2019-20 e-Filing exclusion list
An exclusion has been added to the Known Self-Assessment calculation errors list for 2019-20 -exclusion 116.
Customers must complete paper returns in order to get the correct calculation, and no customer will receive less relief than was before calculated by HMRC.
2020-21 onwards
From 2020-21 onwards changes will be included in the SA calculator, and customers will not be required to provide any additional information. The correct amount of relief will be calculated as part of the online tax return.
Earlier years
For periods prior to 2018-19, returns should be filed on the basis of the legislation that was applicable at the time the returns should have been made. There are guidance and examples online to assist with queries, and also in the Insurance Policyholder Taxation Manual (IPTM) in chapters 3820-3850.
HMRC will also be holding webinars on the topic throughout October and November.
VAT reverse charge on building and construction services – delayed introduction
The reverse charge measure will now be implemented from 1 March 2021, in order to help construction businesses to deal with the outbreak of coronavirus and to give them additional time to prepare. Further information on the reverse charge and how it will operate is available online. In September, every VAT-registered construction business will have been provided with a letter which advised them to check if they could potentially be liable for the reverse charge. Companies that are should begin to prepare now. The main aspects are that: • It will apply to standard and reduced-rated supplies of building and construction services made to VAT registered businesses, who also make outward supplies of those building and construction services • The contractor will be responsible for paying the output VAT due rather than the sub-contractor, but can still reclaim this amount as input tax • The scope of supplies affected is closely aligned to the supplies required to be reported under the Construction Industry Scheme but does not include supplies of staff or workers for use by the customer • The legislation introduces the concept of “end users” and “intermediary suppliers” – this covers businesses or groups of associated businesses that do not make supplies of building and construction services to third parties, and, as such are excluded from the scope of the reverse charge if they receive such supplies, for example, landlords, tenants and property developers
HMRC will be hosting a series of webinars, and recordings will be made available online.
More information on the Construction Industry Scheme is available online.
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HMRC publishes Agent Update 81 11 December 2020
The latest Agent Update issue has been published by HMRC, and includes articles that discuss Self-Assessment, along with technical updates and reminders relating to Covid-19, the EU transition, tax, customs and PAYE. The update is aimed at tax agents and advisers with the purpose of providing them with the latest news and guidance.
Self Assessment – Tax Agent Toolkits
HMRC has published 19 toolkits which include information relating to common errors that are observed on filed returns. The toolkits are updated on an annual basis to ensure that any changes that have occurred are considered, and they contain:
• A checklist to help identify the main areas in which errors occur
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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