HLAS

This service was created to enable paperless filing in response to the coronavirus (COVID-19) outbreak. It is quicker to upload your documents than to send them by post. You can use this service to file certain documents online that would usually be sent to CH in a paper format. In this service, you can upload certain documents for: share capital registrar's powers change of constitution insolvency (registered insolvency practitioners only) Read the guidance to find out how to upload a document, including which documents you can file. There is separate guidance for uploading insolvency documents. A same day service is now available [...]

The claims service for the fifth SEISS grant will open from late July. In the meantime, here is the latest SEISS update from HMRC. Personal claim dates Shortly HMRC will be contacting every customer who may be eligible for the fifth grant, to tell them their personal claim date. Customers can claim from this date up until the claims service closes on 30‌‌ ‌September‌‌ ‌2021. Claims made before the personal claim date will not be processed. This is to ensure the system is fast and easy to use for everyone on their given date, and that telephone support continues to [...]

Following the deadline for applications to the EU Settlement Scheme, the process for completing right-to-work checks on EU, EEA, and Swiss citizens has now changed. Employers can no longer accept EU passports or ID cards as valid proof of right-to-work, with the exception of Irish citizens. Instead, you need to check a job applicant’s right to work online using a share code and their date of birth. You do not need to retrospectively check the status of any EU, EEA, or Swiss citizens you employed before 1 July 2021. You can find out more information on these changes, including what to do [...]

Draft legislation has been published with the intention of increasing normal minimum pension age (NMPA), which is the minimum age at which most pension savers can access their pensions without incurring an unauthorised payments tax charge unless they are retiring due to ill-health, from age 55 to 57 in 2028. There follows a consultation on the implementation of the increase and a proposed framework of protections for pension savers who already have a right to take their pension at a pre-existing pension age. This consultation was launched on 11 February 2021 and closed on 22 April 2021. Currently registered pension [...]

On 20 July 2021, the Treasury and HMRC issued a number of policy papers and consultations flagging up possible future tax changes. Draft legislation for inclusion in the next Finance Bill has also been issued alongside some of the measures. Among the documents these are probably the most significant: Abolition of basis periods for income tax A draft clause and Schedule propose to abolish basis periods for income taxed as trading profits for the tax year 2023/24 and subsequent years and provide transitional rules for the tax year 2022/23. These measures were announced as a “simplification” measure and will facilitate [...]

We are awaiting further information on MTD from HMRC this summer but one significant announcement on 20 July was draft legislation to abolish basis periods for unincorporated businesses for the 2023/24 tax year to simplify MTD reporting. That change would apply to sole traders, partnerships, as well as trusts with trading and property rental income. There would also be complicated transitional rules for 2022/23 which could result in a big tax bill that year for some traders. The Treasury are also consulting on changing the tax year itself from the archaic 5 April year end to 31 March or even 31 [...]

The precise details of what needs to be reported each quarter have yet to be finalised, but the categories of income and expenditure are likely to be the same as currently reported for self-assessment. The accounting software will need to record income and expenditure into the following main categories: Turnover/gross rents Costs of goods sold Materials Wages and salaries of employees Sub-contractor costs Rent, rates, power, insurance Repairs and renewals Professional fees Telephone and other office costs Interest on bank and other loans Motor and travel expenses   It is unclear at this stage how loans to finance residential lettings [...]

Since 6 April 2021 large and medium-sized organisations have had to determine whether or not a worker supplying their services via their own personal service company would be treated as an employee if directly engaged. HMRC suggest organisations use their Check Employment Status for Tax (CEST) tool on their website to check the worker’s status, although that is not obligatory. HMRC have recently confirmed that they will be bound by the result of the software provided the information is accurate and it is used in accordance with their guidance. However, they will not stand by results achieved through contrived arrangements [...]

The fifth (and final) SEISS grant will be available for the self-employed to claim towards the end of July. HMRC will contact those traders that may be eligible with their claim date. The eligibility criteria remain broadly the same as the fourth grant. Self-employed profits in 2019/20 must not exceed £50,000 and must be more than 50% of your total income. If that test is not met, then the same £50,000 and 50% tests are applied to average profits and total income over the four fiscal years to 2019/20. Self-employed traders need not have claimed grants under the previous scheme [...]

Where a company makes a trading loss of no more than £200,000 in an accounting period it is now possible to claim relief for that loss even though the corporation tax return CT600 has not been submitted. This will enable the company to carry back the loss to earlier years and obtain a repayment of tax previously paid. HMRC will however need evidence of the loss to support the claim, in particular a PDF of the company’s management accounts for the period. In determining whether the loss is no more than £200,000 the company is required to claim all available [...]