HMRC Trust Registration Service: The Deadline is Looming…
Thursday 25th August 2022
In one week’s time, 1 September marks the deadline for trustees to register a wide range of trusts on the Trust Registration Service.
What is the Trust Registration Service (TRS)?
The TRS is a product of anti-money laundering regulations, and its vast reach is vast. It extends to many trusts that may otherwise undertake no reporting with HMRC. The TRS also applies, in some circumstances, to deceased persons’ estates in administration.
Many trustees and personal representatives will be caught out, as the TRS has not been given the necessary publicity by HMRC; certainly by comparison to the PR campaign through which HMRC widely publicises its annual deadline for self-assessment tax reporting. Consequently, many trustees will simply not be aware that the TRS exists, particularly if their trust has no tax reporting obligations. This is particularly alarming as HMRC has signalled that it may issue penalties for non-compliance.
How to prepare for the upcoming registration deadline
If you are a trustee of any type of trust or a personal representative of an ongoing estate, then you should check the latest TRS guidance here. For further information, HMRC’s TRS manual will explain to you if your trust is caught. The link to that manual can be found here.
The importance of carrying out trust reviews
We come across many trusts which are not compliant in one respect or another. It would be sensible to take this opportunity to carry out a general review of your trust, in order to provide peace of mind and minimise the risk of problems arising in the future. We can assist with this.