There are special procedures for importing goods into the UK. Following the end of the Brexit transition period on 31 December 2020, the process for importing goods from the EU effectively mirrors the process for all non-EU international destinations.

However, a number of easements had been in place to help ensure a smooth transition for goods coming from the EU. This included a delay in the requirement for full customs declarations and controls until the end of this year.

And so, from 1 January 2022, businesses will no longer be able to delay making import customs declarations under the Staged Customs Controls rules that have applied during 2021. This will mean that most businesses will have to make declarations and pay relevant tariffs at the point of import.

Affected businesses should ensure that they consider as a matter of urgency how they are going to submit customs declarations and pay any duties. Businesses can appoint an intermediary, such as a customs agent, to deal with their declarations or they can submit them directly; although this can be daunting for businesses unused to the processes involved.

There is a ‘Simplified Declarations’ authorisation from HMRC that allows some goods to be released directly to a specified customs procedure without having to provide a full customs declaration at the point of release. However, this needs specific authorisation from HMRC and there are also other requirements that must be met. An application made now is unlikely to be approved before 1 January 2022.

There are a number of different options open to taxpayers that disagree with a tax decision issued by HMRC. Usually, the first step is to make an appeal to HMRC against the tax decision. The case worker who made the decision will look at your case again and consider your appeal. If they do not change their decision, you can request what is known as a ‘statutory review’. This is where the decision is looked at by someone at HMRC who was not involved in the original decision.

If the taxpayers do not agree with HMRC’s review, there are further options available which include making an appeal to the tax tribunal or using the Alternative Dispute Resolution (ADR) process.

If you decide to appeal to the First-tier Tribunal (Tax) in relation to a ‘direct tax’ issue you must have appealed to HMRC first. For ‘indirect tax’ issues such as VAT and excise duties you can usually lodge an appeal straight to the Tribunal. An appeal to the Tribunal must be made within the time limit stated on your decision letter and any disputed tax ‘due’ must usually be paid upfront. An appeal can normally be made online or by post.

You can apply for ADR after you’ve appealed to the tribunal and your appeal has been accepted. The ADR seeks to offer a fair and quick outcome for both parties, helping to reduce costs and avoid a Tribunal case. However, in some cases the cost and effort of going to Tribunal can be worthwhile and needs to be properly considered.

The government announced back in September that the introduction of Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA) has been delayed by one year until April 2024. There had been widespread concerns on the speed of the MTD for ITSA rollout and the delay was widely welcomed.

In tandem with this announcement, the government also announced that proposals for Income Tax basis period reform would also be delayed until the 2024-25 tax year with 2023-24 being a transitional year. The proposals change the basis period from a ‘current year basis’ to a ‘tax year basis’. Under the current rules there can be overlapping basis periods, which charge tax on profits twice and generate corresponding ‘overlap relief’ which is usually given on cessation of the business. The new method of using a ‘tax year basis’ removes the basis period rules and prevents the creation of further overlap relief. 

HMRC has published a new policy paper on this change. The paper confirms that the measure will only affect businesses which draw up annual accounts to a date different to 31 March or 5 April (mainly seasonal businesses and large partnerships), and businesses that commence from 6 April 2024. On transition to the tax year basis in the tax year 2023 to 24, all businesses’ basis periods will be aligned to the tax year and all outstanding overlap relief given.

HMRC is responsible for the money laundering supervision of certain businesses including letting agencies. Businesses that HMRC is responsible for supervising should be aware of the requirement to register with HMRC and the penalties for failing to register. It is a criminal offence to trade as a letting agency business (as defined within the Regulations) without being registered for money laundering supervision.

You may need to register with HMRC if your business operates as a letting agency business.

A letting agency business means a firm or sole practitioner whose work consists of things done in response to instructions received from a:

• prospective landlord seeking to find another person to let land to,
• prospective tenant seeking to find land to rent.

This is for a term of a month or more and over €10,000 per month. This covers both residential and commercial property lettings.

A lettings agent carrying out lettings activity not defined within the Regulations, for example, below €10,000 per month, is not required to register.

There are penalties for not registering in a timely manner. If you think you should have been registered or need further clarification, we would be happy to help.