HMRC has extended the voluntary national insurance contributions (NICs) deadline until 2025. Extending the voluntary NICs deadline until 2025 will give people more time to consider whether paying voluntary contributions is right for them, and also ensures individuals do not miss out on the possibility of boosting their State Pension entitlements. The original deadline was ext ...

HMRC is planning to close its self assessment tax helpline for three months over the summer to focus call centre resources on dealing with other problem calls. All calls to the helpline will be redirected to digital services over the period to give HMRC time to deal with other more urgent phone enquiries. The helpline will be closed for three months from Monday 12 June until ...

Following the Bank of England’s latest increase in the base rate, HMRC has increased both late paid tax and the rate paid on repayments of tax. The Bank increased the base rate to 4.5% from 4.25% on 11 May, the 12the consecutive rise. The late payment and repayment interest rates follow this rise and are applied to the main taxes and duties that HMRC currently charges and pay ...

The number of people paying income tax at 40% or above will reach 7.8 million by 2027/28, according to research published by the Institute for Fiscal Studies (IFS). This represents one in five taxpayers and one in seven of the adult population – a near-quadrupling of the share of adults paying higher rates since the early 1990s, the IFS said. It stated that the six-year freez ...

From the 2023/24 tax year onwards, the self assessment income registration threshold for taxpayers taxed through PAYE only will rise from £100,000 to £150,000. HMRC will issue self assessment “exit letters” as from 2023/24 to those individuals whose income falls below £150,000 for 2022/23 and do not meet any of the other criteria, such as: being in receipt of foreign income ...

The number of self assessment taxpayers filing their tax return on the first day of the tax year has more than doubled since 2018, HMRC has revealed. More than 77,500 customers submitted their tax return for the 2022/23 tax year on 6 April 2023, compared to almost 37,000 customers on 6 April 2018. The deadline to file tax returns for the 2022/23 tax year is 31 January 2024 an ...

The current standard £100 fine for late filing of self assessment tax returns is due to be changed to a points-based system from 2026. HMRC has confirmed that the penalty system will be reformed in a bid to curb abuse of the self assessment system and support taxpayers who make occasional mistakes. The planned penalty reforms for paying tax late will be based on the length of ...

In the recent budget (delivered on 15 March 2023), the Chancellor, Jeremy Hunt, announced a number of measures that are intended to increase “growth” and support efforts to (a) encourage inactive individuals to return to work, in particular those aged 50 and above, and (b) remove incentives to reduce hours or leave the labour market altogether. Of particular interest are the t ...

HMRC has reminded married couples eligible for the Marriage Allowance to make use of the tax relief. Over 2.1 million couples currently benefit from the Allowance, HMRC said. Married couples could save up to £252 a year, it added. Eligible couples are those who are married or in a registered civil partnership; one spouse or partner does not pay income tax, or their income is ...

Directors’ remuneration – with the new financial and tax year starting in April, it is time to consider the best level of salary for you to process for the 2023/24 tax year.