hoped that modern digital systems and real-time information will assist people in getting their tax correct the first time, making it much more difficult for people to avoid paying the tax that they owe.
Next steps
As the threat of the virus diminishes, the country will eventually return to a steady state, which many are coining the ‘new normal’. HMRC has confirmed that it will follow some key principles to ensure that it continues to support both individuals and businesses in the UK. They are as follows: • To collect the tax due in a manner that recognises the needs and challenges faced by both businesses and individuals • To communicate openly and transparently, to provide people with as much certainty as possible • To remain professional, fair and even-handed in interactions with taxpayers • Where temporary administrative arrangements have been introduced, which have resulted in an enhanced customer experience or created improvements, HMRC will try to build on those changes to deliver long-term sustainable solutions • HMRC will continue to make tackling serious fraud and criminal attacks on the tax system a priority, increasing wider activity to ensure that individuals and businesses pay the correct tax
HMRC states that it is important that the tax system continues to work efficiently, as it funds essential public services, such as the NHS. Tax returns should be filed, and tax paid on time where possible.
Tax collection and benefit payments
Taxpayers and claimants are reminded to continue to file their tax returns and claim forms or renewals on time. Penalty notices are being issued to those businesses and individuals who have not met their obligations, but HMRC will take a sympathetic approach to those who are struggling to file their returns or pay their tax on time. The impact of Covid-19 can be accepted as a reasonable excuse, but as time goes on, customers will be expected to meet the deadlines, and appeals where Covid-19 has been cited as an excuse will be looked at more closely.
Anyone who can’t meet the deadlines should contact HMRC.
Compliance checks
Compliance checks allow HMRC to investigate someone’s tax affairs if they suspect that they are not paying the correct amount of tax. A customer-first approach will be taken where there are existing ongoing compliance checks, and during this period, new enquiries will only be opened into those badly affected by coronavirus or anyone leading the fight against the virus, if HMRC believes that they can engage and resolve the enquiry.
Tax enquiries may be opened even if a taxpayer has been severely affected, in situations where:
• Criminal activity, fraud or significant deliberate non-compliance is suspected • Not doing so would mean missing a deadline preventing HMRC from ever collecting unpaid tax • Employees need to be protected, for example, with the National Minimum Wage (NMW) • A mandatory check must be carried out • Debt When lockdown measures were relaxed in some areas, HMRC debt collection activities were restarted. HMRC has confirmed that the focus will be on collecting tax debts from those customers least impacted by coronavirus, and most able to pay their debts. Businesses who have agreed a payment deferral with HMRC have been contacted so that they can be supported into Time To Pay arrangements. HMRC has also begun making contact with businesses with new debts that have arisen since March 2020.
If businesses or individuals are worried about payment of tax bills, then they should call the Payment Support Service as soon as possible.
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The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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