have to be filed until 31 January, so you get three months longer to file; your tax is calculated automatically; you get an immediate online acknowledgement once you’ve filed; and it’s processed faster, so any money you’re owed is repaid more quickly.

However, if you are filing your tax return on paper, you’ll need to act now and get all the relevant information together, such as your P60 and savings records. Leave it too late, and you could end up with a £100 late-filing penalty.

If you need any help, or want to register for online filing, visit the HMRC website at http://www.hmrc.gov.uk/sa. Further help on completing your return is available from the Self Assessment helpline on 0845 9000 444 (open seven days a week from 8am to 8pm) and an HMRC video podcast featuring the new face of Self Assessment, Moira Stuart, available free from http://www.hmrc.gov.uk/podcasts.

Based on materials issued by HM Revenue & Customs Press Office

A new tax information exchange agreement between the governments of the United Kingdom and the Isle of Man was signed in Douglas, Isle of Man on 29 September 2008 by Michael Wills MP, Minister of State for Constitutional Renewal and Tony Brown, Chief Minister of the Isle of Man. The governments have also agreed to amend the provisions of the 1955 arrangement between the two governments for the avoidance of double taxation with respect to taxes on income, notably to add provisions on the taxation of income from pensions and a mutual agreement procedure.

The text will in due course be laid as Schedules to a draft Order in Council for consideration by the House of Commons. It will then also be available from the Stationery Office.Welcoming signature, the Financial Secretary to the Treasury, the Rt. Hon Jane Kennedy MP said: “This new tax information exchange agreement represents a significant step in our efforts to counter and prevent tax evasion and avoidance. I welcome the Government of the Isle of Man’s willingness to implement these high standards of transparency and exchange of information and acknowledge their commitment.”

Endorsing the sentiment, Michael Wills, Minister of State responsible for the Crown Dependencies said: “We all benefit from greater openness. I welcome this agreement as an example of effective co-operation between the two jurisdictions.”

The agreement will enter into force as soon as both governments have completed the legislative procedures needed to give it effect.

HMRC have issued guidance on how employers should deal with tax refunds following the increase in the personal tax allowance, which is due to take place in September.

Author: Sarah Laing Editor, TaxationWeb News, http://news.taxationweb.co.uk

Employers will be aware that the Chancellor recently announced that the basic personal allowance for 2008-09 is increasing by £600 from £5,435 to £6,035 and the basic rate limit is reducing from £36,000 to £34,800. The new tax codes and rate bands must be used from the first payday on or after 7 September 2008.

Since the increase in personal allowance is to be backdated to 6 April 2008, the PAYE tax code for many individuals will change in September, and many employees will in turn, have less tax to pay for the remainder of the tax year. In addition, some employees may be entitled to a refund of tax that they’ve already paid so far this year. The usual procedure is for the employer to fund any such refunds out of their other PAYE deductions by reducing the next payment due to HMRC.

However, if the employer’s next payment is insufficient to cover the employee refund(s) they need to make, then it is possible to claim funding from HMRC to cover the balance.