HM Revenue and Customs (HMRC) has confirmed that the UK is taking up an optional six-month deferral to the DAC-6 reporting requirements.

The requirements were originally due to come into force on 1 July.

On 24 June 2020, the EU Council announced that it has adopted an amending directive to DAC 6 providing an optional six-month delay to the reporting deadlines, due to the disruption caused by the pandemic.

The government will amend the UK regulations implementing DAC 6 to give effect to the delay.

It is possible that the EU Council can agree to one further extension of three months.

What does this mean for solicitors?

Changes to HMRC’s international manual explain how the deferral will work in practice. HMRC also plans to publish wider DAC 6 guidance.

HMRC has confirmed that it will not take action for non-reporting during the period between 1 July and the date when amended regulations come into force, so that there is no expectation that reports will be made in July.

However, the reporting deadlines are delayed, not cancelled.

The optional nature of the deferral could cause confusion or complexity, so we encourage law firms to continue preparing for DAC 6 compliance.