Personal Tax

An HMRC error could mean that some low-income, self-employed workers lose out on their entitlement to National Insurance-related benefits like the state pension, warns the Low Incomes Tax Reform Group (LITRG). The issue centres around the payment of voluntary Class 2 National Insurance contributions (NICs) that can be made by self-employed taxpayers with profits under £6,725. ...

HMRC has launched a new online voluntary NICs payment service. The government says the new service will make it easier for customers to check for and fill any gaps in their National Insurance record to help increase their State Pension. It also said that the new Check your State Pension service has been enhanced to include an end-to-end digital solution. The service shows cu ...

HMRC is warning people to be wary of bogus tax refund offers following the self assessment deadline on 31 January. The tax authority says that fraudsters could set their sights on self assessment taxpayers, with more than 11.5 million submitting a tax return by last month's deadline. HMRC warns that taxpayers who completed their tax return for the 2022/23 tax year by the 31 J ...

HM Revenue and Customs (HMRC) has released a “tax simplification” update confirming that the reporting and paying of income tax and class 1A national insurance contributions (NIC) on benefits-in-kind (BIK) via payroll software will become mandatory from April 2026. This follows the changes made during the 2022/23 reporting season whereby amendments to P11Ds had to be completed ...

Are you a director of a limited company? If yes, you should check if you are required to register for Self-Assessment and if your personal tax return includes the relevant income from your company, along with other income you have received in the year. Who should apply for Self-Assessment? Company Directors are required to file Self-Assessment Tax Returns if the following ap ...

Financial gifts can make a huge difference for children and grandchildren but care needs to be taken to ensure they are carried out tax efficiently.

Lifetime gifting could include making cash gifts from surplus income, charitable giving and taking advantage of annual exemptions and the small gifts exemption.

Self assessment taxpayers must be on the lookout for scam texts, emails and phone calls from fraudsters, HMRC was warned. HMRC has received more than 130,000 reports about tax scams in the past year, with 58,000 of those offering fake tax rebates. With around 12 million people expected to submit a self assessment tax return for the 2022/23 tax year before the 31 January 2024 ...

The frozen Savings Allowance combined with rising interest rates will push over one million taxpayers into paying tax on their savings this tax year, according to research by investment platform AJ Bell. In the 2023/24 tax year it is estimated that over 2.7 million individuals will pay tax on interest, up by a million in a year. This year's predicted total includes nearly 1.4 ...

HMRC has increased interest rates with late payment bills charged 7.5% from 11 July, the highest rate since 2001. The move follows the Bank of England's June increase in the base rate with HMRC also increasing the rate paid on repayments of tax. The Bank increased the base rate to 5% from 4.5% on 22 June, the 13th consecutive rise. The late payment and repayment interest rat ...

Almost a million young people have yet to access savings contained in Child Trust Funds (CTFs), according to a report by Parliament’s Public Accounts Committee (PAC). The PAC said over £1.7 billion is waiting to be claimed by a million young adults, at an average value of £1,900 each. It says ‘failure in long-term planning’ by HMRC means 42% of eligible 18-20-year-olds have n ...