Making Tax Digital for Income Tax goes live on 6 April 2026 – supporting the government’s Plan for Change to deliver economic growth
Eligible taxpayers encouraged to sign up to a testing programme now to get ahead of the changes
Digital record-keeping will deliver time-saving benefits for taxpayers
There is less than a year to go until sole traders and landlords with an income over £50,000 will be required to use Making Tax Digital (MTD) for Income Tax.
The launch on 6 April 2026 marks a significant and ultimately time-saving change in how these individuals will need to keep digital records and report their income to HM Revenue and Customs (HMRC).
By keeping digital records throughout the year, sole traders and landlords can save hours previously spent gathering information at tax return time – allowing them to spend more time focusing on their business activities and in turn, driving economic growth as part of our Plan for Change.
Quarterly updates will spread the workload more evenly throughout the year, bring the tax system closer to real-time reporting and help businesses stay on top of their finances and avoid the last-minute rush.
James Murray MP, Exchequer Secretary to the Treasury, said:“MTD for Income Tax is an essential part of our plan to transform the UK’s tax system into one that supports economic growth.
“By modernising how people manage their tax, we’re helping businesses work more efficiently and productively while ensuring everyone pays their fair share.
“This is a crucial step in this government’s decade of national renewal and our Plan for Change, as we clear away barriers that hold back growth.”
Craig Ogilvie, HMRC’s Director of Making Tax Digital, said:“MTD for Income Tax is the most significant change to the Self Assessment regime since its introduction in 1997. It will make it easier for self-employed people and landlords to stay on top of their tax affairs and help ensure they pay the right amount of tax.
“By signing up to our testing programme now, self-employed people and landlords will be able to familiarise themselves with the new process and access dedicated support from our MTD Customer Support Team, before it becomes compulsory next year.”
From April 2026, individuals with qualifying income above £50,000 will need to keep digital records, use MTD-compatible software and submit quarterly summaries of their income and expenses to HMRC. These digital requirements will help businesses save time through more efficient record-keeping, reduce errors in tax calculations, and provide a clearer picture of their tax obligations throughout the year.
Qualifying income includes gross income from self-employment and property before any tax allowances or expenses are deducted. Those with qualifying income above £30,000 will also be required to use MTD for Income Tax from April 2027. The threshold will then decrease to £20,000 from April 2028.
The phased introduction of MTD for Income Tax follows the successful implementation of MTD for VAT, which now helps more than two million businesses reduce errors and save time on their tax affairs. Businesses which joined the MTD for VAT testing phase were better prepared for the move to quarterly reporting.
An independent report published in 2021 found that 69% of mandated businesses experienced at least one benefit from MTD for VAT, while 67% reported that it reduced the potential for mistakes in their record keeping.
HM Revenue and Customs (HMRC) marks its 20th anniversary on 18 April 2025.
Two decades on, the department is harnessing the spirit of then Chancellor Gordon Brown’s bold reforms and embarking on a new era of transformation.
Supporting the government’s Plan for Change and mission for growth, HMRC is now firmly focused on closing the tax gap, modernising and reforming, and improving customer service.
HM Revenue and Customs (HMRC) marked its 20th anniversary yesterday on Friday 18 April 2025.
The department was established in April 2005 through the merger of the Inland Revenue and HM Customs and Excise, combining tax administrations to reduce overlap and enhance service delivery.
The creation of HMRC by the then Chancellor of the Exchequer, Gordon Brown, marked a significant reform in public administration, bringing together both direct and indirect tax collection under one organisation.
Two decades later, HMRC is at the heart of the government’s Plan for Change, dedicated to providing the best possible tax and customs service that drives economic growth, and makes working people better off.
HMRC enforces the National Minimum Wage and National Living Wage to make work pay, putting more money in people’s pockets. And in simplifying life for businesses through cutting red tape and improving digital services, it is helping them to grow the economy.
The new Child Benefit online claim service is also helping put money in new parents’ pockets, more quickly and easily, as well as boosting family finances through HMRC’s delivery of Tax-Free Childcare.
As the government works to deliver economic security and growth for working people, a more effective and digitally focused HMRC will be crucial to delivering a more productive and efficient state.
Key Milestones and Improvements
Over the past two decades, the decision to bring tax and customs together has enabled HMRC to undergo a transformative journey, marked by key milestones that have enhanced its operational efficiency.
Today, nearly every Self Assessment tax return is filed online. The top-rated HMRC app has been downloaded more than 7 million times, and our digital services continue to grow – making it easier for everyone to get their tax right and more difficult for evaders to cheat the system.
The introduction of Making Tax Digital (MTD) for VAT in 2019 has evolved customer interactions with the wider tax system, leading to a substantial increase in online VAT returns. And today, MTD for Income Tax Self Assessment is on the verge of being launched, in a move that will both make life easier for small businesses (sole traders) and tackle non-compliance to help close the tax gap.
HMRC has also reduced the number of its offices from more than 500 two decades ago to just 28 today, as it further reduces its office space in central London. The government is building on this journey of efficiency, as well as reinforcing HMRC’s status as a truly national organisation.
Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive, said:“For 20 years and for centuries before, HMRC and its predecessor organisations have been an integral part of the UK’s fabric.
“With the support of our dedicated tax professionals right across the UK, our impact is far reaching. From tackling complex challenges and catching wrongdoers to implementing a nation-defining program like furlough, our work is pivotal.
“Day in and day out, whether seen or unseen, in the UK and with international co-operation, we collect the money that funds vital public services and provides financial support to those who need it most.”
As HMRC embarks on the next 20 years, the commitment to sustainability and operational efficiency remains a priority. By adopting new technologies, HMRC is focusing on improving customer service and delivery through further system improvements and faster, more user-friendly digital platforms.
HMRC’s journey continues to evolve, benefiting taxpayers, families and the overall efficiency of revenue collection. As HMRC looks to the future, it remains dedicated to providing the best possible tax and customs service, to fully support the UK economy in helping rebuild Britain in a decade of national renewal.
Government’s Help to Save scheme now open to 550,000 more people to help with cost of living
Those saving £50 a month can expect £25 Government top-up, putting more money in people’s pockets
Part of Government’s mission to grow the economy and deliver on Plan for Change
More than half a million more UK savers are in line for Government bonuses worth up to £25 a month to boost their cash pots and help ease rises in the cost of living, HM Revenue and Customs (HMRC) has announced today.
As part of the Government’s mission to grow the economy and improve lives in every corner of the UK and to deliver its Plan for Change, Help to Save is now open to anyone working and receiving Universal Credit – rewarding 550,000 more people.
Its extension to April 2027 means more can benefit from the scheme, which has paid out millions of pounds in bonuses to more than 500,000 people since Help to Save was launched in 2018.
This is evidence of the Government backing the most vulnerable in society with 93% of savers paying in the maximum £50 every month to their Help to Save account.
In Scotland, 36,050 Help to Save savers have paid in a total of £33,584,000 into their accounts, since September 2018.
An account can be set up in less than 5 minutes and easily managed through GOV.UK or the HMRC app, making it accessible to people throughout the UK.
Savers who deposit the maximum amount of £2,400 over four years will receive a bonus totalling £1,200 into their bank accounts, with payments coming at the end of the second and final year.
Economic Secretary Emma Reynolds said: ““Security for working people is at the heart of our Plan for Change.
“We want more people to have a bit in the kitty for a rainy day, which is why we are giving hundreds of thousands more working families on tight budgets access to this support.”
Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Thousands of customers have already benefitted from Help to Save and many more are now eligible to get a great return of 50% on top of their savings, no matter how little you can save each month. Go online or via the HMRC app to find out more and apply today.”
Savers can deposit between £1 and £50 each month earning an extra 50 pence for every £1 saved, with bonuses paid in the second and fourth years of the account being opened. The bonus payment applies to the highest amount saved within the period.
Nearly 18,500 people opened a Help to Save account via the HMRC app in 2024. App users have access to their savings account at their fingertips. They can view their account, check their balance and bonus details, and make a deposit via debit card, bank transfer or standing order.
Money can be withdrawn at any time, although this may affect the 50% bonus payments.
Michelle Highman, Chief Executive of The Money Charity, said:‘We are really pleased to see the Help to Save scheme extended and made available to more people.
“It’s a brilliant way for people to start to save and to build their financial resilience and futures. Saving even just a little each month will help, and the added 50% bonus payment from the Government means that if you are eligible, then it’s a great place to boost your savings.”
HMRC is encouraging working parents to open a Tax-Free Childcare account to save on their childcare costs for the Easter holidays.
Tax-Free Childcare is a UK Government funded top-up scheme for working parents and can be used to pay for approved childcare for children aged 11 or under, or up to 16 years old if the child has a disability. Parents can save up to £2,000 per year per child or £4,000 if their child is disabled. The funds can be used to pay for a before- or after-school clubs, a childminder or an activity club during the holidays.
For every £8 deposited in a Tax-Free Childcare account, the government tops it by £2 which means parents can receive up to £500 (or £1,000 if their child is disabled) every 3 months to help pay their childcare costs.
Latest figures show 34,440 families in Scotland saved thousands on their childcare in December 2024, an increase of nearly 5,000 compared to the previous year.
In December, parents across the UK received a total of £49.7 million in government cash to save on their childcare bills.
Families could be eligible for Tax-Free Childcare if:
they have a child or children aged 11 or under. They stop being eligible on 1 September after their 11th birthday. If their child has a disability, they receive up to £4,000 a year until 1 September after their 16th birthday
the parent and their partner (if they have one) earn, or expect to earn, at least the National Minimum Wage or Living Wage for 16 hours a week, on average
each earn no more than £100,000 per annum
do not receive tax credits, Universal Credit or childcare vouchers
Parents encouraged to claim and manage Child Benefit via the HMRC app
1.2 million parents have used the digital service to claim their Child Benefit
Families who claim Child Benefit will see an increase in their payment next week, says HM Revenue and Customs (HMRC).
From 7 April 2025, parents will receive £26.05 per week – or £1,354.60 a year – for the eldest or only child and £17.25 per week – or £897 a year – for each additional child. Child Benefit is usually paid every 4 weeks and will automatically be paid into a bank account. There is no limit to how many children parents can claim for.
The quickest and easiest way for parents and carers to claim, view and manage Child Benefit payments is by downloading the free and secure HMRC app. A new function in the app means they get a notification once their claim is received and payment in as little as 3 days.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said:“Extra pounds count and Child Benefit can give your household budget a boost.
“Claiming online or managing your Child Benefit payments via the HMRC app is quick and easy so, if you haven’t already, go to GOV.UK to start your claim today.”
Families have used the app more than 6 million times in the last year to manage their Child Benefit payments, including:
making a new claim
updating a change in circumstances
amending personal or bank details
adding additional children to a claim
viewing or printing Proof of Entitlement to Child Benefit
telling us their children are continuing in full time, non-advanced education or approved training
Over 1.2 million parents have claimed their Child Benefit through the HMRC app or via the digital service, since the service went online in May 2023. More than 87% of claims are now digital.
Families are encouraged to claim Child Benefit as soon as they can after their baby is born as it can only be backdated up to 3 months.
To make a claim for Child Benefit, parents will need to create an online HMRC account and will need:
child’s birth or adoption certificate
bank details
National Insurance number for themselves and their partner, if they have one
child’s original birth or adoption certificate and passport or travel document, for children born outside the UK.
HMRC has released a new youtube video explaining how new parents can make a claim.
If either the claimant or their partner has an individual income of between £60,000 and £80,000, the higher earner will be subject to the High Income Child Benefit Charge. For families who fall into this category, the online Child Benefit tax calculator provides an estimate of how much benefit they will receive, and what the charge may be.
In the Spring Statement, Chancellor of the Exchequer, Rachel Reeves announced a new service as part of the government’s Plan for Change, that will cut red tape for eligible employed parents who are liable to the High Income Child Benefit Charge.
From the summer, families will have the option to report their Child Benefit payments and pay the charge directly through their PAYE tax code instead of filing a Self Assessment tax return.
The new digital service will be optional and those who choose to pay the charge through their Self Assessment can continue to do so.
Families who have previously opted out of Child Benefit payments can opt back in and restart their payments quickly and easily online or via the HMRC app.
A person living in a household subject to the High Income Child Benefit Charge will still receive National Insurance credits if they claim Child Benefit but choose to opt out of receiving payments.
Tax admin changes to mean up to 300,000 taxpayers will no longer be required to file a tax return
Easier access to tax relief on temporarily imported fine art and antiques often shown in galleries and exhibitions announced, boosting the sector’s international competitiveness.
UK’s tax minister expected to announce these alongside a raft of other measures to help HMRC deliver Plan for Change through securing tax revenue and creating the conditions for growth in speech later today (11 March)
Up to 300,000 people, including those with side hustles, will no longer need to file a Self-Assessment tax return, tax minister James Murray is expected to announce in a speech later today.
This includes people trading clothes online, dog-walking or gardening on the side, driving a taxi, or creating content online.
As part of a bold new package to transform HMRC into a quicker, fairer and more modern body the minister is expected to announce plans to increase the Income Tax Self Assessment (ITSA) reporting threshold for trading income, from £1,000 to £3,000 gross within this parliament.
This will help deliver the Plan for Change by freeing up time for taxpayers helping to create the conditions for economic growth.
This will benefit around 300,000 taxpayers. An estimated 90,000 of them will have no tax to pay and no reason to report their trading income to HMRC in the future at all. Others will be able to pay any tax they owe through a new simple online service. The changes reflect the government’s commitment to driving forward efficiency reform, a key component of its Plan for Change.
Mr Murray, the minister responsible for HMRC, will announce this reform to tax experts hosted by the Chartered Institute of Taxation and the Institute of Chartered Accountants for England and Wales in a speech to mark the 20th anniversary of HMRC.
He will also detail future simplifications to the government’s Temporary Admission customs procedure, to make this relief for temporary imports easier for a range of sectors to use, including art and antiques, often showcased in exhibitions across the UK.
A new digital pilot with the United States to test ways to speed up trade processes for U.S. and UK businesses is also expected to be announced. This pilot will look to make the communications between HMRC, the U.S. and businesses more seamless through better use of digital credentials and secure real-time data transfers. It will look to make it easier and quicker for businesses to request trade benefits from each country.
Minister Murray will also update on the work HMRC is doing to tackle phoenixism – where company directors go insolvent to avoid tax – as well as announcing a new reward scheme to encourage informants to come forward to HMRC about tax fraud.
Exchequer Secretary to the Treasury James Murray said: “From trading old games to creating content on social media, we are changing the way HMRC works to make it easier for Brits to make the very most of their entrepreneurial spirit.
“Taking hundreds of thousands of people out of filing tax returns means less time filling out forms and more time for them to grow their side-hustle.
“We are going further and faster to overhaul the way HMRC works to make sure it delivers the Plan for Change that will help put more money in people’s pockets.”
Improving HMRC customer services
Since taking office, Murray has been taking teams of senior HMRC officials to meet firms including NatWest, Octopus Energy, Barclays, John Lewis, and Centrica to learn best practice and innovative approaches to modernising and digiting customer service from the private sector.
This includes the use of generative AI and ‘test and learn’ approaches to improving customer service. HMRC is trialling the use of generative AI to point taxpayers to the advice they need on GOV.UK.
In line with practice from banks and other private sector businesses, Murray will announce that HMRC has begun trialling a system where customers can use their voice as their password, to pass security checks faster and more securely.
Following an evaluation of the trial, it is expected to be rolled out across HMRC over the rest of this year. Voice Biometrics strengthen security, safeguard customer data, and reduce call times. Customers’ voice recordings are converted into encrypted biometric data, a voice print, and stored securely in a data centre.
As reforms got underway to automate and digitise its services, HMRC met its target of 85 per cent of calls handled between October and December 2024 and is expected to meet its customer service standards in 2025-26.
As part of this government’s commitment to partner and learn from industry, HMRC will launch a new service to provide an escalation route for agents with Self Assessment and PAYE queries which are over 4 weeks old. A dedicated team of experienced technicians and advisers will adopt a ‘once and done’ approach, taking end-to-end ownership of cases and maintaining regular communication with agents.
Closing the Tax Gap – phoenixism and informants
Since becoming chair of HMRC’s board last year, Exchequer Secretary James Murray has steered the UK tax authority to go further and faster to close the tax gap, in order to raise the revenue required to fund public services and investment projects.
Following the Autumn Budget’s announcement of future work to tackle phoenixism – where rogue directors avoid payment of company tax by going insolvent – Mr Murray will update on the work in his speech. He will lay out how HMRC and the Insolvency Service have agreed a joint plan, which includes an increase to the use of securities, where HMRC asks for upfront payment of tax from new companies, making more rogue directors personally liable for the taxes of their company.
Murray will also announce a new reward scheme for informants to be launched later this year. This will look to target serious non-compliance in large corporates, wealthy individuals, offshore and avoidance schemes. The scheme will take inspiration from the successful US and Canadian ‘whistleblower’ models and will complement the existing HMRC rewards scheme.
Informants could take home a significant amount of compensation. This will be equal to a proportion of the tax take, ensuring that the scheme raises more money that it costs. Work is ongoing within the government regarding what percentage this could be. Further details will be set out in due course.
At the Budget in October, the Chancellor announced an injection of over £1.5bn in HMRC to recruit and fund an additional 5,000 new compliance caseworkers and 1,800 debt collection officers. Minister Murray will announce in his speech that an additional 600 new compliance staff will start work this month. Investment in AI is expected to improve the targeting of compliance work and help make HMRC staff more productive.
This, alongside investment to modernise HMRC systems and legislation to tackle non-compliant tax avoidance and prevent non-compliance will raise £6.5bn per year by 2029/30.
This will help deliver the Plan for Change by securing tax revenue to help fund investment projects to boost growth.
Simplifying Tax Admin and Modernising HMRC
A simple and modern tax and customs system is vital to create the conditions to grow the economy.
Following the commitment in the Autumn to bring forward measures in the Spring to simplify the tax and customs system, the government will today go further to reduce the time businesses spend managing their tax, so they can focus on what matters most to them: growing and being productive.
The minister will announce a future digital pilot with U.S. Customs and Border Protection to test ways to speed up trade processes for UK and U.S. businesses. In 2024, UK-U.S. goods trade was worth a combined £115bn.
The aim is to make supply chains between UK and U.S. businesses more efficient through modernising how HMRC systems, international partners and businesses communicate with each other. The pilot will look to make the communications between HMRC, the U.S. and businesses more seamless through better use of digital credentials and real-time data.
The pilot will include testing the ability to issue and share digital trusted trader credentials between UK and U.S. systems. This would speed up processes for trusted U.S. and UK businesses trading with each other including by making it more easy and efficient to request trade benefits from each country.
Susan S. Thomas, acting Executive Assistant Commissioner of the U.S. CBP’s Office of Trade said: “Modernizing trade processes is essential if we are going to keep pace with today’s trading environment.
“We are taking our operations to the next level, bridging gaps between systems, creating a new era of supply chain transparency and data system flexibility.”
James Murray will announce changes to simplify the tax system. The ITSA trading income reporting threshold will increase from £1,000 to £3,000 gross within this parliament, aligning with the new reporting thresholds for property and “other taxable” income.
This means that up to 300,000 taxpayers will not need to file a tax return. This ranges from people trading vintage clothes, dog-walking or gardening on the side, to driving a taxi or creating content online This will help cut waste, avoid unnecessary worry for customers and improve the conditions needed for them to grow.
Murray will also highlight simplifications to the customs regime to reduce burdens for traders. These include improvements to the Temporary Admission procedure, which relieves import duties for eligible goods that are imported temporarily. For example, the usual time limit for fine art and antiques will increase from 2 to 4 years.
Ellen Milner, Director of Public Policy, Chartered Institute of Taxation said:“We welcome the government’s focus on simplifying the tax system and improving customer service – rightly two key priorities for HMRC as the tax authority heads into its third decade.
“A more straightforward, easy to navigate tax system could free up business owners and managers to focus on growing their businesses, rather than spending their days overcoming bureaucratic hurdles.
“We especially welcome the announcement of a new approach to dealing with slow-moving income tax queries from agents. Hopefully, in due course, this can be expanded to unrepresented taxpayers and to other taxes.”
As Valentine’s Day approaches, anyone who has turned the love for their hobby into a side hustle is being encouraged to ‘put a ring on it’ and make it official.
Whether it’s making extra income from activities such as online content creation, dog walking, or making handcrafted items to sell, HMRC has launched a new Help for Hustles campaign to assist people in understanding if they need to declare their earnings.
Anyone generating more than £1,000 from their side hustle should check their tax obligations using HMRC’s new easy-to-use guide at taxhelpforhustles.campaign.gov.uk.
Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive Officer, said:“We know many people are turning their hobbies and interests into successful businesses and we’re here to help them understand their tax obligations.
“Nobody wants an unexpected tax bill, so anyone with a side hustle should check HMRC’s straightforward guide and make sure they’re getting their tax right.”
The new guide covers five key areas to help people understand any tax obligations:
This only applies to people who are trading or selling services. If someone is simply clearing out their unwanted items and putting them up for sale, they will not need to pay tax.
Undeclared income of more than £1,000 from side hustles form part of the hidden economy. HMRC is committed to reducing the tax gap, of which the hidden economy accounted for about £2.2 billion in 2022/23.
The true cost of tax evasion is likely being vastly underestimated, as loopholes in the current system make it all too easy for fraudulent behaviour to go unchecked. In a report released today, the Public Accounts Committee (PAC) is calling for a clear strategy to tackle tax evasion and increased powers for public bodies to address fraud.
HMRC estimates that tax evasion cost £5.5 billion in lost revenue in 2022-23, 81% of which could be attributed to small businesses. But the introduction of legislation in 2021 making online marketplaces liable for VAT from overseas sellers led to £1.5bn in additional taxes per year, five times greater than HMRC predicted.*
The PAC is therefore concerned HMRC may have underestimated the level of evasion occurring and is calling on HMRC to assess the reasons behind this gap. The report is concerned by the lack of curiosity shown by HMRC to investigate the issue, further noting that its inquiry heard that anywhere between 5% and 20% of UK registered companies were fraudulent in 2023.
Despite the vast sums lost, HMRC does not have a clear objective or strategy to tackle tax evasion. The issue appears to be exacerbated by a lack of collaboration to date between HMRC, Companies House and the Insolvency Service.
The PAC is calling for HMRC to set out a clear strategy for tackling evasion and deliberate non-compliance, while noting that the current planned timeline of five to ten years to tighten company registration requirements is too far in the future.
The introduction of the Economic Crime and Corporate Transparency Act 2023 granted Companies House greater powers to clean up the company register and remove fraudulent information.
With identity verification set to become mandatory by autumn 2025, it is clear steps are being taken in the right direction. But the PAC is concerned measures are not strong enough, as Companies House is still unable to verify addresses of registered companies, which the PAC fear will mean it shall remain all too easy for registrations for fraudulent means to continue.
The PAC was disappointed to learn that HMRC has continued to bombard a taxpayer in Cardiff with letters seeking unpaid tax as a result of businesses fraudulently registering their home address for VAT purposes, despite the Committee having pressed this issue for over a year.
The PAC fear this case unfortunately illustrates a wider issue of HMRC’s VAT registrations processes being far too open to abuse, with the tax authority not exploring options to tighten controls.
The number of prosecutions resulting from HMRC’s criminal investigations reduced from 749 in 2018-19 to 344 in 2023-24. During the same period, the Insolvency Service disqualified just 7 directors for phoenixism.
The PAC notes that it does not appear that the mechanisms in place bear down on tax evaders and rogue directors who flout insolvency rules are being used to their fullest extent.
Sir Geoffrey Clifton-Brown MP, Chair of the Committee, said: “It is of deep concern that the many billions in tax rightfully meant for the public purse could just be the tip of the iceberg.Not only that, but our own tax authority has not sufficiently curious with a view to accurately diagnosing the problem.
“Though we acknowledge the inherent difficulty of the issue, it is clear that more must be done to clamp down on fraud and root out the bad actors who are taking advantage of loopholes in the current system. It is unfair on those who abide by the rules to be undercut by those that are evading their obligations. There has to be a real willingness by those in charge of Companies House to effectively use the powers they’ve been given.
“It is heartening to know that work is being done to implement a more joined up approach across public bodies. However, large roadblocks remain in place that will inevitably slow down progress, and in some cases may stall it completely.
“It is also unclear how successful any effort will be in the absence of a clear strategy with measurable outcomes to tackle tax avoidance. Government needs to get a tighter grip on this issue to prevent further tax funds being lost unnecessarily.”
Only two months left to boost State Pension by filling gaps in National Insurance records from 2006 onwards
Since the launch of the digital service last April, 37,000 people have topped up more than 68,000 years, worth £35 million
People wanting to maximise their State Pension by plugging gaps in their National Insurance record have contributed to a total of 68,673 years, worth £35 million, using the online service since April last year HM Revenue and Customs (HMRC) has revealed.
Analysis of the digital service has shown:
more than 37,000 online payments have been made through the service
65% of the years topped up by customers are from 2017 onwards
the average online top-up payment is £1,835
the largest weekly State Pension increase is £113.76
HMRC and Department for Work and Pensions (DWP) are reminding customers they only have 2 months up until 5 April to check their National Insurance record and fill any gaps from 6 April 2006 onwards.
From 6 April 2025, people will only be able to make voluntary National Insurance contributions for the previous 6 tax years, in line with normal time limits.
The Check your State Pension forecast service on GOV.UK is the quickest and easiest way customers can check what their pension will be in retirement and take action if they need to. People can also use the HMRC app to check their State Pension forecast.
Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive, said:“There are just 2 months left to check and fill any gaps in your National Insurance record from 2006 onwards to boost your State Pension entitlement.
“Don’t delay – it is quick and easy to check your National Insurance record on GOV.UK and it could help your finances in retirement.”
Since the launch of the enhanced digital service in April last year, more than 4.3 million people have used it to check their State Pension forecast.
The end-to-end service means customers can also use it to check and view gaps in their National Insurance record, calculate the difference any payment will make to their State Pension and then make one payment for however many years they need to top up.
Everyone should be aware of the risk of falling victim to scams and should never share their HMRC login details with anyone. HMRC scams advice is available on GOV.UK.
11.5 million file Self Assessment by 31 January deadline
More than 11.5 million taxpayers filed their Self Assessment tax return by midnight on 31 January.
97.36% of tax returns were filed online.
90.53% of expected filers filed their Self Assessment.
More than 11.5 million taxpayers beat the Self Assessment deadline to file their tax return for the 2023 to 2024 tax year by 31 January and avoid a £100 late filing penalty, HM Revenue and Customs (HMRC) can reveal.
The number of people who filed their return on deadline day was 732,498, with the most common time being 16:00 to 16:59 when 58,517 people filed. Thousands left submitting their return until the very last minute when 31,442 filed between 23:00 and 23:59.
HMRC is urging anyone who has missed the deadline to file their tax return now and pay any tax owed. One of the quickest ways to pay is via the free and secure HMRC app. Time to Pay arrangements are available for those who cannot pay their tax bill in full. Late filing and late payment penalties are charged for failure to meet the deadline.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said:“Thank you to the millions of people and agents who filed their Self Assessment tax return and paid any tax owed by 31 January.
“I’m urging anyone who missed the deadline, to submit their return as soon as possible to avoid any further penalties. Search ‘Self Assessment’ on GOV.UK to find out more.”
The penalties for filing a tax return late are:
an initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time
after 3 months, additional daily penalties of £10 per day, up to a maximum of £900
after 6 months, a further penalty of 5% of the tax due or £300, whichever is greater
after 12 months, another 5% or £300 charge, whichever is greater
There are also additional penalties for paying late – 5% of the tax unpaid at 30 days, 6 months and 12 months. Interest will also be charged on any tax paid late.
If someone regularly sells goods or provides services through an online platform, they may need to pay tax on their income.
