HMRC has announced that it will be closing its free online service for filing corporation tax returns and company accounts. From next year businesses will now have to pay to file these statutory items. So why the change to these important tax compliance services? Earlier this month, HMRC announced that its online service for filing […]
In the Autumn Budget, Rachel Reeves promised that there would only be one fiscal event each year with no other significant tax changes coming more frequently. So would the Spring Statement offer any surprises? In her Spring Statement on 26th March 2025 the Chancellor Rachel Reeves repeatedly mentioned how the world changes rapidly: economic and […]
If you’re building personal savings, it’s useful to understand at what point you might need to pay tax on your funds. However, recently HMRC has begun to estimate the amount of interest due on your savings and collect it through your tax coding notice. So what do you need to know to avoid paying too […]
The 31 January is deadline day for self-assessment tax returns. And despite the efforts of accountants and individuals the month of January typically involves a last minute scramble for records and receipts. This year, according to data from HMRC, 1.1 million individuals missed the 2023/24 deadline; the same number as last year. The tax […]
HMRC has introduced a new interactive online business tool, alongside clearer guidance for self-employed individuals and those exploring self-employment opportunities. Designed to support new and established sole traders, the free tool provides detailed insights into record-keeping requirements, relevant business taxes and other essential information, such as how to pay tax bills. This could help whether […]
Important – If you are self-employed or in a trading partnership and your accounting year end does not match the tax year (April to March), new annual self-assessment reporting changes will impact you from this tax year.
It’s an interesting question isn’t it. In the UK we’re used to things being relatively cut and dried when it comes to VAT. There is the prevailing rate (currently 20%), zero rated VAT, (0%), VAT exempt (equally 0% but needs to be identified differently to Zero rated) and then the odd few idiosyncrasies such as energy at 5%. But by and large, the overwhelming majority of transactions will be either standard rate, 20%, or zero rated, 0%. That is unless you deal with someone like Amazon, who, it would appear, have been able to agree some of their own rates with HMRC.
Our latest Autumn Tax briefing is now available to download here.
When you split a business to avoid registering for VAT it is called disaggregation and HMRC can perceive this to be deliberate tax avoidance, which carries penalties and could see them treating all the individual businesses as a single entity and taxing them all equally. However, there are legitimate situations whereby disaggregation is acceptable and appropriate.
Following the completion of the latest round of Self-Assessment, HMRC is reported to be looking into undeclared income from short term lettings that it believes should have been included on tax returns in January. Those believed not to have declared income will be sent ‘nudge’ letters.
Back in October 2022, we shared the news that PAYE payments can now be paid to HMRC via Direct Debit in a similar way to VAT payments. But recent reports suggest the system is enduring some teething problems which have resulted in firms receiving incorrect penalties for non or late payment or paying twice to try and avoid penalties.
From October 2022, HMRC is extending the ability for companies to make regular payments via Direct Debit, specifically for PAYE and national insurance contribution liabilities.