Post September deadline – trusts still need to be registered

Even though HMRC have not actioned penalties for not registering existing trusts by 1 September 2022, there is still a need to register existing and new trusts. In this bulletin we remind you of the current need to register outstanding trusts.

Since 2017, HMRC have required any tax-paying trusts to be registered with them through the online Trust Registration Service (TRS). The latest UK Money Laundering Regulations extended this requirement to include most non-tax-paying trusts. It is the responsibility of the trustees to register the trust on the TRS.

The requirement to register the trust was initially given a deadline of 1 September 2022. Although this deadline has passed, HMRC has stated they will currently not fine those who have not registered by the 1 September 2022 deadline. However, there is still a need to register your trusts and the following information will remind you of the requirements.

Any existing non-taxable trusts must be registered as soon as possible. Any new trust created from 4 June 2022 must be registered within 90 days of being created. HMRC can issues fines of up to £5000 where the trustees fail to register the trust. However, HMRC have confirmed that, in recognition of the fact that the registration requirements are new and an unfamiliar obligation for trustees, there will be no penalty for a first offence, either for failure to register or late registration, unless this is due to deliberate action by the trustees.

What this means for the trustees is that, should HMRC become aware of a trust which has not been registered by the relevant deadline, a warning letter can be issued. If issued, trustees must register the trust within the deadline stipulated in the letter, otherwise a fine may be issued to the trustees. Trustees need to be made aware that if they receive such a penalty, this will be their personal liability.

Where deliberate non-compliance takes place, each case will be looked at individually by HMRC.

Another point to remember, for those trustees who may think that they don’t need to register their trust until they receive a letter from HMRC, is that, without a proof of registration, trustees of registrable trusts will not be able to deal with financial institutions or professional advisers.

There is still a need to register any outstanding trusts. If you require further guidance on this, there are the following resources available: 

On Techlink, we have created a series of documents and videos to help you guide your clients through the registration service.

In addition to the online guides, we provide a comprehensive TRS Mezzanine service which can you book here.

This is an opportunity for either you or one of your support team to receive step by step guidance on how to create a Government Gateway Organisation ID and step by step guidance on how to complete HMRC’s Trust Registration form. Through screen sharing over Zoom one of our consultants will talk you through the completion process.

Additionally, you can choose to have the Mezzanine with one of your lead trustee clients attending. You should include their name and email address on the booking form. Having the lead trustee attend will incur a fee of £60 (£50 plus VAT), which will be automatically charged to your Partner account.

Book your appointment here

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