The 2014–15 Self-Assessment (SA) filing deadline is fast approaching and HMRC is urging all taxpayers to find their inner peace by returning theirs before the 31 January. Below we present some topics relevant to the upcoming filing deadline.

Digital Tax Accounts

More than 85% of taxpayers chose to submit their return online last year. If you’re filing online for the first time, you will need to register for an activation code, which will be posted to you. This can take a few days, so you’ll need to allow time for this.

But remember – you have to file and pay any tax owed by the 31 January to avoid paying a penalty or interest on any tax paid late.

This year HMRC are giving more than one million SA customers access to their own Digital Tax Account for the first time. This is an online service personal to each individual customer, allowing them see how their tax is calculated, update personal details and access all their tax information in one space, just like online banking.

Payslips and return reminders

Remember, no payslips and paper SA reminders will be issued by HMRC before the 31 January 2016 filing and payment deadline.

Anyone who requires a paper payslip to make payments (over the counter at banks, building societies and Post Offices) was required to file their return before 31 December 2015. Anyone filing on or before that date will receive a paper SA statement and payslip this month as long as they have not opted to solely receive digital communications from HMRC.

HMRC will not be issuing paper SA reminders and payslips for those opting to use digital SA communications or for taxpayers who file in January 2016. Payment options available are by debit/credit card, CHAPS/BACS online or via telephone banking.

Faster repayments?

HMRC has introduced “Bank Wizard” to the self-assessment online tax return. This is intended to help get more repayments to the right account quicker.

Bank Wizard will validate any bank account information entered at Section 4 “Filling in your Tax Return”. It checks the bank sort code entered to ensure it is a valid sort code, as well as checking that the format of the account number entered is correct.

If an incorrect entry is made an error message will appear. If a repayment is paid to the wrong account, HMRC need to wait on that being recovered before a new repayment can be issued.

Accessing digital services safely

HMRC takes the security of customer information very seriously, and aims to work to the highest standards to ensure the security of its digital services and legitimacy of transactions.

HMRC are constantly working to help protect you, and your clients, and to give you up to date advice and guidance on online security. It’s the responsibility of us all to remain vigilant on digital security. Good cyber security will save everyone involved in tax time and costs – this includes agents, tax professionals, their clients, and HMRC.

A key element of online security is using agent and client online credentials appropriately. The majority of agents have successfully registered for HMRC Online Services and have set up client authorisations online.

It is really important that agents do not login or try to login to HMRC digital services using clients’ credentials. In order to protect all customer accounts, HMRC is using increasingly precise monitoring that will pick up access by agents who have not set up online client authorisation. It is vitally important that you set up correct client authorisation to ensure you have continued online access to your clients’ accounts.

HMRC are continuing to develop digital services for agents through Agent Online Self-Serve (AOSS). AOSS is being developed with input from agents to ensure that services best meet your needs. Keep updated on AOSS via the HMRC Tax Agent Blog.

Private residence relief

HMRC have issued a reminder that, from the tax year 2014/15 onwards, there are changes to private residence relief.

If your clients have disposed of residential property, on which they wish to claim private residence relief, they need to be aware of the amendment to the period classed as ‘final period of ownership’. This has been reduced, from 36 to 18 months, depending on circumstances, with effect from 6 April 2014. Guidance is available within the capital gains manual.