Paying HMRC, Tagging accounts for iXBRL and SEIS forms

In our latest tax tips email for accountants we said:

This week we highlight three tax compliance issues which can trip-up taxpayers and tax advisers; how to pay HMRC, how to submit company accounts to HMRC, and when you need to use a specific form to claim tax relief. The approved methods for submitting payments and company accounts are changing in the next three months, so please warn your clients.

Below is just an extract from that email. To receive the full email when it is published each Thursday, simply follow the link on the right (or below, if you’re reading this on a mobile device)

Paying HMRC

An essential part of your tax return service is telling your clients how much tax they have to pay and by what deadlines. This year you should also advise clients to consider how they plan to pay their tax bill, for instance by; cheque, credit/debit card, or electronic transfer.

Taxpayers who normally pay their tax liabilities due on 31 January by personal credit card, will need to pay before 13 January 2018, as HMRC won’t accept payments by personal credit card after that date. Payments by corporate credit cards will continue to be accepted.

This change is required to comply with the EU Payment Services Directive 2, which comes into effect on 13 January 2018. This Directive prohibits all organisations who accept credit card payments, including HMRC, from recharging the associated fees back to their customers, or in this case – taxpayers. There are fees for paying by credit card which vary considerably according to the type of card used (see link to schedule).

Some taxpayers prefer to pay their tax by cheque, either by sending a cheque in the post with an appropriate payslip to HMRC, or by paying at a Post Office counter with a pre-printed payslip from HMRC.

The Post Office counter service is being withdrawn from 15 December 2017. This will particularly affect small companies who pay their corporation tax in this way, as HMRC’s official position has been not to accept cheques in the post for corporation tax, although cheques that arrive are usually cashed.

Taxpayers will still be able to pay their tax liabilities at a bank or building society branch by cash or cheque, but they need the HMRC printed payslip to do this. The facility to print a payslip still exists on HMRC archived pages (see below), but this DIY payslip can only be used for cheque payments sent by post, not those made by at the bank counter.

Planned dividends, Death penalties, HMRC bank accounts

Last week we returned to the topic of the new dividend tax, as without forward planning many shareholders will see their tax bills increase in 2016/17 by at least 7.5%. We also explored the problems that can arise from errors in a deceased person’s tax return, and updated accountants about the new HMRC bank accounts.

This is an
extract from our topical tax tips newsletter dated 3 March 2016
(5 days before we publish an extract on this blog). You can obtain future issues by registering here>>>

HMRC bank accounts 
HMRC is moving it’s bank accounts again, for the third time in 15 years. This is part of the open tendering policy under which key Government contracts are regularly reviewed. For banking facilities this appears to occur every seven years. 
This time the accounts are moving from the RBS and Citi Banks to Barclays Bank, but most taxpayers won’t have to do anything different. The account numbers and sort codes of the HMRC accounts are moving to the new bank, so all UK electronic payments will proceed as normal. Also all cheques sent to HMRC will be processed as normal. 
However, taxpayers who pay HMRC from a bank account situated outside the UK will have to use a new IBAN number, the details of which are shown in the links below. Overseas HMRC “customers” are being informed about this bank account change via a personalised letter, but you could tell your non-resident clients by email rather quicker. 
The next big tax payment date which will be important to overseas residents is 30 April 2016 when the ATED charge for 2016/17 is due. ATED is payable by companies or other non-natural persons who hold UK residential properties which are worth over £500,000 (threshold reduces from £1 million on 1 April 2016). This can include companies or partnerships with corporate members which are resident outside the UK. 
To pay the ATED charge the taxpayer must quote their ATED reference number. However, to get an ATED reference number the taxpayer must first submit an ATED return, which is due on the same day: 30 April 2016. So if this is the first year the taxpayer is due to pay the ATED charge, the ATED return must be submitted early in order to get a reference number to pay the ATED charge on time. 

This is an
extract from our topical tax tips newsletter dated
3 March 2016 (5 days before we publish an extract on this blog). You can obtain future issues by registering here>>>

full newsletter contained links to related source material for this
story and the
other two topical, timely and commercial tax tips. We’ve been
publishing this newsletter weekly since 2007; it’s clearly written
and focused on precisely what accountants in general practice need to
know about each week.
You can obtain future issues by registering here>>>