Category: Tax

The Bank of England (BoE) has raised its interest rate by 0.5% to 4% following a monetary policy committee (MPC) meeting on 2 February. This is the tenth consecutive time the Bank has increased interest rates, resulting in the highest base rate in 14 years. The MPC voted by a majority of 7-2 to increase … Continued

MPs are demanding urgent improvements to HMRC’s “unacceptable service standards” after a parliamentary report discovered an “eye-watering” £42 billion is owed to HMRC from unpaid tax. The report also highlighted a dramatic drop in HMRC staffing levels, with 6,000 employees being cut over the past five years. Dame Meg Hillier, chair of the committee, said: … Continued

HMRC is inviting people to comment on draft guidance relating to the upcoming R&D tax credit relief reforms. The reforms, expected to be implemented from 1 April 2023, will change how R&D works in practice and set out additional information requirements when applying for the relief. Anyone wishing to comment can do so until 28 … Continued

The Treasury has confirmed that Making Tax Digital for income tax self-assessment (MTD for ITSA) will be delayed a further two years until April 2026. According to First Secretary to the Treasury Victoria Atkins, this phased approach will give businesses more time to prepare and adapt to new ways of working. The minimum reporting level … Continued

Chancellor Jeremy Hunt announced several measures in this year’s Autumn Statement in an attempt to plug the £55 billion ‘black hole’ in public finances. The statement, delivered to the House of Commons on 17 November, included several tax threshold freezes and cuts in annual allowances. One of the most important changes was the announcement that … Continued

HMRC is reminding taxpayers to declare their self-employed income support scheme (SEISS) payments in their self-assessment return for the 2021/22 tax year. The Government paid SEISS grants to eligible businesses adversely affected by the Covid-19 pandemic, with over 2.9 million people claiming at least one SEISS payment in the 2021/22 tax year. The grants are … Continued

HMRC has announced that penalties will be issued to those not completing VAT returns through Making Tax Digital (MTD) from 1 November 2022. Anyone who files a VAT return via a non-electric submission will face penalties of up to £400. These changes will apply to VAT customers for accounting periods on or after 1 April … Continued

The additional tax rate has been scrapped completely by the new Chancellor. Kwasi Kwarteng has announced the biggest bundle of tax cuts since 1972 in his first fiscal statement as Chancellor. Income tax, corporation tax and stamp duty make up the majority of the most significant cuts in a bid to promote growth within the … Continued

The Government has announced plans to relax capital gains tax (CGT) rules in divorce settlements, giving spouses and civil partners more time to transfer assets without incurring CGT charges. If the new rules are approved, they will come into effect from 6 April 2023. Newly separated couples are currently given until the end of the … Continued

Self-employed individuals are having difficulties completing their self-assessment tax return, according to a new report commissioned by HMRC. A lot of people have trouble with their tax reporting duties because of “confusing terminology, ambiguity around allowable business expenses and uncertainty transferring figures to HMRC’s system,” according to the report. Undertaken by Kantar on behalf of … Continued