HMRC Helpline Changes and Employee Expenses

As the dust begins to settle following some major announcements by the government towards the end of last week, this morning’s update covers a few practical matters that have emerged and that we think might be useful.

HMRC Coronavirus Helpline Change

HMRC have changed the Coronavirus Helpline number to 0800 024 1222. The revised opening hours are Monday – Friday 8am – 4pm.

Since its inception the line has been understandably busy with waiting times extending to hours. The intentions of the changes are to cope with demand whilst mitigating the impact of a reduced workforce due to Coronavirus.

All calls made to the previous number will be redirected to the one above, however we’d recommend calling the new one directly to avoid a potential ‘queue to join a queue’.

In response to reduced capacity on the phone line, HMRC have introduced a webchat system which can be used to discuss difficulties paying self assessment, VAT, PAYE and corporation tax as a result of the Coronavirus outbreak.

HMRC’s webchats don’t usually allow users to discuss matters on a specific basis (only providing ‘general’ advice) however the communication from HMRC implies this is no longer the case and that issues can be resolved – we’d be interest to hear from clients who use this to hear of their experiences.

As has been widely reported in recent weeks the scope for fraud at the moment is significant – therefore please ensure you only use the links provided by HMRC to access this service and if anything doesn’t feel right stop the process straight away and contact us.

The link to the HMRC webchat site is as follows: https://www.tax.service.gov.uk/ask-hmrc/webchat/payment-problems

VAT Direct Debits

As has been widely communicated in recent weeks, HMRC have allowed the deferral of all VAT payments between now and the end of June until July, with 31 March 2021 the ultimate deadline for catching up on delayed payments as a result of Coronavirus.

If you have a direct debit in place for payment of VAT please cancel this as soon as possible.

During the deferred payment period VAT returns must still be filed as normal, therefore once filed payment will still be made if a direct debit is still in place.

Scams

As was touched upon in the Helpline section above, we have been made aware of an increase in the number of scams circulating as a result of the Coronavirus outbreak.

Cruelly intended to exploit the vulnerability of the public at a worrying and stressful time, our advice is clear – if something doesn’t seem right it probably isn’t.

End the call, avoid clicking the link, take a few minutes to consider things and certainly don’t provide any personal or financial details unless you are sure it safe to do so - if you are in any doubt (especially with regards to HMRC or any other related matters) please contact us to chat it over.

Employee Expenses When Working From Home

Given the increase in those currently working from home, HMRC have issued guidance in response to a number of queries received requesting clarity on claimable employee expenses.

The link to the government site is below, however the following summarises the expenses able to be claimed without giving rise to a chargeable benefit to the employee:

• One mobile phone (with unrestricted personal use).
• A broadband connection where one was not already available where personal use is limited.
• Laptops, tablets, computer equipment and other office supplies where these are mainly for business use (note reimbursement of expenses for items such as this already bought by the employee would be taxable, either via P11d or PSA).
• Up to £4 per week for utilities such as electricity, heating and broadband. No receipts, invoices or similar are required for this claim. Anything in excess of this will require documentary evidence and justification should HMRC query it.
• Loans of up to £10,000.
• Mileage for use of a personal vehicle at 45p for the first 10,000 miles in the tax year, and 25p per mile thereafter.
• Furloughed workers are not entitled to receive reimbursement of employment-related expenses during the period of furlough.

Unless stated, please ensure you/your employees keep invoices/receipts to support any relevant claims.

Full guidance can be found here: https://www.gov.uk/guidance/check-which-expenses-are-taxable-if-your-employee-works-from-home-due-to-coronavirus-covid-19

If you have any questions regarding this or anything else please get in touch, and for regular updates, announcements and news please check our website (www.dsaprospect.co.uk) and make sure you’re following our LinkedIn page: https://www.linkedin.com/company/dsa-prospect-ltd