Tag: HMRC

 It’s a Self Assessment wrap for 40,000 festive filers

  • 4,409 Self Assessment customers completed their tax return on Christmas Day 
  • 40,072 filed their tax return over the Christmas break 
  • Customers encouraged to prepare and file their tax return ahead of January deadline

More than 4,400 Self Assessment customers avoided peeling the sprouts to file their tax return online on Christmas Day, HM Revenue and Customs (HMRC) can reveal. 

In total, 40,072 customers – as well as spending the three-day holiday indulging in usual Christmas pastimes of eating, drinking and watching festive favourites on the TV – found time to go online and wrap up their 2023 to 2024 tax return, well ahead of the 31 January deadline. 

Festive filing statistics show that over Christmas Eve, Christmas Day and Boxing Day: 

  • 15:00 to 15:59 proved to be the most popular time to file on the big day itself, with 368 filing their return  
  • 11,932 customers missed out on leftovers for lunch, submitting their tax return on Boxing Day, with the most popular time being 16:00 to 16:59 and 1,108 filing during that time. 
  • 23,731 filed on Christmas Eve instead of last-minute shopping and wrapping. The most popular time was 11:00 to 11:59 when 3,458 filed their tax return 

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “People who need to file a Self Assessment return and already have, can enjoy the rest of the festive period knowing they’ve got it wrapped up for another year, and can enjoy singing Auld Lang Syne knowing their tax affairs are in order.

“For those who haven’t started yet, our online service is available 365 days a year so there’s still a chance to get it done before 2024 is out! Go to GOV.UK and search ‘Self Assessment’ to access the online help and start today.” 

Customers who have already submitted their tax return online have until the 31 January 2025 to pay the tax they owe. Those who file before 30 December may have the option of paying any tax owed through their PAYE tax code.    

The quickest and easiest way to pay a Self Assessment tax bill is via the HMRC app. For a full list of ways to pay, visit GOV.UK. 

For anyone who is yet to start their Self Assessment, there’s plenty of  information and guidance online, including YouTube videos, to help people complete their return. 

Anyone who regularly sells goods or provides a service through an online platform can find out more about  selling online and paying taxes on GOV.UK. The information will help them decide if their activity should be treated as a trade and if they need to complete a Self Assessment tax return. 

You may need to file a return if you:

  • are newly self-employed and have earned gross income over £1,000
  • earned below £1,000 and wish to pay Class 2 National Insurance Contributions voluntarily to protect their entitlement to State Pension and certain benefits
  • are a new partner in a business partnership
  • have received any untaxed income over £2,500
  • receive Child Benefit payments and need to pay the High Income Child Benefit Charge because they or their partner earned more than £50,000

Criminals use emails, phone calls and texts to try to steal information and money from taxpayers. Customers can find more information on how to identify a scam and access a checklist to help them decide if the contact they have received is a scam, on GOV.UK 

Working this Christmas? Check your pay!

Festive workers, including those on short-term contracts, are being urged to check their pay to make sure they aren’t missing out on the National Minimum Wage or National Living Wage.

Seasonal staff and students employed over the Christmas period are legally entitled to receive at least the same minimum rates as other workers.

HM Revenue and Customs (HMRC) is reminding all workers to check their hourly rate of pay, and to look out for unpaid working time – such as time spent cleaning and closing premises, training, or picking up extra hours. 

Deductions, for things like uniforms or tools, can also reduce pay rates. 

HMRC’s festive video issues a clear reminder: 

“Have you started a Christmas job? 

“No matter how long you’ve been employed for, you are legally entitled to be paid at least the National Minimum Wage. This includes temporary seasonal staff working in shops, hotels, garden centres, Christmas markets, restaurants and warehouses.

“Always make sure that you check your pay and look out for any deductions, or unpaid working time that could take you below the minimum wage.

“If you think you’ve been short changed, even if you no longer work for that employer, we’re here to help. Visit GOV.UK and search ‘check your pay’ to find all the information you need about wage rates, and how to report your employer if they’re not paying you correctly.”

The National Minimum Wage hourly rates are currently:

  • £11.44 – Age 21 and over (National Living Wage)
  • £8.60 – Age 18 to 20
  • £6.40 – Age under 18
  • £6.40 – Apprentice

Anyone not being paid what they are entitled to, or people concerned that someone they know may not be getting paid correctly, can report it online at https://www.gov.uk/minimum-wage-complaint. It takes around 10 minutes and reports can be made after the employment has ended. 

To speak with someone, raise a concern or get further information, phone the Acas Pay and Work Rights helpline on 0300 123 1100 for confidential, free advice (Monday to Friday*, 8am to 6pm).– *Except Bank Holidays. 

Employers can also access support at any time to ensure they are paying their workers correctly:

They can also contact Acas for advice.

Festive finances: Budget for Christmas and spread the cost of tax bills

  • Self Assessment customers unable to pay their tax bill in full by 31 January 2025 can spread the cost using HMRC’s online Time to Pay system 
  • Time to Pay plans support those who cannot pay their tax bills on time by arranging regular monthly payments in return for avoiding any further late payment penalties  
  • Online payment plans can be set up for tax bills up to £30,000, without the need to contact HMRC directly

With Christmas preparations well underway in many households, considering financial commitments may be on the agenda. So HMRC is reminding people who pay tax by Self Assessment of the opportunity to spread the cost of their bill. 

More than 15,000 Self Assessment customers have already set up a Time to Pay payment plan for the 2023 to 2024 tax year to help spread the cost, and there is still an opportunity to sign up for such an arrangement.  

HM Revenue and Customs (HMRC) offers these payment plans to support customers unable to pay their tax bill in full and looking to manage their tax payments over regular monthly instalments.

The online deadline to file a tax return for the 2023 to 2024 tax year and pay any tax owed is 31 January 2025. Anyone who is unable to pay their tax bill in full, owes less than £30,000 and is eligible, can quickly and easily apply online without the need to contact HMRC directly. Those that owe more than £30,000 are still able to apply but would need to contact HMRC. 

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “We’re here to help customers get their tax right and if you are worried about how to pay your Self Assessment bill, help and support is available.

“Customers can set up their online payment plan to suit their own financial circumstances and can spread those payments across a maximum of 12 months. It is a valuable option for someone needing extra flexibility in meeting their tax obligations.”

Taxpayers must file their Self Assessment tax return before setting up a Time to Pay arrangement.  

There are many ways in which people can pay their Self Assessment tax bill, including paying through the free and secure HMRC app or online at GOV.UK. A full list of payment options can be found on GOV.UK. There is also a video on YouTube that explains a customer’s Self Assessment tax bill and the different ways to pay. 

HMRC is encouraging people to be prepared and have all the information they need ready to file their Self Assessment 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. 

Customers setting up a time to pay arrangement need to budget accordingly to ensure that regular monthly payments can be made. Any missed payment will incur interest as well as a penalty. 

HMRC recommends that anyone who regularly sell goods or provides a service through an online platform to find out more about selling online and paying taxes. The information on GOV.UK will help them decide if their activity should be treated as a trade and if they need to complete a Self Assessment tax return. 

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   

People 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. 

Simple Assessment 

HMRC is also reminding anyone who received a Simple Assessment letter that the deadline to pay any tax owed is 31 January 2025. Simple Assessment customers do not need to register and complete a tax return. 

Simple Assessment letters were issued to those who have unpaid Income Tax from the 2023 to 2024 tax year that cannot be collected via Pay as You Earn (PAYE) – by an employer or pension provider. 

Customers who receive a Simple Assessment on or after 31 October 2024 for tax owed during 2023 to 2024 tax year will have 3 months from the date of their assessment to pay their tax bill. 

Both Self Assessment and Simple Assessment payments can be made in full, or in smaller amounts if the balance is cleared before the deadline. Payments can be made on GOV.UK or through the HMRC app. 

No tax changes for online sellers

  • Online platforms to start sharing some user sales and personal data with HMRC from January 2025
  • HMRC confirms there are no changes to tax rules for people selling their unwanted possessions online
  • Guidance for sellers can be found on GOV.UK

People selling unwanted items online can continue to do so with confidence and without any new tax obligations, HM Revenue and Customs (HMRC) has confirmed.

The reminder comes as online platforms start sharing sales data with HMRC from January 2025 – a new process that, when announced last year, generated inaccurate claims that a new tax was being introduced. 

But whether selling last year’s festive jumper, getting some money back for a child’s outgrown baby clothes, or quietly offloading an unwanted Christmas present or two – absolutely nothing has changed for online sellers. 

For anyone who is unsure if their additional income could be taxable just search ‘online platform income’ on GOV.UK to use HMRC’s free online tool or download the HMRC app and go to the ‘news’ section under the ‘communication’ tab for more information.

Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive Officer, said: “We cannot be clearer – if you are not trading and just occasionally sell unwanted items online – there is no tax due.

“As has always been the case, some people who are trading through websites or selling services online may need to be paying tax and registering for Self Assessment.”

The new reporting requirements for digital platforms came into effect at the start of 2024. It is not a new tax and whether people are selling personal items on eBay, renting homes out on Airbnb or delivering takeaways through Just Eat – no tax rules have changed. 

Those who sold at least 30 items or earned roughly £1,700 (equivalent to €2,000), or provided a paid-for service, on a website or app in 2024 will be contacted by the digital platform in January to say their sales data and some personal information will be sent to HMRC due to new legal obligations.

The sharing of sales data does not automatically mean the individual needs to complete a tax return.

However, those who may need to register for Self Assessment and pay tax, include those who:

  • buy goods for resale or make goods with the intention of selling them for a profit 
  • offer a service through a digital platform – such as being a delivery driver or letting out a holiday home through a website
  • AND generate a total income from trading or providing services online of more than £1,000 before deducting expenses in any tax year

HMRC wants to help people get their tax right. Anyone unsure whether to complete a Self Assessment tax return for the 2023 to 2024 tax year or not, can check on GOV.UK. If new to Self Assessment, they can register on GOV.UK.

HMRC is working alongside online platforms to ensure sellers receive clear guidance on their tax responsibilities.

On your marks – less than 100 days to file Self Assessment 

  • People have until 31 January deadline to file their Self Assessment tax return and pay tax owed 
  • Self Assessment customers urged to prepare and file their tax return early

The countdown clock has begun as HM Revenue and Customs (HMRC) reminds customers they have 100 days to file and pay their Self Assessment tax return before the 31 January deadline.

Anyone who is yet to start, can access information and guidance on GOV.UK to help them complete their tax return.

More than 3.5 million have already beaten the clock and submitted their returns. HMRC is reminding others that starting their Self Assessment early means they are more likely to complete an accurate tax return, avoid any last-minute panic plus they will know what they owe sooner and can budget.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “The countdown to the Self Assessment deadline has begun but there is still time to thoroughly prepare and file an accurate tax return by 31 January.

You can access online help and support to help you file. Search ‘help with Self Assessment’ on GOV.UK to find out more.”

More than 12 million people need to file a tax return for the 2023 to 2024 tax year and pay any tax owed by the 31 January 2025 deadline. 

HMRC has produced a series of  YouTube videos to help people complete their return and a step-by-step guide to check what customers need to do to file their first tax return.   

Customers who are unsure if they need to file a tax return can visit GOV.UK to check if they need to send a Self Assessment tax return. 

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.

People who no longer need to file a tax return should tell HMRC as soon as possible to avoid any penalties. HMRC has produced 2 videos explaining how customers can go online and stop Self Assessment if they are self-employed and those who are not self-employed. 

HMRC recommends that anyone who regularly sell goods or provides a service through an online platform to find out more about selling online and paying taxes. The information on GOV.UK will help them decide if their activity should be treated as a trade and if they need to complete a Self Assessment tax return.

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

People 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.

Police lead day of action to tackle human trafficking and modern slavery

Police Scotland led a multi-agency day of action in Kirkcaldy in relation to an ongoing human trafficking and modern slavery investigation.

One male aged 18 was arrested for human trafficking and modern slavery offences and has been released pending further enquiry.

A 52-year-old woman and a 46-year-old man were arrested for immigration offences and enquiries are ongoing.

Officers visited a business in the area on the morning of Thursday, 10 October, 2024, following intelligence received.

Representatives from Her Majesty’s Revenue and Customs (HMRC), Department for Work and Pensions (DWP), the Gangmasters and Labour Exploitation Authority (GLAA) and Justice and Care were also in attendance.

Detective Inspector Scott Wilson from Dumfries CID said: “Human trafficking and modern slavery are happening in our communities and this operation demonstrates our commitment to tackling this issue.

“We work closely with our partners to identify situations where this criminality is taking place and provide appropriate support to victims. However we cannot do this alone, and it is important that we increase awareness of the warning signs so that reporting can increase.

“Signs that someone could be being exploited at work can include being paid no legal wage and having little or no money, living in poor conditions and having their time on and off duty controlled by their employers.

“If you suspect modern slavery is happening in your community it is vital that you report this and enable us to protect victims and take action against those responsible for this exploitation.”

Anyone with information can contact Police Scotland on 101 or Crimestoppers anonymously on 0800 555 111.

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

Self Assessment customers urged to use online guidance as top 5 calls to helpline revealed

  • HMRC reveals the most common calls to its Self Assessment helpline, all of which can be answered quickly online
  • Customers can access help online to register for Self Assessment or tell HMRC they no longer need to complete a tax return
  • Anyone new to Self Assessment can register using the quick and easy tool on GOV.UK

HM Revenue and Customs (HMRC) reveals the top 5 reasons why people are calling the Self Assessment helpline and reminds them that they can self-serve to quickly access the information online.

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:

  1. I no longer need to complete a Self Assessment tax return
  2. I need to register for Self Assessment
  3. Can you tell me if I still have to complete a tax return?
  4. What’s happening with my Self Assessment registration?
  5. 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.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “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.

More information on Self Assessment

10,000 boost State Pension with online payments

  • Individuals have less than 6 months to fill any gaps in their National Insurance records from 2006 onwards to maximise their State Pension
  • Thousands have topped up their National Insurance record using the government’s online service
  • Government encourages people to act now and check their National Insurance record

More than 10,000 payments worth £12.5 million have been made through the new digital service to boost people’s State Pension since it launched in April 2024, HM Revenue and Customs (HMRC) has revealed.

People have until 5 April 2025 to maximise their State Pension by making voluntary National Insurance contributions to fill any gaps in their NI record between 6 April 2006 and 5 April 2018.

HMRC and Department for Work and Pensions (DWP) are encouraging people to act now and use the Check your State Pension forecast tool on GOV.UK to see if they can increase their retirement income.

The service enables people to check if they have gaps in their National Insurance (NI) record, calculate if making a payment would increase their State Pension, and then make a payment if they wish to do so.

Further analysis of the use of the online service shows:

  • the majority of customers (51%) topped up one year of their NI record
  • the average online payment is £1,193
  • the largest weekly State Pension increase is £107.44

After the 5 April 2025 deadline, people will only be able to make voluntary contributions for the previous 6 tax years, in line with normal time limits.

Since its launch in April, 3.7 million people have used the online checking tool on GOV.UK to view their State Pension forecast.

Emma Reynolds, Minister for Pensions, said: “We want pensioners of today and tomorrow to enjoy the dignity and support they deserve in retirement.

“That’s why I urge everyone to check if they could benefit by filling gaps before the deadline passes. Using our online tool means only a few clicks could make a huge difference to your future.”

Customers can use the Check your State Pension forecast tool by logging into their online account or via the free and secure HMRC app. Those without an online HMRC account can register on GOV.UK.

HMRC app users can see their pension details at their fingertips including their current potential retirement date as well as annual, monthly and weekly forecasts as well as checking their NI record.

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.

More information on voluntary NI contributions

HMRC: 671,000 young people urged to cash in their government savings pot

  • Young people urged to claim their Child Trust Fund
  • £2,200 on average waiting in unclaimed accounts

More than 670,000 18-22 year olds yet to claim their Child Trust Fund are reminded to cash in their stash as HM Revenue and Customs (HMRC) reveals the average savings pot is worth £2,212.

Child Trust Funds are long term, tax-free savings accounts which were set up, with the government depositing £250, for every child born between 1 September 2002 and 2 January 2011. Young people can take control of their Child Trust Fund at 16 and withdraw funds when they turn 18 and the account matures.

The savings are not held by government but are held in banks, building societies or other saving providers. The money stays in the account until it’s withdrawn or re-invested.

If teenagers or their parents and guardians already know who their Child Trust Fund provider is, they can contact them directly. If they do not know where their account is, they can use the online tool on GOV.UK to find out their Child Trust Fund provider. Young people will need their National Insurance number – which can be found easily using the HMRC App –  and their date of birth to access the information.

Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive, said: “Thousands of Child Trust Fund accounts are sitting unclaimed – we want to reunite young people with their money and we’re making the process as simple as possible. 

“You don’t need to pay anyone to find your Child Trust Fund for you, locate yours today by searching ‘find your Child Trust Fund’ on GOV.UK.”

Third-party agents are advertising their services offering to search for Child Trust Funds and agents will always charge – with one charging up to £350 or 25% of the value of the savings account.

Using an agent can significantly reduce the amount received; is likely to take longer and customers still need to supply them with the same information they need to do the search themselves.

Gavin Oldham from The Share Foundation said: “If you are 18-21 years old, the government would have put money aside for you shortly after birth.

“This investment would have grown quite a bit and it’s in your name. The Share Foundation has linked over 65,000 young people to their Child Trust Fund accounts. It’s easy and free to find out where your money is.

“Go to findCTF.sharefound.org or GOV.UK to locate it today”.

In the last year more than 450,000 customers, with just their National Insurance number and date of birth, used the free GOV.UK tool to locate their Child Trust Fund.

More information on Child Trust Funds and how to access your savings can be found on GOV.UK.  

Check you’re not missing State Pension payments

During Pensions Awareness week, HM Revenue and Customs (HMRC) is urging tens of thousands of people to check if they are eligible to boost their State Pension. 

Some parents who claimed Child Benefit before 2000 are missing out on State Pension payments they are entitled to because of gaps in their National Insurance records.

HMRC is urging those affected, who are mainly women at, or approaching, State Pension age, to check for gaps in their National Insurance record and top up their State Pension for free.

Home Responsibilities Protection (HRP) was applied to the National Insurance (NI) records of those who claimed Child Benefit between 1978 and 2000, to protect their State Pension. It reduced the number of qualifying years a person with caring responsibilities needed to receive the full basic State Pension. It was replaced by National Insurance credits in 2010.

However, if someone claimed Child Benefit before May 2000 and did not provide their NI Number on their claim, HRP may not have been applied and their State Pension entitlement could have been affected.

If people are missing HRP from their NI record, it doesn’t automatically mean their State Pension calculation is incorrect, but it does increase the possibility, particularly if they spent a number of years away from work to raise a family.

HMRC and the Department for Work and Pensions (DWP) are working to identify those people affected and encourage them to make a claim for HRP so their records can be amended.

People can check their eligibility and make a claim on GOV.UK and takes about 15 minutes to complete. They can also claim by post using form CF411.

James Murray, Exchequer Secretary to the Treasury, said: “The State Pension is the foundation of state support for people in retirement.

“We are urging people to check their National Insurance records to make sure they will receive the pension they deserve.”

HMRC has already written to 257,000 pensioners who could have HRP missing from their NI record and is now contacting those under State Pension age to encourage them to use our eligibility checker. Customers do not need to wait for the letter before they make a claim.

Emma Reynolds, Minister for Pensions, said: “The Government’s priority is to ensure pensioners have security and dignity in retirement.

“I strongly encourage anyone who thinks they are missing out to check their eligibility and apply for Home Responsibilities Protection – taking just a few minutes out of your day now could mean a boost to your retirement.”

People can check their National Insurance record online or via the free and secure HMRC app.

Individuals do not need to apply for HRP if the missing year has already been counted as a qualifying year for their State Pension calculation, or are above State Pension age and already receive the full basic State Pension amount.

If someone first claimed Child Benefit after May 2000, they will not be affected and do not need to contact HMRC because parents were required to include their NI number on their Child Benefit claim forms.

If a customer makes a successful claim, HMRC will update their NI record and DWP will recalculate their State Pension entitlement. State Pension entitlements will either increase or remain the same, depending on an individual’s circumstances. Some customers over State Pension age may also receive some arrears payments.