HMRC confirms joint and several liability: APSCo responds

Responding to the details in the draft Finance Bill 2025-26, Tania Bowers, Global Public Policy Director for the Association of Professional Staffing Companies (APSCo), told That's Business: “The details published in yesterday’s Finance Bill were generally as expected. 

HMRC has clearly set its sights on preventing tax non-compliance, and fraud via umbrella companies are at the centre of its focus. HMRC has published draft legislation that will be introduced in April 2026 which puts the onus on recruitment firms through joint and several liability for PAYE taxes.

“For recruitment firms, now's the ideal time to prepare for the changes before they come into effect. During the consultation period, a few APSCo members expressed significant concerns around the legal implications, but there was a recognition the legislation would create extra administrative burdens for recruiters that engage umbrella companies.

“In particular, there are concerns as to the level of transparency that will be needed to protect recruitment firms. 

"The guidance soon to be published by HMRC must outline not only its own approach, but also clear information to help staffing companies implement best practice strategies. The details published so far don’t provide recruiters with the additional tools to manage the new requirements; they simply put the responsibility on staffing firms to know the details of their umbrella supply chain, or face financial penalties.

“There are some measures that will help recruiters and umbrella companies, including the specification around the transition phases for directors and the prevention of ‘Phoenixism.’ 

"However, more is required. As APSCo has previously highlighted, licensing of the umbrella market and statutory codes of practice are needed to prevent fraud and equip those that are being tasked with tackling the issue with the appropriate resources to do so.

“The digitalisation of services that has been touted as a means of helping small businesses interact with HMRC is welcome news, though the implementation of this will be no easy task. This needs to be made readily available as soon as possible in order to help staffing firms prepare ahead of the changes to legislation.

“APSCo will continue to leverage its close relationship with HMRC to guide and inform members on the changes during the preparation period ahead of the April implementation.”

UK Tax Tips for Sole Traders Running an Online Shop

Selling online as a sole trader? Here’s what you need to know to stay on the right side of HMRC: And keep more of what you earn.

Registering as a Sole Trader

You must register with HMRC if you earn more than £1,000 in a tax year.

Register via the HMRC website and you’ll be given a Unique Taxpayer Reference (UTR).

Keep Accurate Records

Track all sales, expenses, receipts and mileage.

Use software like QuickBooks, Xero or FreeAgent to stay organised.

Know Your Allowable Expenses

You can deduct:

Platform fees (Etsy/Amazon fees)

Postage and packaging

Marketing costs

Office supplies

A portion of home office costs (electricity, broadband, etc.)

Be Aware of VAT Thresholds

If your turnover exceeds £90,000 (as of 2025), you must register for VAT.

Submit Your Self Assessment

Deadline: 31 January for the previous tax year (paper deadline is earlier).

Penalties apply for late filing or payment.

Self Assessment: online help is just a click or a swipe away

Currently, the most common reason for speaking to an HMRC advisor is about coming out of Self Assessment. 

Customers don’t need to call HMRC and can instead visit GOV.UK to check if they need to send a Self Assessment tax return. 

If they no longer need to send one, they can use the online service to tell HMRC without the need to speak to an advisor.

The 5 most common reasons for calling the helpline are:

I no longer need to complete a Self Assessment tax return

I need to register for Self Assessment

Can you tell me if I still have to complete a tax return?

What’s happening with my Self Assessment registration?

What’s happening with my Self Assessment repayment?

More than 12 million taxpayers are due to complete Self Assessment for the 2023 to 2024 tax year and pay any tax owed by the 31 January 2025 deadline. HMRC’s Self Assessment helpline and webchat services are available for those who need them but there is lots of help available online.

Said: Myrtle Lloyd, HMRC’s Director General for Customer Services:

“We want to help customers get their tax returns right first time which is why we have produced a wealth of online resources and guidance to support them every step of the way. Just search ‘Self Assessment’ on GOV.UK to find out more and start your return today.”

Anyone who is new to Self Assessment needs to register to receive their Unique Taxpayer Reference before they can send a tax return for the 2023 to 2024 tax year.

Taxpayers may need to complete a tax return, even if they pay taxes through PAYE, for example, if they:

are self-employed and have earned gross income over £1,000

are self-employed and earned up to £1,000 and wish to pay Class 2 NICs voluntarily to protect their entitlement to State Pension and certain benefits

are a partner in a business partnership

had a total taxable income of more than £150,000

have received any untaxed income including pension income over £2,500

received income over £1,000 from trading or providing services online

have to pay the High Income Child Benefit charge

received interest from banks and building societies or investments (more than £10,000)

received rental or letting income from UK land and property

HMRC is encouraging customers to be prepared and have all the information they need ready to file their tax returns early, so they can avoid any last-minute stress and know what they owe sooner. HMRC has a range of online help and support and YouTube videos to assist anyone completing their return, including first-time filers.

Criminals use emails, phone calls and texts to try to steal information and money from taxpayers. Before sharing their personal or financial details, people should search ‘HMRC tax scams’ on GOV.UK to access a checklist to help them decide if the contact they have received is a scam

Customers should never share their HMRC login information with anyone. Someone could use them to steal from them or claim benefits or a refund in their name.

HMRC issues tax avoidance warning. Complex offshore tax avoidance scheme revealed

A complex tax avoidance scheme which moves income offshore has been exposed by HM Revenue and Customs (HMRC) today (29 February 2024), with anyone who has joined the arrangement warned to get out of it as quickly as they can.

The scheme, linked to businessman Darren Patrick-Green, involves contractors joining Singapore registered Procorre LLP to avoid paying income tax and National Insurance.

These workers and their Personal Service Companies (PSCs) enter into contracts to provide services to their clients as usual.

The PSCs invoice these clients and transfer the money received to Procorre LLP.

Procorre LLP then deducts a fee before returning the rest of the income to the individuals or their PSCs. This money comprises various forms of payments including bank transfers from multiple sources and pre-paid cards.

These payments should be subject to income tax and National Insurance Contributions and anyone involved in this scheme should contact HMRC as soon as possible and leave the arrangement.

Darren Patrick-Green (also known as Darren Green) is the Ultimate Beneficial Owner (UBO) of Corre Holdings SA (CHSA), a Swiss-based firm which is the majority owner of Procorre LLP. CHSA is also suspected by HMRC of involvement in further arrangements, potentially including the acquisition of users’ PSCs.

Also named on GOV.UK today for being in control of Procorre LLP is Jason Bougourd and Alizeh Nanji.

Jonathan Smith, HMRC’s Director of Counter Avoidance, said: “Tax avoidance schemes are cynically marketed as clever ways to pay less tax. The truth is they rarely work in the way the promoters claim that they will work and it is the users who could end up with unexpected tax bills.

“We are urging anyone who thinks they have entered these schemes to contact us as soon as possible to get help.”

More detail about this scheme can be found on HMRC’s list of named tax avoidance schemes, promoters, enablers and suppliers on GOV.UK. Two other schemes were also named today. https://rb.gy/iixwei

A spokesperson for HMRC said: HMRC is urging taxpayers to be vigilant and to stay away from tax avoidance schemes. The Don’t Get Caught Out campaign reveals the consequences of using tax avoidance schemes which could be unexpected tax bills, interest and penalties."

If anyone has used a tax avoidance scheme promoted by any firm named by HMRC, the HMRC is asking them to please contact HMRC by emailing: CAGetHelpOutOfTaxAvoidance@hmrc.gov.uk as soon as they can.

What’s happening with empty property relief?

The autumn statement should have provided a good platform for the government to have their say on empty property.

The property industry was in uproar as the government debated empty property rates for businesses. The Non-Domestic Rating Bill proposed changes to ensure more transparency, yet many are still sceptical as to its ability to undertake this. 

More recently however, central government and local authorities seem to be focusing their energies on the minority who abuse the empty property rates system. This is instead of ensuring support for the majority is stabilised and simplified.

The autumn statement should have provided a good platform for the government to have their say on empty property. Experts across the board however were reportedly 'disappointed' when they were less than forthcoming. Both on camera, and in writing.

According to the Department for Levelling Up, Housing & Communities, previous consultations suggest businesses are maintaining a minimal occupation period to obtain repeated reliefs. 

As such, the government were reviewing how empty property reliefs should work, if not scrapped altogether. This could have a negative impact on charitable organisations, who often hold vacant properties for use such as aid distribution centres or for retail purposes. 

Historically, they also have zero rates liability (as long as the properties in question are used for charitable purposes). One drawback of such reviews, is many believe it will mean charitable organisations will lose out on empty property relief altogether.

The current economic climate is discouraging investment on a local and national level

Business owners and leaders are unable to invest in their own operations; with few looking to take on additional properties in this high inflation - low growth economy. Many may be eligible for reliefs – such as Retail Hospitality and Leisure (RHL), which has been extended to offer a continued 75% discount to rates payable. 

As business rates are usually in the top four outgoing costs for any business, this generous relief should be allowing commercial property owners and tenants the wiggle room they need to invest. In reality however, it is simply procrastination at work.

Anthony Hughes, Managing Director at RVA Surveyors, was happy to weigh in. “The tricky thing here is balancing between ensuring those in actual need of reliefs have them swiftly applied, compared to the minority who are gaming the system,” Hughes said. 

“Because that doesn’t help anyone. Punishing the many for the actions of a few, is a ridiculous stance to take when business rates have climbed so high. And are set to rise even further for many, when April [2024] comes around.”

What about empty property relief?

Empty properties are eligible for business rates relief for a period of three months. This extends to six months for industrial units (as these are generally recognised as being harder to find tenants for). After this period, a property can't benefit from empty property relief unless the property in question is then occupied for a period of at least six weeks, before it once more becomes vacant.

A Treasury spokesperson said in September: “There are no plans to abolish Empty Property Relief for anyone. While this relief provides important support to landlords with vacant properties, local authorities and previous respondents to consultations have identified it as a significant channel for avoidance activity. The government is therefore seeking views on proposals that aim to balance support for those who require it with the need to tackle abuse.”

One of the latest consultations on empty property business rates focuses on proposals to reduce evasion and avoidance

In Wales, they have already implemented a plan to cut down on those attempting to circumvent paying business rates. The ‘reset period’ (six weeks) required before a property can become vacant and therefore be eligible for the relief once again, has been extended to a minimum of six months. This is one of the proposals considered in the Business Rates Avoidance and Evasion Consultation.

The Local Government Association (LGA) estimated that for 2017/2018, unpaid business rates cost the Treasury £250 million. This was around 1% of the projected total business rates income for that year. The most common way of doing so, was found to be repeated short term occupation of a property. Resulting alone, in an average loss of £396,000 for that tax year. This is but a drop in the ocean when business rates are expected to pull in £24.9 billion for 2023/2024. Government resources would be better prioritised streamlining the business rates system for modern needs.

To learn more visit https://www.rvasurveyors.com

What can businesses expect to hear about inflation in the autumn budget?

In the last few weeks and months, a steady wave of business leaders has written to the government calling on them to scrap the inflation-linked increase expected. 

With the 2023 autumn budget right around the corner (22nd November), this only becomes more relevant for commercial property owners and tenants.

Anthony Hughes, Managing Director at RVA Surveyors, expressed his concerns for the upcoming autumn budget.

“This is something everyone in the rating industry has been following for a while,” Hughes said, “It could quite easily spell disaster for many. Spending is decreasing for businesses and consumers alike. The knock-on effect being that even with the typical spike in holiday trading, this won’t necessarily equate to keeping businesses afloat. Clarity is needed here, and the government need a strong plan going forward that gives businesses the support they need – not a bill worth more than £1.5 billion looming over their heads.”

Kate Nicholls, CEO of UKHospitality said: “The freezing of rates and extended relief could be the ‘lifeline’ needed for the hospitality sector.”

Business rates are often the third or fourth biggest expense for any commercial property owner or tenant. At the beginning of the 2023 revaluation, the average national increase for rateable values (RV) in England and Wales was 7.1%. Now, business rates payers face another increase. One almost as large as the national average increase that came into effect earlier this year; even before the upcoming proposed end date for the Retail Hospitality and Leisure (RHL) relief.

Unchanged inflation means higher costs for businesses

While inflation estimations saw it fall to around 6% for September, it in fact stagnated at 6.7% before dropping to 4.6% for October. This means that the significant rise in business rates predicted for 2024, will be even higher. This inflation, measured against the Consumer Price Index (CPI), indicates to government by how much they should raise business rates by, in the next financial year.

However, this is an unprecedented inflation. Beset by two factors in particular: multipliers are at the currently highest level since they were introduced (1990), and that RHL relief is currently set to end at the same time. The multiplier determines the amount of pence in the pound you pay against your rateable value. It is this figure that projected increases (calculated by CPI) will be directly impacted by.

RHL was expanded to cover 75% of the rates payable per property (up to £110,000) for 2023/2024. This was part of the business support package introduced in the 2022 autumn budget. While not directly influenced by the inflation-linked rise, it is currently set to end at the same time business rates are supposed to increase. With no backup or next stage yet to be announced. The government have been strangely tight-lipped considering. With nothing forthcoming, it leaves business rates payers wondering just what exactly to expect.

UKHospitality has projected that the jump in tax bills paid by pubs, restaurants, and hotels alone will be around £234m. If the expected end of RHL and other support goes ahead as currently predicted, they estimate this will add a further £630m to businesses outgoing costs.

Staying Updated with Tax and Legal Regulations: A Guide for Individuals and Businesses

Tax and legal regulations are constantly evolving, making it crucial for individuals and businesses to stay informed and compliant. 

Ignoring these changes can lead to financial penalties, legal troubles, and missed opportunities for tax savings. 

In this blog post, we'll explore the importance of staying updated with tax and legal regulations, as well as practical strategies to keep yourself informed and compliant. Why Staying Updated is Essential

Avoid Penalties and Legal Troubles:

Failing to comply with tax and legal regulations can result in severe penalties, fines, and even legal actions. Staying updated helps you navigate these regulations to ensure you're not inadvertently violating any laws.

Maximise Tax Savings:

Tax laws change frequently, and staying updated allows you to take advantage of new tax credits, deductions, and incentives. This can lead to significant savings for both individuals and businesses.

Ensure Ethical and Responsible Conduct:

Compliance with tax and legal regulations isn't just about avoiding penalties, it's also a matter of ethics and responsible conduct. Staying informed and following the rules demonstrates a commitment to social responsibility and good corporate citizenship.

Strategies for Staying Updated

Consult with Tax and Legal Professionals:

Engaging tax and legal professionals is one of the most effective ways to stay updated and compliant. They can provide expert guidance and help you navigate complex regulations, ensuring you're on the right side of the law.

Regularly Review Government Websites:

Government websites, such as Customs and Excise and Inland Revenue or the equivalent tax authority in your country, are valuable sources of information. They publish updates, forms, and guides that can help you understand and comply with tax laws.

Subscribe to Newsletters and Updates:

Many tax and legal professionals, as well as government agencies, offer newsletters and email updates. Subscribe to these services to receive timely information about regulatory changes, deadlines, and new opportunities.

Attend Seminars and Workshops:

Seminars and workshops are excellent opportunities to learn about changes in tax and legal regulations. These events are often organised by government agencies, industry associations, and professional organisations and bodies.

Join Industry Associations and Networks:

Industry-specific associations and networks often provide valuable resources and updates related to tax and legal regulations. Joining these organisations can help you connect with like-minded professionals and access important information.

Invest in Tax and Legal Software:

For businesses, investing in tax and legal software can streamline compliance efforts. These tools often come with built-in features for tracking and managing regulatory changes, making it easier to stay updated.

Develop a Compliance Calendar:

Create a compliance calendar that includes key dates for tax filings, legal submissions, and other important deadlines. This calendar can help you stay organized and ensure you never miss a critical date.

Regularly Review Contracts and Agreements:

For businesses, reviewing contracts and agreements with suppliers, employees, and customers is essential. Changes in tax and legal regulations can impact the terms of these contracts, and staying updated can prevent disputes or liabilities.

Staying updated with tax and legal regulations is essential for individuals and businesses alike. By following the strategies mentioned above and keeping a vigilant eye on regulatory changes, you can ensure compliance, minimise financial risks, and make the most of available tax benefits. Remember that in a constantly evolving legal landscape, knowledge is power, and staying informed is a wise investment in your financial and legal well-being.

Top Tools for Small Business Accounting

Accounting is an absolutely vital part of any successful business, regardless of its size. For small businesses, effective financial management is crucial to monitor expenses, track income, and make informed decisions.

 Fortunately, with the advancement of technology, there is an abundance of accounting tools and software available to simplify the process. In this blog post, we'll explore the top tools for small business accounting that can help you streamline your financial operations and keep your business on track.

QuickBooks

QuickBooks is a household name in the world of accounting software, and for good reason. It offers a range of solutions tailored to the needs of small businesses, including QuickBooks Online, QuickBooks Desktop, and QuickBooks Self-Employed. 

These tools allow you to manage expenses, track income, generate reports, and even connect with your bank for real-time transaction updates. QuickBooks is user-friendly and offers various integrations with other software to make accounting and financial management more efficient. https://quickbooks.intuit.com/uk/

FreshBooks

FreshBooks is a cloud-based accounting software designed with small businesses in mind. It offers features such as invoicing, expense tracking, time tracking, and reporting. With FreshBooks, you can easily create professional invoices and accept online payments. It also offers a user-friendly mobile app for managing your finances on the go. https://www.freshbooks.com

Xero

Xero is another cloud-based accounting solution that is gaining popularity among small businesses. It provides a wide range of features, including invoicing, bank reconciliation, expense tracking, and inventory management. Xero's user-friendly interface and collaboration features make it a favourite among small business owners and their accountants. https://www.xero.com/

Wave

If you're looking for a free accounting software option, Wave is an excellent choice. It's a cloud-based platform that offers accounting, invoicing, and receipt scanning tools for small business owners. Wave is especially suitable for freelancers and solo entrepreneurs who want to maintain a tight budget while managing their finances effectively. https://www.waveapps.com/

Zoho Books

Zoho Books is part of the Zoho suite of business tools, and it's a great choice for small businesses seeking a comprehensive accounting solution. It offers features such as invoicing, expense tracking, inventory management, and project management. Zoho Books also integrates seamlessly with other Zoho applications, providing a complete business management solution. https://www.zoho.com/uk/books/

Sage 50cloud

Sage 50cloud (formerly known as Peachtree) is an accounting software designed for small and medium-sized businesses. It offers features like invoicing, expense tracking, and payroll processing. Sage 50cloud can be a solid choice if you need more advanced features and robust reporting for your small business. https://www.sage.com/en-gb/products/sage-50-accounts/

QuickBooks Self-Employed

For freelancers, solopreneurs, and independent contractors, QuickBooks Self-Employed is an excellent tool. It's designed to help you track income and expenses, estimate quarterly taxes, and simplify your financial management as a self-employed professional. https://quickbooks.intuit.com/

ZipBooks

ZipBooks is another free accounting software that provides basic accounting features, including invoicing, expense tracking, and reporting. While it may not offer as many advanced features as some paid options, it's a great choice for start-ups and small businesses looking to manage their finances without a hefty price tag. https://zipbooks.com/

Effective accounting is essential for the success of any small business. Fortunately, there is no shortage of accounting tools and software to choose from, each offering various features and capabilities. When selecting the right tool for your small business, consider your specific needs, budget, and how well the software integrates with your existing systems. By leveraging these top accounting tools, you can streamline your financial operations, save time, and make informed decisions to help your business thrive.

(Image courtesy of Steve Buissinne from Pixabay)

HMRC says: It’s time to register for Self Assessment

HM Revenue and Customs (HMRC) is reminding anyone new to Self Assessment for 2022 to 2023 tax year that they have only two weeks until 5 October to tell HMRC and to register.

New Self Assessment customers could be someone who has set up a side hustle to earn money in addition to their PAYE job or disposed of cryptoassets; they may be newly self-employed or a new landlord renting out property. Whatever the circumstances, if a customer has any income they've not already paid UK tax on, then they must register for Self Assessment.

Customers can use HMRC’s online checking tool on GOV.UK to quickly assess whether they would need to complete a tax return. And they can then employ the step-by-step guide to check what they need to do to file their first Self Assessment tax return.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “If you're new to Self Assessment and unsure how the process works, please do remember, HMRC is here to help you. 

"We have a wealth of resources and guidance available on GOV.UK to help customers register, sign up to the online services and complete their tax returns. We want to help our customers get their tax right first time. So just search ‘Self Assessment’ on GOV.UK to learn more.”

Customers can register for Self Assessment on GOV.UK. They'll then receive their Unique Taxpayer Reference, which they'll require when they complete their return.

The deadline for customers to file their tax return online and pay any tax owed for the 2022 to 2023 tax year is 31 January 2024. And last year, 96% of customers were able to file their return online.

Filing online means customers don’t have to complete it all at once, they can save their progress and finish it later and have the added reassurance HMRC's received their form when they press submit.

HMRC has a wide range of resources to help customers file a tax return including a series of video tutorials on YouTube and help and support guidance on GOV.UK. 

HMRC has produced two videos to help customers registering online for Self Assessment. These videos are for those who are self-employed and those who aren't self-employed.

If customers think they no longer need to complete a Self Assessment tax return for the 2022 to 2023 tax year, they should tell HMRC before the deadline on 31 January 2024 to avoid any potential penalties or needing to complete a tax return. 

HMRC has produced two videos explaining how customers can go online and stop Self Assessment if they are self-employed and those who aren't self-employed.

Customers must also be aware of the risk of falling victim to scams and should never share their HMRC login details with anyone, including a tax agent, should they have one. HMRC scams advice is available on GOV.UK.

You might be considering employing your accountant or an advisor to help you with your self-assessment tax returns. If so, please do be careful. 

These resources will be of potential assistance to you:-

https://taxaid.org.uk/guides/taxpayers/choosing-an-accountant-or-tax-adviser

https://www.natptax.com/Pages/default.aspx

Has the Revaluation Balanced Business Rates?

In March, the Non-Domestic Rating Bill was introduced in the House of Commons. This was the result of a lengthy review into the modernisation of the business rates system. A big component of this new bill is more frequent revaluations. Supposedly, this is to ensure that information on commercial property’s is updated more frequently and is therefore more accurate.

Attempting to modernise the tax system is nothing new. It's a fairly common request among business owners and leaders, and one ratings companies see on a daily basis. One that picks up steam momentarily around a new rating list. 

While shorter periods of time do offer the opportunity to update information more quickly, it is just that – an opportunity to do so. Without swift and dedicated involvement on behalf of the Valuation Office Agency (VOA), a shorter revaluation doesn't immediately offer a solution that fits everyone.

Requiring the relevant knowledge and expertise, which is information held by the VOA, business rates payers cannot challenge their liability without engaging the assistance and expertise of a specialist. 

The amount of time needed alone to take out of running a business to do so, is simply infeasible for many. Let alone having a complex knowledge of the inner workings of the whole business rates tax system"

So, how has the revaluation helped business rates payers?

Currently, the 2023 rating list is set to last for three years. For most, the only difference they'll have noticed is an increase that's simply going to stay elevated. So how has the revaluation helped businesses?

Challenging your business rates liability requires a tremendous amount of expertise. Whilst the VOA have the tools necessary to do so, they don't offer them to business rates payers to help individuals do so.

“We’ve said it before, and we’re going to keep saying it," opined Anthony Hughes, MD at RVA Surveyors, who laughed at the idea/

He went on to say: “Unless each individual commercial property is inspected within the three-year rating list, based on its own merits and unique assets, the information held by the VOA can never be entirely accurate. It's well within their ability to inspect every property within a rating list to ensure accuracy before a new revaluation. They have the manpower; they just need to have the willpower to do so.”

After a tumultuous few years, which saw businesses closing at an alarming rate, a support package for businesses was quickly put into place. Included in this was freezing the multipliers. During Covid, expanded retail relief was renamed Retail Hospitality and Leisure (RHL) which now covers 75% of the rates payable. 

UK Hospitality’s latest analysis predicts that an increase in business rates and the end of such reliefs will see an additional increase of £850 million in the next financial year for those in the hospitality industry alone.

While these have appeared as huge boons for business rates payers, they do come with limitations.

When the sticking plaster is removed, business owners and leaders will still be expected to pay the full liability. Many businesses will run foul and insolvencies will obviously increase. In the second quarter of 2023, there was an over 13% rise in insolvencies compared to the second quarter of 2022.

David Kelly, Head of Insolvency at PwC, said: "The data shows the UK has had the highest quarterly number (6,342) of company insolvencies since the financial crisis in 2009. In total, in the first half of 2023, there were approximately 13,000 corporate failures.”

Due to a crippling economic outlook, many business rates payers are still struggling as people tighten their purse strings. While revaluations offer the opportunity for more accurate and fairer business rates, it's the actions of the VOA and government agencies which will determine what effect it has for business owners and leaders.

https://www.rvasurveyors.com

(Image courtesy of  Peggy from Pixabay)

Do you need to complete a Self Assessment tax return this year?

If someone has had a change in circumstances, then they might need to complete their first ever Self Assessment tax return for the 2022 to 2023 tax year, HM Revenue and Customs (HMRC) is reminding people.

UK Taxpayers can use the quick and easy free online checking tool on GOV.UK and register with HMRC by 5 October if they do need to self-assess. Taxpayers can also use it if they think they may not need to complete one this year, also.

Myrtle Lloyd, who is HMRC’s Director General for Customer Services, said: “It's really important taxpayers check if they should complete a Self Assessment tax return so they can pay the right amount of tax owed and avoid penalties for not filing a return, if required. It's quick and easy to check by using the interactive tool on GOV.UK - there is no need to ring us.”

Taxpayers might need to complete a tax return if they:

Are newly self-employed and have earned over £1,000

Have multiple income sources

Have received any untaxed income, for example earning money for creating online content

Earn over £100,000 a year

Earn income from property that they own and rent out

Are a new partner in a business partnership

Are claiming Child Benefit and they or their partner have an income of over £50,000

Receive interest from banks and building societies (more than £10,000)

Receive dividends in excess of £10,000

Need to pay Capital Gains Tax

Are self-employed and earn under £1,000 but wish to pay Class 2 NICs voluntarily to protect their entitlement to State Pension and certain benefits

The online checking tool can also be used by those who may no longer need to do Self Assessment, including if they:

Gave up work or retired

Are no longer self-employed

Earn below the minimum income thresholds

If taxpayers no longer think they need complete a Self Assessment tax return for the 2022 to 2023 tax year, they should tell HMRC before the deadline on 31 January 2024 to avoid any penalties.

Taxpayers can register for Self Assessment on GOV.UK. Once registered, they'll receive their Unique Taxpayer Reference, which they will need when completing their tax returns.

HMRC has wide range of resources to help taxpayers file a tax return including a series of video tutorials on YouTube and a new step by step guide, for anyone that is filing for the first time.

Taxpayers must be aware of the risk of falling victim to scams and should never share their HMRC login details with anyone, including a tax agent, if they have one. HMRC scams advice is available on GOV.UK.

HMRC points out benefits of early Self Assessment tax filing

Self Assessment customers can help themselves by filing their tax return early

Self Assessment customers could take advantage of four key benefits when filing their tax return early, HM Revenue and Customs (HMRC) has revealed.

The Self Assessment deadline for the 2022 to 2023 tax year is 31 January 2024. Customers who file early will have more control over their financial affairs and beat the January rush.

The four benefits to filing early are:

Planning: find out what you owe for the 2022 to 2023 tax year as soon as you've filed, which allows for more accurate financial planning.

Budgeting: spread the cost of your tax bill with weekly or monthly payments using HMRC’s Budget Payment Plan.

Refund: Check if you’re due a refund in the HMRC app once you’ve filed.

Help: you can access a range of online guidance and information to help you file your return and get help if you're unable to pay your bill in full by the 31 January deadline. You may be able to set up a Time to Pay plan.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Customers who file their tax return early get to see exactly what they owe, so as a result they have more time to budget, thus reducing the stress around Self Assessment.

“Given that January is the busiest month for HMRC’s phone lines, I am strongly urging customers to check out the tips on filing their tax return early on GOV.UK and to consider doing so themselves.”

There is lots of help and support available online:

Customers can access the new online tool to check whether they need to do a Self Assessment tax return.

HMRC’s top tips for filing tax returns early can be found on GOV.UK.

Ask HMRC’s digital assistant to find information about Self Assessment. If they cannot help, chat live with an HMRC webchat adviser.

Access webinars and videos about Self Assessment.

However, HMRC customers should be very aware of the risks of falling victim to phishing scams so must never share their HMRC login details with anyone, including any tax agents, should they have one. HMRC scams advice is available on GOV.UK.

However, please be aware that The Self Assessment helpline is temporarily shut down and will be reopening on 4 September 2023. HMRC point out that about two-thirds of all calls can be resolved by customers themselves online on GOV.UK.

Customers can ask for help from HMRC’s digital assistant or chat with a webchat adviser.

Standard Life reveals less than a third of UK adults know when the tax year ends

Standard Life's 'Financial Efficiency' research reveals that a worryingly large number of people in the UK are at risk of missing the opportunity to capitalise on their ISA tax allowance and their pension contribution limits because they don't know when the tax year ends. The research, which asked a poll of over 2000 people in the UK to say when they thought the end of the tax year was, found that only three in 10 Brits (31%) know the correct date.

The tax year end falls on April 5th, but the majority of the public (69%) either doesn’t know or thinks it's a different date. Some said it was earlier in the year, with one in 12 (8% - more than 4.08 million people) thinking the end of the tax year is April Fool's day.

But more alarmingly, 7.27 million people (15%) of respondents believe their tax deadline falls after April 5th. Even those who already actively save into ISAs can still get it wrong. Only 36% of ISA investors were able to correctly identify the tax year end date and a worrying one in six (17%), thought the tax year end was later than April 5th.

People in Northern Ireland seem to be the most clued up on the tax year-end deadline, with almost two in five (38%) identifying the correct date. While people in Wales were the least aware, with only one in four (25%) people able to correctly identify April 5th as the tax year end.

Standard Life's Julie Russell commented: "Our research shows that few people know when the tax year ends. While more people believe it is before April 5th, each year than after, and that is perhaps less of a worry, it's a real concern that so many ISA investors don’t know when the annual cut off point is for their investments.

"If you are saving into tax efficient savings or investments like ISAs or pensions, then you really do need to know when the tax year ends. The 5th of April should be front of mind. Otherwise you risk not making the most of these products and their valuable allowances."

People can find out more about being financially efficient with investments like pensions and stocks and shares ISAs at www.yourfuturemoney.co.uk which also includes top tips and interactive tools.

No 'Robin Hood' Budget: Over Half Of Brits (53%) Say They Will Be Worse Off

Hopes of a so-called Robin Hood Budget were dashed, as many say the Budget has helped high earners more than low and middle income families, according to new research from uSwitch.com, the independent price comparison and switching service. While a third (36%) say that the Budget helps low and middle income families, many more (70%) believe that high earners got a reprieve. And the elderly appear to have been forgotten - less than one in ten (8%) say that George Osborne has helped pensioners.

It is clear that the Budget Day Blues are setting in - over half of Brits (53%) say they are worse off following Wednesday's Budget[. Far from easing the pressure on squeezed consumers, over half (55%) now feel less confident about their finances - just one in ten (11%) now feel more confident.

But things seem even worse for those in Scotland and Wales as well as the over 65s are feeling the least confident about their finances. Just 8% of those aged over 65 feel more confident about their finances, while 8% of those in Wales and 10% of Scots feel the same. However, the young and those in the South seem to be the Budget winners - 16% of those aged 25 - 34 feel more confident, while 13% of those in the South East and South West are feeling positive.

But despite the lack of confidence, some of the Chancellor's measures were an overwhelming success. The vast majority of Brits (92%) welcome the move to increase the income tax threshold to £9,205 from April 2013, while increasing the stamp duty on £2 million properties has gone down well with more than eight in ten (83%). The changes to how child benefits will be withdrawn - by making the removal gradual and only after consumers earn £50,000 - has pleased almost six in ten (59%) while almost half of Brits (49%) agree with extending Sunday trading hours during the Olympics.

However, the controversial decision to cut the higher rate of tax from 50p to 45p seems to have let many down - almost six in ten (57%) disagree with it, with a third (35%) -strongly disagreeing. It seems that the boost given to high earners has dashed the hopes of a Budget that serves to rob the rich to give to the poor.

However, the Budget has acted as a wakeup call to almost half of Brits (45%) who will use the announcement as an opportunity to review their own finances, while a quarter (25%) plan to cut back on retail spending. And with tax increases hitting fuel and tobacco, 15% will change their personal habits, such as cutting back on smoking and driving in an attempt to save money.

Ann Robinson, Director of Consumer Policy at www.uSwitch.com, said: "Many consumers are feeling the Budget Day Blues following George Osborne's announcement. Three months into another tough year, far from creating a sense of hope and optimism, the Budget has left consumers feeling less confident about their own financial situation. While all workers will be better off following the popular increase to the income tax threshold, many more will feel it doesn't go far enough to combat the rising cost of living and the squeeze on their finances.

"However, it's good news that some households will try to take matters into their own hands by taking the opportunity to review their own Budget, as well as changing habits which could save them money while improving their health.

"This could go some way to helping relieve the pressure on family finances, so I would urge others to join them in reviewing their finances and cutting back on household utility bills where they can. For those worried about tax increases wiping out the extra money they may have gained from the higher income tax threshold, taking time to shop around for the best deals on household bills could save as much as £1,800."

Cambridge-based tax and accountancy specialists expand into Australia

With a steady stream of people moving to Australia from England and vice versa, Websters are pleased to announce the opening of their new offices in Australia.

The purpose of their new Sydney-based office is to advise individuals and businesses who are migrating from the UK to Australia, or from Australia to the UK, on the sometimes quite complicated tax and financial issues that may affect them and their businesses.

In charge of the office he office will be Joanne Lamberth, who is one of Websters’ senior tax consultants, who was originally based in the Cambridge HQ of the firm.

She will be assisted by Dale Winckel, who will be bringing her experience and expertise in sales and marketing to the firm and focusing on further business development.

Websters chose the North Shore, Sydney for their new business as it is a primarily residential area with a high ratio of expat home owners who, they feel, would benefit from their services.

But they point out that with a registered office in the central business district of Sydney, other areas of the city still remain within reach.

Chief Executive, Andrew Webster, who has recently returned from visiting Australia where he has overseen the opening of the new office points out:: “The UK practice has been advising Australian clients from our Cambridge base for the last fifteen years. During the last year, Joanne Lamberth, one of our senior tax consultants, has worked hard to develop this new office and business in Australia.

“Joanne migrated to Australia and chose the North Shore of Sydney as her new family home, so is well versed in the opportunities and issues that UK ‘expats’ will experience. She and Dale will be working alongside our experienced international tax team in Cambridge. We already use this approach very successfully with our office in France. To extend the business and open our first office outside Europe is a really exciting development for Websters.”

Joanne comments: “I have been based in Sydney myself for a while now, so I know from first-hand experience that to give effective advice to clients you need to have not only a detailed knowledge of both countries’ tax systems, but more importantly expertise in how tax systems between countries interrelate. Dale and I bring such expertise to the team and we are looking forward to working together with our clients to expand websters Australia.”

FACTFILE: As well as their Cambridge HQ and their Australian office they also have a presence in France. and France. The firm was founded in 1990 and they offer advice to individuals, businesses and corporations, with, as one would expect, a special emphasis on tax issues including international issues. Their team includes tax consultants, accountants, a solicitor, a company secretary and financial advisers, who work alongside a small team of software developers.

For details of how they might be able to help you, visit www.tax.uk.com

VAT a concern? Not any longer

Top independent VAT and customs duty specialist, The VAT Consultancy, is today launching a new bite-sized programme of specialist webinars. The fast fact sessions will cover a broad range of topics as part of the company’s commitment to providing the latest intelligence in these complex financial arenas.

The webinar program kicked off at 9.30am Thursday 5th May with ‘Managing VAT Cashflows’, a critical topic for businesses of any size and never more important than in the current economic climate. VAT & Customs Director Julie Park will demonstrate how, with good housekeeping in this area, it is possible to add real value to the bottom line.

A second webinar, taking place at 2.00pm on Friday 6th May will look at Managing VAT for Academies, focusing on new rules which were introduced on 1 April 2011. VAT Director and local authority expert, Steve McIntyre will outline the changes, detail what can be claimed, how to do so, and provide tips on how to submit accurate returns.

The VAT Consultancy webinars are free. Register at vat@thevatconsultancy.com

For those unable to attend, a helpline is available via VAT webinar.