Individuals often create Trusts for a variety of reasons. Each time a new Trust is created it must be registered with HMRC who will then issue the Trustees with a Unique Taxpayer Reference. This will be needed when dealing with HMRC, including any required tax returns.
The previous registration process involved a paper form 41G(Trust) being completed and posted to HMRC. There can be delays with receiving a response from HMRC due to the sheer number of forms received in the post and the administrative burden this causes.
HMRC are currently in the process of replacing the paper form 41G(Trust) with an online system that will allow people to register and update Trusts all in the same place, without the need to complete any paper forms. This means that HMRC will receive registrations and updates quicker and, in theory, will be able to process them in a timelier manner.
The form 41(G)Trust was withdrawn at the end of April 2017 and HMRC have confirmed that they will no longer process forms received after this date. Unfortunately, the new online service has yet to go live which means there is, at the time of writing, no facility to register new Trusts!
If you would like to speak to someone about the new registration process please contact Marc Dorsett on 01245 228146.
Article researched and published by Lily Measures – Gepp & Sons Private Client Team