The latest list of notices from HMRC

As we have previously reported, HMRC regularly send out updates on forms and procedures. The following is the latest batch of announcements.

Guidance: Simplified tax system for classical music: payees for non-UK resident performers - Non-UK resident performers who perform in the UK fall within specific arrangements for taxing payments for that UK work.

Withholding tax should be deducted by payers and, in some cases, Self Assessment returns will be required from individual performers.

This list relates only to payments made in respect of classical music artists. Payments made direct to any payee included on this list may be made gross (without deduction of tax).

Payments made direct to a performer or a payee not included on the list will be liable to tax at the basic rate unless otherwise notified by the Foreign Entertainers Unit.

The current list can be found here.

List of Recognised Overseas Pension Schemes notifications - The list contains pension schemes that have told HMRC that they meet the conditions to be a ROPS and have asked to be included on the list.

An updated list of ROPS notifications is published on the first and 15th day of each month. If this date falls on a weekend or UK public holiday the list will be published on the next working day.

Sometimes the list is updated at short notice to temporarily remove schemes while reviews are carried out, for example, where fraudulent activity is suspected.

HMRC can’t guarantee these are ROPS or that any transfers to them will be free of UK tax. It is your responsibility to find out if you have to pay tax on any transfer of pension savings.

The latest list can be found here.

Income Tax: notice of transfer of surplus Income Tax allowances (575(T)) – There are a couple of ways in which individuals can advise HMRC that they wish to transfer unused Married Couple’s Allowance or Blind Person’s Allowance to their spouse or civil partner, they can either: use the online form service (sign in to, or set up a Government Gateway account) print the postal form, fill it in by hand and post it to HMRC

If they use the online form, they will get a reference number that they can use to track the progress of their form.

To fill in the form, they will need:

the date of marriage or civil partnership their spouse or civil partner’s HMRC reference (this can be found on any letter or form they’ve had from their HMRC office) their spouse or civil partner’s National Insurance number (on the spouse or civil partner’s payslip, P60 or tax return) details of their income and deductions for this tax year details of the allowances they want to claim for this tax year.

Details of how to apply by either method can be found here.

Learn Comment

Sadly, many individuals have still not claimed for the transfer of unused allowances and perhaps organisations could do something to promote the subject.

At Budget 2014, the Chancellor announced that this ‘proportion’ will be set as 10% of the Lower Personal Allowance. 2016/17 sees this Allowance set as £11,000, the maximum Transferrable Allowance will be £1,100. The person in the couple that receives the transfer will benefit by paying up to £220 less tax (i.e. £1,100 @ 20%).

Whilst this saving of up to £220 may not seem significant, one should bear in mind that it would have a much larger impact for lower paid employees.

Couples make an online or paper claim to transfer unused allowances (up to £1,100 for 2016/2017). However, to facilitate the operation of the Transferrable Allowance, there are two new suffixes letters:

Suffix N indicates that the taxpayer is a ‘transferor’ – i.e. that they have transferred some or all of the £1,100 Suffix M indicates that the taxpayer is a ‘recipient’ – i.e. that they are in receipt of up to £1,100 from a spouse or Civil Partner

It is an online, one-off application that will remain in place until it is cancelled and it must be made by the person transferring the allowance