HMRC’s agent update – economia

Stay up-to-date with the latest business and accountancy news: Sign up for daily news alerts

Published: Yesterday at 03: 06 PM GMT Update History
Agent Update 104 contains numerous updates for agents. Many have been shared in tax news, but the following should also be noted.
When setting up a government gateway user ID to access HMRC services, taxpayers need to verify their identity. HMRC is now providing an alternative way to do this.
A new identity checking app lets taxpayers use the camera on their mobile phone to confirm a match with either their UK photocard driving licence or ePassport.
To use the app, taxpayers must:
HMRC plans to add more options for proving identity during 2023. If they prefer, taxpayers can provide two forms of evidence instead of using the new app. Taxpayers who already have HMRC sign-in details are unaffected.
Set up a personal tax account
Using a business tax account
The authorise a tax agent to use PAYE and Construction Industry Scheme (CIS) online services (FBI2) form is being removed from GOV.UK on 31 January 2023. The revised authorising your agent 64-8 form introduced in March 2022 can be used to authorise agents for Employer PAYE and CIS services.
HMRC will continue to recognise existing authority provided on an FBI2. ICAEW understands that HMRC will continue to process new FBI2 forms that it receives, but agents are encouraged to use a 64-8.
Disposals or exchanges of cryptoassets may give rise to gains that are taxable for capital gains tax (CGT) purposes, or allowable losses. Taxable gains arising between 6 April 2021 and 5 April 2022 should be reported on a taxpayer’s self assessment tax return due by 31 January 2023, and any associated tax paid by that date.
Gains on cryptoassets can arise in a number of ways, not only on transactions that individuals may identify as disposals. HMRC has published guidance and a dedicated manual setting out its interpretation of how the CGT legislation applies to cryptoassets.
Agent Update helpfully states the 2022/23 and 2023/24 class 2 and 4 thresholds for self-employed profits. However, it does not mention that self-employed individuals with profits of less than the small profits threshold of £6,725 (2021/22 £6,515) or losses can voluntarily pay class 2 NIC of £3.15 (2021/22 £3.05) per week.
To tell HMRC that voluntary payments will be made in these circumstances, put ‘x’ in box 36 of the short self-employment page or box 100 of the full self-employment page of the self assessment return. The class 2 NIC should be paid by 31 January, alongside any self assessment balancing payment. Paying voluntary NIC entitles the trader to state pension and certain contributory social security benefits.
From April 2022, those with profits above the small profits threshold (£6,725) and no more than the lower profits threshold (£11,908) are not liable to pay class 2 NIC, but will be given an NIC credit. This credit will provide the same benefits as if class 2 NIC had been paid (see above).
In 2022/23, class 2 NIC of £3.15 pw (2021/22 £3.05 pw) must be paid if self-employed profits exceed the lower profits threshold of £11,908 (2021/22 small profits threshold of £6,515). Traders with profits below the small profits threshold or losses can still pay voluntary class 2 NIC.
The class 4 lower profits limit is currently £11,909 a year (2021/22 £9,568). In 2022/23, traders with profits of this figure and above will pay class 4 NIC at 9.73% (2021/22 9%) up to the upper profits limit of £50,270 (2021/22 £50,270) and 2.73% (2021/22 2%) on profits above this limit.
The thresholds at which the self-employed start paying both classes 2 and 4 NIC, (ie, the class 2 lower profits threshold and the class 4 lower profits limit), have been aligned for 2022/23 onwards.
See Rates & allowances: NIC 
ICAEW’s Tax Faculty is recognised internationally as a leading authority and source of expertise on taxation. The faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.
ICAEW’s Tax Faculty provides technical guidance and practical support on tax practice and policy. You can sign up to the Tax Faculty’s free enewsletter (TAXwire) which provides weekly updates on developments in tax.
Stay up to date with the latest developments in tax by signing up to the Tax Faculty’s weekly enewsletter
Comprehensive support for Tax practitioners each month from the Tax Faculty and expert contributors.
Expert advice from the Tax Faculty’s technical managers on all the developments in tax policy and practice.
The Institute of Chartered Accountants in England and Wales, incorporated by Royal Charter RC000246 with registered office at Chartered Accountants’ Hall, Moorgate Place, London EC2R 6EA


Leave a Comment