In my blog on 21 February 2022 I highlighted the fact that the date for trusts to register with HMRC was fast approaching. In the majority of cases the deadline will be 1 September 2022, but refer to my previous blog for more information.
Whilst not all trusts will be required to register, HMRC estimated that some one million trusts would need to under the new money laundering requirements.
A freedom of information request by Canada Life suggests that, based on the number of trusts currently registered, almost 170,000 trusts will need to register each month between now and the deadline.
We all know that when there are spikes in usage of a website, it can cause problems. There are usually issues accessing the website, problems entering information or being kicked out part way through the process.
As the existing trust register is relatively new and given the likely level of trusts still needing to register, I would strongly recommend trustees to either register the trust now or appoint someone to register the trust on their behalf. Please do not leave it until the last minute, not just because of the possible IT issues but also to allow time to collate the information that is needed to register the trust, which may not be readily available.
Penalties can be charged where a trust is not registered by the relevant date. We understand that in the first year HMRC may take a lighter approach to charging penalties as long as the trustees can show that they tried their best to register the trust by the relevant deadline, however this has not actually been confirmed by HMRC.