Tax tips re: Persons With Significant Control and Community Forums Closure

This Tax Advice Network Linkedin newsletter contains a sample of our recent tax tips. You could be getting 3 such timely, topical and commercial tax tips written specifically for general practitioner accountants EVERY WEEK; and with direct links to the source material. Register to get yours now >>>

HMRC Writing to ‘Persons With Significant Control’

HMRC is corresponding with ‘Persons with Significant Control’ (PSCs) to verify whether they have declared all of their income and gains for the tax year 2023/24. Sometimes referred to as ‘beneficial owners’, a PSC is, broadly, someone registered at Companies House holding:

• More than 25% of shares in the company;
• More than 25% of voting rights in the company;
• The right to appoint or remove the majority of the board of directors

Whilst HMRC state this is not a formal compliance check, they are sending one of two letters to say they have reviewed the information held by Companies House and believe that action may need to be taken. This is because as a result of their significant control, they may have sources of taxable income and gains to declare, for example:

• Personal costs paid by the company that are not reimbursed;
• Loans received that are beneficial or not repaid;
• Share purchases or disposals;
• Use of company assets where an appropriate market rent or equivalent is not paid; and/or
• Assets transferred from the company

In short, all of the above are examples of income / gains of which there is a liability to report via Self-Assessment. If you have any PSC clients, you need to be aware of the contents of the letters.

Action for Accountants

This is another ‘be aware that HMRC are corresponding’ Tip. After all, you may have PSCs as clients and they may contact you on receipt of the letter. Note that the individual will receive one of the following two letters:

Letter 1

This asks the PSC to review their 2023/24 tax return to ensure all income and gains were reported. Any errors or omissions need to be corrected by 25 July 2025, with included guidance. This guidance requests that the individual declares all taxable income and gains are reported in their 2024/25 tax return.

Letter 2

This is directed at PSCs that HMRC have identified but have not submitted a tax return for 2023/24. The PSC must check if a return is needed and, if so, submit it by 25 July 2025. If the PSC believes a return is not required, they should contact HMRC using the details in the letter.

Both letters describe the consequences for the PSC of not taking the appropriate action by the specified deadline.

People with significant control (Gov.UK)

HMRC Prepares for Community Forums Closure on 30 June 2025

In our Tips newsletter dated 01 May 2025, we advised that HMRC’s Agent and Customer Online Forums will close on 30 June 2025. In preparation for the closure, both forums have stopped accepting new registrations and new queries. So, if you were a fan, we hope that you managed to submit your queries as you won’t have the opportunity to now.

Further, HMRC have removed reference to the forums on the following guidance pages on Gov.UK:

• HMRC email updates, videos and webinars for company directors;
• HMRC email updates, videos and webinars for off-payroll working; and
• HMRC email updates and videos for Inheritance Tax

It is understandable that references have been removed and will continue to be removed from all other pages on Gov.UK. It’s now a question of finding the digital alternative that you will have to get used to.

Action for Accountants

HMRC’s ‘Welcome to the HMRC Community Forums’ page on Gov.UK gives confirmation the closure is in response to the ‘popularity’ of their digital support channels. Whilst we make no comment on the fact that they are ‘superior’ to the forums, there is no doubt that they are ‘newer’ and the closure is a recognition of the fact that, increasingly, we use online resources.

The above Gov.UK page does provide alternatives and we outline this for you – note that HMRC provide links to all of these services:

For Customers

For guidance and education:

• GOV.UK;
• Recorded webinars (where you can sign up to receive notifications of future webinars);
• The HMRC App; and
• HMRC’s YouTube Videos

To ask a question:

• Visit ‘Contact HMRC’, choose the area / tax and ‘Ask HMRC online’ for HMRC’s digital assistant; and
• Use X (formerly Twitter) but note this is for general queries and you should not give out any personal information

For Agents

There are a range of support services available and we encourage you to make use of these:

• Webchat (which is agent only);
• X (@HMRCcustomers) and for general queries;
• Agent Talking Points Webinars;
• Tax agents’ handbook;
• The Service Dashboard; and
• The monthly Agent Update which covers a broader range of taxes than the Employer Bulletin

Welcome to the HMRC Community Forums (Gov.UK)

---

The above is just a sample of our topical, timely commercial tax tips. Remember to register for your weekly email containing 3 such tips for general practice accountants EVERY WEEK. Register to get your copy here now >>>

Tax Support for your practice

Whether you want help with a one-off issue or to arrange for regular support, our website is the easiest way to find the right person you need

PCRT

The Guide to Professional Conduct in Relation to Tax (PCRT) requires that you obtain:

• appropriate assistance for tax work that goes beyond your experience and expertise.
• a second opinion whenever you provide what you consider to be a significant opinion of your own.

Find specialist tax advisers with the expertise you need via our website. It costs nothing to use the website and to choose your preferred adviser.

You can then engage directly with them. No middle man, no salespeople and no junior staff.

Founded in 2007, our FindaTaxAdviser.online website is the easiest, free to use and highest ranked online resource to find specialist tax advisers in the UK.