Trust registration penalties eased
Non-taxable trusts need to be registered with HMRC’s Trust Registration Service by 1 September. What happens if you miss this deadline?
The scope of the Trust Registration Service (TRS) has been extended to include non-taxable trusts. You can find out which trusts need to be registered here. The deadline for the initial registration is 1 September 2022, however, as this requirement is still new, HMRC has confirmed that no penalty will be charged for a “first offence”. This covers both failure to register and late registrations.
As ever, there is an exception to this easement; If the trustees deliberately don’t register the trust on time, or there are repeated offences, the penalty will be as high as £5,000 per offence.
You may have a trust that needs to be registered that you aren’t even aware of, as it isn’t just formal trusts that fall within the scope of the requirements. For example, a bare trust arrangement, land and property where the legal owner and beneficial owners differ or will trusts.
Related Topics
-
Can you beat the bonus tax trap?
A fellow director has asked whether his bonus payment can be delayed until after 5 April 2026 to reduce his personal tax bill. Does his plan work and, if so, how does it impact the company’s tax position?
-
HMRC publishes penalty guidance for MTD IT
HMRC has published guidance on how penalties will apply under Making Tax Digital for Income Tax (MTD IT). With mandation approaching from April 2026, what do you need to know about the new regime?
-
Company car calculator
Want to know the amount of the benefit you will be taxed on by taking a company car? Easily work that out with our tool, you can even see what difference making a contribution to the cost of the car will have.