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 ...
Personal Tax
Pension Tax Limits – Budget Changes
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 urges eligible couples to claim Marriage Allowance
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 ...
Limited Company - 2023/24 Considerations
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.
HMRC targeting Airbnb landlords
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 ...
Bank of England raises interest rates to highest level in 14 years
The Bank of England (BoE) has raised the base rate of interest to the highest level in 14 years. The BoE raised interest rates for the tenth consecutive time on 2 February with a half point increase taking the base rate from 3.5% to 4%. The decision was taken after the Monetary Policy Committee (MPC) voted by a majority of seven to two to increase the base rate by 0.5%. The ...
Auto-enrolment has helped workers save £114 billion into pensions
Workers have saved more than £114 billion into their pension pots since pensions automatic enrolment was implemented ten years ago, according to data published by the Department for Work and Pensions (DWP). The data showed that more than 10.7 million employees were paying into a workplace pension in 2021. The proportion of young people saving into a pension has more than doubl ...
Changes to National Minimum Wage rates 2023/2024
The Department for Work and Pensions has published its annual rate increases for 2023/2024. These changes will take effect in April 2023. The rate for statutory maternity, paternity, adoption, shared parental, and parental bereavement pay will increase to £172.48 per week (previously £156.66). The rate for statutory sick pay will increase to £109.40 per week (previously £99 ...
Persons of significant control (PSCs) - HMRC nudge letters.
HMRC has issued a new round of one-to-many letters aimed at persons of significant control (PSCs) who have declared income of under £100,000 or who have not submitted a tax return.
Mini Budget: Income Tax
The government had previously announced that there would be a cut in the basic rate of income tax, from 20% to 19%, from April 2024. This was to be accelerated so that it took effect from April 2023. However, whilst the government aims to proceed with the cut in due course, this will only take place when economic conditions allow and a change is affordable. The basic rate of in ...
