Reporting to HMRC

Reporting to HMRC

If you have reportable accounts, or have elected to exempt entity accounts under the value of $250,000 from the checks on pre-existing accounts you will need to submit a return to HMRC.

The reporting periods run in calendar years and the first reporting period ends on 31 December 2016. The deadline for returns is every 31 May starting from 2017.

Registration

Existing HMRC Online Services users

To access HM Revenue and Customs (HMRC) Online Services and register for AEOI:

1. Select the link ‘Sign in’ on HMRC services: sign in or register.
2. Enter your User ID and password.
3. Under ‘Get another tax, duty or scheme’ select ‘Find a tax, duty or scheme’.
4. Follow step 7 onwards under ‘New Users’ below.

New Users

Access HMRC online services and register for AEOI:

1. Go to the Government Gateway website and under ‘Organisations’ select ‘Register as an Organisation’.
2. Select the ‘Register’ box under Register and complete the required details and submit.
3. You will be given a Government Gateway User ID which you should note and then log out of the account.
4. Sign in to HMRC online services.
5. Enter your User ID and password for the Government Gateway as step 3 above.
6. Under ‘Add taxes to start managing them online’ – Click ‘Add a tax, Duty or Scheme’.
7. Select – Other Taxes or Schemes > Continue > Select Automatic Exchange of Information (AEOI) > Continue.
8. Select – No I haven’t registered yet > Continue > Select Continue – register for AEOI.
9. You will be presented with a page listing the information you will need to proceed with the registration.
10. Continue completing pages and/or selecting ‘Next’ until a Declaration page is displayed – tick the declaration and then click ‘Next’.
11. On the Security check page complete your User ID and password and click ‘Submit’.
12. You will then be given your Automatic Exchange of Information ID, which you should note and then sign out.
13. It may take up to 24 hours before your Automatic Exchange of Information service is active. When you next log in (see steps 4 and 5) you will see Automatic Exchange of Information displayed – click ‘View Account’ which will take you to the ‘At a glance page’ where you can select the action you wish to take.

Completing your registration

To complete your registration you will need to fill in certain information about the credit union and the user registering the account.

N.B You will be asked for a Global Intermediary Identification Number (GIIN), which you may not have unless you have already registered under FATCA. If you do not have a GIIN, enter 000000.00000.LE.000 in the field that requests it.

You will also be asked what filer you are for FATCA purposes, the vast majority of credit unions in the UK are categorised as a ‘Certified-Deemed Compliant Non-registering Local Bank’, at the time of writing this option is not available, but it is possible to proceed without completing this question.

Once you have completed the registration you’ll be provided with the following:

• AEOI ID (10 digit reference)
• HMRC Registration Identification Number

These are the 2 reference numbers that you’ll need to submit a return. You will need to wait 24 hours after registration before you can submit a return. HMRC guidance on registration is available online.

Information required by HMRC on reportable accounts

1. In the case of each reportable person that is an account holder of the account:

1. The name and address,
2. Tax Information Number (TIN)[1] or functional equivalent
3. Date and Place of birth

In the case of an entity that is an account holder and that is identified as having one or more controlling persons that is a reportable person:

1. The name and address
2. Tax Information Number (TIN) of the entity
3. The name, address, TIN, date and place of date of birth of each reportable person;

2. The account number (or functional equivalent of an account number);

3. The name and identifying number (if any) of the reporting financial institution;

4. The account balance or value (including, in the case of a insurance contract or annuity contract, the cash value or surrender value) as of the end of the relevant calendar year, or, if the account was closed during such year or period, the closure of the account;

5. In the case of any custodial account[2]:

1. The total gross amount of interest, dividends, and other income generated in relation to the assets held in the account, in each case credited to the account during the calendar year;
2. The total gross proceeds from the sale or redemption of property paid or credited to the account during the calendar year or other appropriate reporting period with respect to which the reporting financial institution acted as a custodian, broker, nominee, or otherwise as an agent for the account holder;

6. In the case of any depository account, the total gross amount of interest paid or credited to the account during the calendar year; and

7. In the case of any account not described in 5 or 6 of this section, the total gross amount credited to the account holder during the calendar year with respect to which the reporting UK financial institution is the obligor or debtor, including the aggregate amount of any redemption payments made to the account holder during the calendar year.

Requirement to notify reported persons

(1)  A firm must notify each individual reportable person that information relating to that person will be reported to HMRC and may be transferred to the government of another territory in accordance with a relevant agreement.

(2)  The notification must be made by 31st January in the calendar year following the first year in which the account held by the individual is a reportable account maintained by the reporting financial institution.

N.B. HMRC state that firms can notify customers wholesale through the terms and conditions of the account.

If you have any difficulties with registering or submitting your return please contact your MRM by emailing them direct, on info@abcul.org or dialling 0161 832 3694

[1] For example, the Tax Information Number (TIN) or equivalent for the UK would be an individual’s national insurance number, however, the format of these vary from country to country. More information on various participating TINs can be found here.