Agent copies of forms
HMRC will no longer send a number of PAYE forms to Agents as part of its efficiency saving measures.
The following forms issued between now and December 2010 will now only be sent to the taxpayer and if appropriate the employer organisation. These forms include:
- P800 – Tax calculation
- P800 – Tax calculation
- SA 250 – Letter advising the customer of their unique Taxpayer Reference and detailing the requirement to Complete an annual Self Assessment tax return
- SA251 – Letter advising the customer that HMRC will not require future self assessment tax returns to be completed
The professional bodies will be making representations regarding the withdrawal of the agent’s copies of these forms but, in the meantime, it is important that clients keep their agents informed of all forms and correspondence with HMRC.
Tax calculations – end of year PAYE reconciliations
You have probably realised from the recent media coverage, that HMRC started sending out Forms P800 tax calculations for 2008/9 and 2009/10 to taxpayers from 6 September 2010. The purpose of the forms is to reconcile an individual’s total PAYE income and tax liabilities, rather than looking at the separate sources in isolation.
The types of taxpayer that will be most affected by this would typically include:
- Employees in receipt of new benefits in kind
- People with more than one job
- Pensioners with multiple pensions
The forms will only be sent to taxpayers who have paid too much or too little tax. Agents will not be sent a copy of these forms so, if you receive one, it is important to send it to your agent.
P2 Notices of coding
Notice of coding explains to the taxpayer what the tax code is and how it is worked out. If the amounts are incorrect the taxpayer could end up paying too much or too little tax.
Taxpayers and Agents will need to quickly check any notices they receive and ensure that they are revised by HMRC before the new tax year starts.
As mentioned above, agents will no longer receive copies of P2 Notices of Coding and, therefore, they should be sent to your agent as soon as they are received.
Forms SA250 and SA251
These forms are important as they notify taxpayers of whether or not they are required to complete a self-assessment tax return.
These are important forms and, once again, agent copies of these forms are to be withdrawn so, if you receive one, it is important to send it to your agent as soon as possible.
This is a guide for ACCA members to provide assistance when dealing with clients or informing colleagues. This document has no regulatory status and provides an overview of the changes.