HMRC has updated guidance on reply times, genuine contact checks and withholding tax on payments to foreign entertainers and sportspersons. Here’s what accountants should know.
While not all of these updates will apply to every client, they are useful reminders for practitioners, particularly where clients are experiencing HMRC delays, receiving unexpected messages claiming to be from HMRC, or making payments connected with UK appearances by non-UK resident entertainers or sportspersons.
1. Checking when to expect a reply from HMRC
Many practitioners continue to experience delays when dealing with HMRC, and clients may not always appreciate that the delay is often outside the accountant’s control.
HMRC provides an online tool which allows taxpayers and agents to check when they can expect a reply to certain queries or requests.
The tool can be used for queries relating to areas including:
- Self Assessment
- VAT
- Corporation Tax
- employers’ PAYE
- Income Tax
- National Insurance
- Inheritance Tax
- tax credits
- Child Benefit
- Construction Industry Scheme
Agents can also use the tool to check how long it will take HMRC to:
- process an application for authority to act on behalf of a client
- amend agent details
Where there has been an extended or unreasonable delay, practitioners may also wish to consider whether a complaint to HMRC is appropriate. HMRC may consider refunding reasonable costs directly caused by its mistakes or delays, including professional fees, but this should not be treated as automatic.
Members can check expected HMRC reply times here: Check when you can expect a reply from HMRC
2. Checking whether contact from HMRC is genuine
HMRC has also updated guidance to help taxpayers and agents check whether recent contact from HMRC is genuine.
This is particularly useful where clients receive an unexpected email, phone call, text message or letter claiming to be from HMRC. In some cases, HMRC may use more than one communication method, such as sending a letter before following up by phone, email or text.
Clients should be encouraged to check before responding to unexpected requests for information, payments, bank details or login details.
The guidance includes examples of recent genuine HMRC contact and can help taxpayers decide whether a suspicious message or call may be a scam.
Members can check HMRC’s guidance here: Check genuine HMRC contact that uses more than one communication method
3. Withholding tax on payments to foreign entertainers and sportspersons
HMRC has updated guidance on withholding tax for payments made to foreign entertainers and sportspersons.
This may be relevant for clients who make payments connected with UK appearances by non-UK resident entertainers or sportspersons. Examples may include clients involved in events, festivals, sport, entertainment, modelling, advertising, promotional appearances, speaking engagements, TV, radio or media work.
HMRC guidance states that if someone who does not live in the UK is paid for making an appearance or performing in the UK, tax must be deducted where the total payment exceeds the personal allowance threshold.
This is a specialist area, but it may be important for affected clients. Even where payment is made through a third party, withholding tax obligations may still apply.
Members can read HMRC’s guidance here: Pay tax on payments to foreign entertainers and sportspersons
