HMRC failing on responsiveness, says Charter report blog

Sep 05

HMRC failing on responsiveness, says Charter report

HMRC is failing on the key metrics of responsiveness, ease and accuracy, according to the annual HMRC Charter report. The report reviewed HMRC’s performance against its Charter from April 2023 to March 2024. The survey received over 1,600 responses, with complaints about service levels a recurring theme. ‘Being responsive’ scored the lowest of the Charter […]

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Aug 07

Latest guidance for employers August 2024

HMRC has published the latest issue of the Employer Bulletin. The July issue has information on various topics, including: PAYE Settlement Agreement calculations 2023 to 2024 paying Class 1A National Insurance contributions improving the Self-Serve Time to Pay service for PAYE and VAT customers self assessment threshold change Spotlight 64 – warning for employment agencies […]

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HMRC to send Simple Assessment tax statements to pensioners

HMRC will send Simple Assessment tax statements to pensioners in the next few weeks. The combination of frozen tax thresholds and a substantial increase to the state pension has led to many more pensioners being dragged into paying income tax for the first time. The last government froze the personal allowance at £12,570 until 2028. […]

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British Business Bank launches Growth Guarantee Scheme

The British Business Bank has launched the Growth Guarantee Scheme to help smaller businesses access finance. The Growth Guarantee Scheme is the successor to the Recovery Loan Scheme and is expected to support around 11,000 smaller businesses. The British Business Bank has so far accredited 41 lenders for the scheme which will run until March 2026. […]

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HMRC launches blog

HMRC launches VAT Registration Estimator

HMRC has launched a digital tool to help businesses estimate what registering for VAT may mean for them. The VAT Registration Estimator helps to show businesses when their turnover could require them to register for VAT and its effect on profits. A business must register for VAT if: Total VAT taxable turnover for the previous 12 […]

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chancellor blog

Chancellor takes difficult decisions as Budget date set

Chancellor of the Exchequer Rachel Reeves said she was taking difficult decisions after a Treasury spending audit revealed £22 billion of unfunded pledges. Ms Reeves confirmed that the Autumn Budget will take place on 30 October. In a statement to Parliament, the Chancellor made a number of announcements but said there would be more to come […]

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Jul 16

HMRC has not fined a single enabler of offshore tax evasion

HMRC has not fined a single enabler of offshore tax evasion in five years, data released in response to a Freedom of Information (FOI) request has revealed. This is despite HMRC having landmark powers, which were introduced in 2017, to impose hefty fines. The data, which was released to the Bureau of Investigative Journalism (TBIJ), suggests […]

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Tax gap

Tax gap at record high

The UK’s tax gap estimate rose to a record to £39.8 billion in 2022/23 as small businesses accounted for almost two thirds of unpaid tax, according to HMRC’s data. The tax gap was 4.8%, which is the difference between the amount of tax that should be paid to HMRC and what is actually paid. The tax […]

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file tax return

Jun 10

300,000 file tax returns in the first week of the tax year

Almost 300,000 self-assessment taxpayers filed their return in the first week of the new tax year, HMRC has revealed. The early filers were almost 10 months ahead of the 31 January 2025 deadline. Almost 70,000 people filed their return on the opening day of 6 April this year. HMRC is encouraging people to file early […]

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Retirees report £119,000 shortfall in pension savings

UK adults face a significant shortfall in their pension savings at retirement compared to what they wanted to retire on, according to research from Standard Life. Standard Life’s Retirement Voice Report found that, on average, retirees had hoped to build up a pension pot of £250,000. However, the average amount that they accumulated by retirement […]

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HMRC

Taxpayers spend total of 800 years waiting to speak to HMRC

UK taxpayers spent the equivalent of 800 years on hold to HMRC in 2022/23, according to a report published by the National Audit Office (NAO). The report found that funding pressures, job cuts and a push to reduce costs by encouraging people to manage their tax affairs online had all led to a poor call-handling […]

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HMRC error

HMRC error means self-employed workers could lose out on state pension

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. […]

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build trust blog

Next government will need to build trust between HMRC and self-employed

The next government must take a direct hand in rebuilding trust between HMRC and the self-employed, according to the Association of Independent Professionals and the Self-Employed (IPSE). The call is part of IPSE’s manifesto for the General Election on 4 July. Under its proposals, a Cabinet minister would be charged with directly overseeing the tax […]

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May 07

Latest guidance for employers May 2024

HMRC has published the latest issue of the Employer Bulletin. The March issue has information on various topics, including:   •         PAYE Settlement Agreement payment •         reporting expenses and benefits for the tax year ending 5 April 2024 •         mandating the payrolling of benefits in kind from April 2026 •         PAYE tax calculator •         basis […]

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HMRC launches online voluntary NICs payment service

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 […]

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hmrc clarifies blog

HMRC clarifies tax rules for WFH commuting

HMRC has updated guidance on when tax relief is available on travel expenses for staff who work from home. The tax authority is responding to the growth of flexible or hybrid basis working contracts, particularly since the Covid-19 pandemic. HMRC confirmed that ‘under such arrangements, the employee will have a base office and journeys from […]

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government urged blog

Government urged to implement reforms to R&D tax system

The government is being urged to implement reforms to the Research and Development (R&D) tax relief system in order to avoid hurting small companies by the Suffolk Chamber of Commerce. A report released by the Chamber found that recent changes by HMRC and a ‘wild west’ regulatory system in regard to who can act as […]

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ir53 reforms blog

IR35 reforms taking their toll on skilled contractors

One in ten highly skilled freelancers are currently out of work due to the impact of reforms to IR35 tax legislation, according to research published by the Association of Independent Professionals and the Self-Employed (IPSE). IPSE’s survey of more than 1,300 contractors in highly skilled roles found that 21% are not currently working, with half […]

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mtd for income blog

MTD for Income Tax pilot now live

HMRC’s pilot scheme for Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is now live. Accountants, agents and individuals are able to sign up to the pilot and test the programme out. The pilot aims to assess the MTD for ITSA reporting environment, with an initial focus on those who are self-employed […]

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Apr 08

The National Minimum Wage is the single most successful economic policy in a generation, says think tank

The introduction of the UK’s National Minimum Wage (NMW) in 1999 is the single most successful economic policy in a generation, according to the Resolution Foundation. The NMW has increased the pay of the UK’s lowest paid workers by £6,000 a year compared to their earnings simply rising in line with typical wages, says a […]

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