HMRC confirms deferral of DAC6 reporting deadlines

HMRC recently confirmed that it will defer the first reporting deadlines under DAC6 by six months in light of COVID-19.

HMRC’s manual has been updated with details of how the deferral will work in practice - you can find the guidance here. In summary:

• For arrangements where the first step in the implementation took place between 25 June 2018 and 30 June 2020, reports must be made by 28 February 2021, instead of by 31 August.
• For arrangements which were made available for implementation, or which were ready for implementation, or where the first step in the implementation took place between 1 July 2020, and 31 December 2020, reports must be made within the period of 30 days beginning on 1 January 2021.
• Arrangements which become reportable on or after 1 January 2021 must be reported as normal – 30 days.

The Government will amend the Regulations to give effect to this deferral. The amended Regulations are due to come into force on 30 July 2020. Although the amended Regulations were not in force by 1 July 2020, no action will be taken for non-reporting during any period between 1 July and 30 July. In light of this deferral, HMRC’s IT systems for reporting will be made available to taxpayers and intermediaries to report arrangements ahead of the new deferred deadlines. HMRC has now published guidance on how the DAC6 legislation will operate although we note there are still a number of updates to be made.

Although this gives businesses some breathing space, we still recommend that you continue to progress with your DAC6 compliance, particularly with the retrospective exercise from 25 June 2018. Many, but not all, EU member states have also taken the option to defer. You may therefore still need to consider your reporting obligations in EU jurisdictions under the previous deadlines, which are fast approaching. Please see our article for further details on the rules and bear in mind the deferral dates mentioned above.

How Smith & Williamson LLP can help

Smith & Williamson is assisting organisations in understanding the rules, analysing past arrangements and preparing for future UK reporting. This includes:

• Impact Assessment
• Identifying processes
• Agreeing internal responsibilities
• Implementing reporting frameworks
• Monitoring legislation developments
• Assisting with the reporting, including providing businesses with access to our reporting platform.

Contact details

Please contact Tom Shave or Hema Mistry for more information and assistance with DAC6.

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DISCLAIMER
By necessity, this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. This briefing does not constitute advice nor a recommendation relating to the acquisition or disposal of investments. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. Details correct at time of writing.

Tax legislation is that prevailing at the time, is subject to change without notice and depends on individual circumstances. Clients should always seek appropriate tax advice before making decisions. HMRC Tax Year 2022/23.