In May 2017, we covered a story that HMRC had launched a national Trusts Register requiring all trusts that have taxable income or taxable gains to register with HMRC using their new, online service.
A trust is a separate legal entity to you, us and a business. Trusts have their own ‘personal’ tax free income tax and capital gains tax allowances and rates of tax.
As such, a trust must file its own tax returns on 31st January, much in the same way as self-assessment.
HMRC confirmed that many trusts have missed the deadline for registration and also failed to submit tax returns by the 31/01/2018 deadline. HMRC was also offering a late registration date without penalty up to 05/03/2018.
That said, this week HMRC has confirmed that it will NOT automatically levy late filing penalties for those trusts that have failed to register and missed the deadline if you can prove that you have done “everything reasonably possible” to register the trust on time then no penalties will be levied.
Types of trusts are affected?
All trusts which have income or capital gains must complete a UK trust and estate tax return including:
Take action, Register the trust now:
If you have a trust, or you are a trustee, then get it registered. Do not delay. The longer the delay, the greater the penalty.
If you are not sure, contact HMRC direct or contact us for advice, particularly if you are not sure whether your trust should be registered or filing tax returns.