HMRC has published new guidance in its Trust Registration Service Manual at TRSM70070 on how to report trust discrepancies by 1 September 2022 which is the deadline for most trusts to be registered on the trust registration service. Existing guidance on managing a trust’s details and registering trusts as an agent or trustee has also been updated with information on obtaining proof of registration as this is required where a trust seeks to start a new business relationship with a ‘relevant person’.
A report to HMRC can be sent by a ‘relevant person’ where there is either a discrepancy in the information one has about the trust and what is on the proof of registration document, or if the trust is not registered with HMRC where it is believed it should be. A discrepancy is defined as happening when the trust is a registrable express trust that is not registered and the trustee cannot provide a proof of registration document, or information that a relevant person holds about a trust is significantly different from what is in the proof of registration document from the trustee or agent.
HMRC suggests contacting the trustee or agent to resolve the discrepancy before reporting to HMRC. This can be done by either encouraging them to register the trust or correcting the information by managing the trust’s details. The guidance clarifies what needs to be included in the report in addition to what will not need to be reported.
HMRC has also clarified that where a trust wants to start a new business relationship with a ‘relevant person’, an up-to-date copy of the trust’s proof of registration document is required. A pdf copy can be obtained in the online service by selecting ‘Get evidence of the trust’s registration’. The proof of registration will show the trust’s registration and all the beneficial owners listed within it.
HMRC has published new guidance in its Trust Registration Service Manual at TRSM70070 on how to report trust discrepancies by 1 September 2022 which is the deadline for most trusts to be registered on the trust registration service. Existing guidance on managing a trust’s details and registering trusts as an agent or trustee has also been updated with information on obtaining proof of registration as this is required where a trust seeks to start a new business relationship with a ‘relevant person’.
A report to HMRC can be sent by a ‘relevant person’ where there is either a discrepancy in the information one has about the trust and what is on the proof of registration document, or if the trust is not registered with HMRC where it is believed it should be. A discrepancy is defined as happening when the trust is a registrable express trust that is not registered and the trustee cannot provide a proof of registration document, or information that a relevant person holds about a trust is significantly different from what is in the proof of registration document from the trustee or agent.
HMRC suggests contacting the trustee or agent to resolve the discrepancy before reporting to HMRC. This can be done by either encouraging them to register the trust or correcting the information by managing the trust’s details. The guidance clarifies what needs to be included in the report in addition to what will not need to be reported.
HMRC has also clarified that where a trust wants to start a new business relationship with a ‘relevant person’, an up-to-date copy of the trust’s proof of registration document is required. A pdf copy can be obtained in the online service by selecting ‘Get evidence of the trust’s registration’. The proof of registration will show the trust’s registration and all the beneficial owners listed within it.
