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 ...

From 1 April 2023 the following changes will apply to tax relief currently given on the purchase of qualifying plant and machinery. 100% Full expensing to replace the 130% super-deduction From 1 April 2023 until 31 March 2026 companies will be able to claim 100% first capital allowances on qualifying plant and machinery additions. There is no limit on the amount that can be ...

Following the Spring 2023 Budget, claimant companies will need to consider the impact of R&D reforms announced last week. Change in relief rates from 1 April 2023 For profitable SMEs, the SME R&D relief rate is changing from 130% to 86%. For loss making SMEs, the repayable SME R&D credit is changing from 14.5% to 10%. For loss making R&D intensive SMEs, the ...

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 ...

The UK narrowly avoided falling into recession in 2022 after the economy saw zero growth between October and December, according to the latest figures from the Office for National Statistics (ONS). Although the economy shrank between July and September, a recession is defined as when the economy contracts for two consecutive three-month periods. Over 2022, GDP grew by 4%, com ...

Companies that own UK residential properties have just one month to revalue and tell HM Revenue and Customs (HMRC) if any are worth more than £500,000. Under the government’s Annual Tax on Enveloped Dwellings (ATED) rules companies must revalue UK residential properties every five years, and 2023 to 2024 is one of those years. The revaluation can be done by the owner or by a ...

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.

The government has launched a consultation on simplifying the UK's research and development (R&D) tax relief system, driving innovation and growing the economy. The consultation runs to 13 March 2023 and sets out proposals on how a single scheme could be designed and implemented. This would replace the two R&D tax relief schemes currently in place – the Research and D ...

HMRC have announced that they are looking closely at landlords operating short-term property lettings, which are typically booked through online property sites such as Airbnb, Booking.com, VRBO and Holiday Lettings. This is in an attempt to “stamp out” what HMRC sees as tax evasion within this sector. HMRC is writing to ‘a small number of customers who might have earned income ...