HMRC FAC-01 Return Template Update: New Guidance Issued for Filers

• HMRC updated its FAC-01 return template for reporting fees and commissions on 12 November 2019, which is now mandatory for all statutory submissions.
• Guidance on how to complete the FAC-01 return was released, with the page last updated on 12 November 2019, and the previous example return was removed on 6 April 2018.
• Filers must use the specific MS Excel Spreadsheet provided by HMRC, as no other format will be accepted.
• It is crucial to exclude personal or financial information like National Insurance numbers or credit card details from the FAC-01 spreadsheet.
• Compliance professionals must ensure they use the latest template and adhere to the guidance to avoid non-compliance.

Failure to use the latest version of the FAC-01 spreadsheet or to follow the new FAC-01 guidance could result in incorrect submissions, potential rejections, and ultimately, non-compliance with statutory reporting obligations.

HM Revenue & Customs (HMRC) updated its statutory notice (FAC-01) return template for fees and commissions on 12 November 2019. This crucial change impacts all entities required to submit an FAC-01 return following receipt of a statutory notice. The revised template is now the sole acceptable format for these submissions, emphasizing the need for immediate adoption by all relevant parties.

Accompanying the updated fees commissions return template, HMRC also released FAC-01 guidance detailing the proper procedures for its completion, with the page last updated on 12 November 2019. This comprehensive guidance is designed to assist filers in accurately preparing their submissions, ensuring compliance with current regulatory requirements. The previous example of a completed return, which served as a reference for many, was removed from circulation on 6 April 2018, further underscoring the importance of adhering strictly to the new guidance and template.

The updated FAC-01 spreadsheet is specifically designed for reporting fees and commissions as mandated by a statutory notice from HMRC. It is imperative that all filers utilize this particular MS Excel Spreadsheet, which is approximately 30.5 KB in size, for their submissions. HMRC has explicitly stated that no other format or version of the return will be accepted, making the use of the latest FAC-01 return template non-negotiable for compliance.

To ensure a successful submission, entities must not only use the correct FAC-01 spreadsheet but also follow the prescribed method for sending their statutory return notice to HM Revenue & Customs. The updated guidance provides clear instructions on how to complete FAC-01 return, guiding users through each step. Furthermore, a critical directive from HMRC is the strict prohibition against including any personal or financial information, such as National Insurance numbers or credit card details, within the return to safeguard sensitive data.

The recent HMRC FAC-01 return template update carries significant implications for compliance professionals and their clients. Failure to use the latest version of the FAC-01 spreadsheet or to follow the new FAC-01 guidance could result in incorrect submissions, potential rejections, and ultimately, non-compliance with statutory reporting obligations. This necessitates a thorough review of internal processes to ensure that the most current template and instructions are being used for all fees and commissions reporting.

Given the removal of the previous example return, professionals must rely entirely on the new guidance to accurately complete the updated fees commissions return. This change highlights HMRC's commitment to standardizing the reporting process and improving data accuracy. Staying abreast of these updates is crucial for maintaining regulatory adherence and avoiding potential penalties associated with incorrect or outdated submissions.

Compliance professionals must ensure they and their clients use the latest HMRC FAC-01 return template and adhere to the updated guidance for fees and commissions reporting, as using outdated versions could lead to incorrect submissions and potential non-compliance.

Source: Original reporting via GOV.UK