DAC 6 reporting portal now open: first reporting deadline on 30 January

The portal for DAC 6 reporting to HM Revenue and Customs (HMRC) is now open, with the first reporting deadline falling on 30 January 2021.

This follows the recent changes that we reported, which have significantly reduced the scope of DAC 6 reporting obligations.

By way of reminder, the UK regulations implementing the EU Directive known as DAC 6 require lawyers and other ‘intermediaries’ to report certain cross-border arrangements within scope to HMRC.

Only relevant cross-border arrangements carrying one of the “D hallmarks” within the legislation now need to be reported. Read more about these hallmarks in HMRC's International Exchange of Information Manual.

Reports need to be made by reference to various trigger dates for arrangements:

if the first step in the implementation of a reportable arrangement was taken between 25 June 2018 and 1 July 2020, the arrangement must be reported by 28 February 2021

if the relevant reporting trigger fell between 1 July 2020 and 31 December 2020, the arrangement must be reported by 30 January 2021

if the reporting trigger falls on or after 1 January 2021, the arrangement must be reported within 30 days

Read our piece on DAC 6: Implementing the new EU tax reporting rules in the UK for further background.

Reporting via the new portal

Before you can report using the new portal, you’ll need to register for the service using your organisation’s government gateway credentials.

The user who is registering will need to have an administrator role rather than an assistant role.

You only need to register once, and you do not need to register if you do not anticipate that you will need to make a report.

At the time of writing, HMRC says that you can only report via an XML file upload, but they expect the manual reporting tool to be available shortly.

HMRC has also informed us that where a free text field is mandatory, but the reporting person does not hold the relevant information, the person can enter ‘unknown’ in the relevant field. This is set out in the portal user guide.

However, the date of birth field is not free text, and so a person cannot enter ‘unknown’. If this information is held by the reporting person, it must be provided.

If the reporting person does not hold the information in their knowledge, possession or control, then HMRC tells us they will accept a date of birth of 01/01/1900 as being a proxy for ‘unknown’.

HMRC says they would not charge a penalty for information being filed in this manner if the reporting person did not hold this information.

Read more about the process and the deadlines on the HMRC website

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