Tag: HMRC

Government pays £600 million in supported childcare costs through Tax-Free Childcare

More families than ever are using Tax-Free Childcare to save on their childcare bills as the government funded almost £600 million in Tax-Free Childcare top up payments in 2025-26.

Latest figures show a record 868,095 families are benefitting from the scheme and saved thousands on their childcare last year , as HM Revenue and Customs (HMRC) encourages families to sign up to save ahead of the summer holidays.

Tax-Free Childcare is a government funded top-up scheme to 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. Working parents can save up to £2,000 annually per year per child or £4,000 if their child is disabled.

HMRC’S Chief Customer Officer Myrtle Lloyd said: “I’m so pleased these figures show more families than ever are using Tax-Free Childcare to save on their bills. £2,000 is not a small amount and it can make a real difference – especially with the childcare void of the summer holidays approaching. If you haven’t signed up yet, don’t miss out, go to GOV.UK to do it today.”

Once a Tax-Free Childcare account is open, for every £8 deposited by parents, the government tops it up by £2. Parents can receive up to £500 (or £1,000 if their child is disabled) every 3 months to help pay their childcare costs. 

The funds can be used to pay for any approved childcare – before or after-school clubs, a childminder or an activity club during the holidays. It can also be used to pay for any specialist equipment a childcare provider may need for a disabled child.

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 Universal Credit or childcare vouchers 

   Families can check their eligibility and apply on GOV.UK.

  Tax-Free Childcare can be used with the free childcare hours offer as long as eligibility is met.  

£11 million fund to support vulnerable customers with tax affairs

HMRC doubles funding for customers who need extra support

  • More than £11 million in funding available for organisations to help customers with their tax affairs.
  • Voluntary and Community sector organisations invited to bid for funding from today.
  • Successful organisations will receive three-year funding grants from April 2027.

HM Revenue and Customs (HMRC) has pledged more than £11 million to support customers who need extra help, as it launches the latest round of its Voluntary and Community Sector Grant Funding Scheme.

Bids can be submitted from today for the funding, which is available for voluntary and community sector organisations to provide specialist advice and support to HMRC customers who may need extra help with their tax affairs, interacting with its digital services, which continue to expand, or claiming entitlements.

HMRC has more than doubled the three-year grant funding allocation to £11.18 million starting April 2027. Applications can be submitted on GOV.UK until 3 July.

Organisations applying for the funding must show they can provide independent tailored support to customers who may experience barriers including those who:

  • may face difficulties in understanding their tax obligations
  • may have complex needs
  • are digitally excluded from accessing HMRC services

Dan Tomlinson, Exchequer Secretary to the Treasury said: “I’m delighted to build on our commitment to customers who need the most support and make this latest round of funding available for our partners in the voluntary sector who provide invaluable assistance to them.

“This funding means customers, who may be struggling with their tax affairs, are able to get the help they need to make a real difference to their situation.”

Successful organisations will work alongside HMRC’s Extra Support Team to ensure customers get straightforward advice and support in dealing with their tax affairs and ensuring they get the benefits they are entitled to receive.

Between April 2025 and April 2026, more than 43,000 customers, helped by grant-funded organisations working closely with HMRC’s Extra Support Team, were able to engage with HMRC in a way that works for them and access the information they need.

Myrtle Lloyd, HMRC’s Chief Customer Officer said: “We are all about making it easier for people to get their tax right and by working closely with our Voluntary and Community sector partners we can ensure our customers who need extra support have access to help when they need it most.”

The grants, worth £3.73 million a year, will be awarded quarterly over the 3 years between April 2027 and April 2030. Successful organisations will be announced later this year.

For more information on the Voluntary and Community Sector Grant Funding Scheme, eligibility and to apply, go to GOV.UK.

CASE STUDY

Elena*, who is from the South East of England, works as a self-employed hairdresser, partly at home and partly in a salon where she rents a chair.

When she contacted a Voluntary and Community Sector grant-funded organisation in September 2024, she was struggling with depression following the loss of a family member and divorce. In her mid-forties, she had no sustainable income, was receiving Universal Credit, and struggling just to afford the basics.

She was behind with her rent and Council Tax as well as a tax debt of £1,093, including Late Filing Penalties and interest.  

Elena got in touch about her tax debt and three years of outstanding tax returns. As someone who had always struggled with maths, she found it difficult to manage her tax.

One of the volunteer advisers worked with Elena to help her complete her outstanding tax returns which resulted in an increase in her tax liability to £1,824.34. 

After the grant-funded organisation contacted HMRC, they waived the Late Filing Penalties and associated interest leaving only the tax balancing payments and a small amount of interest, totalling £503 to pay.

Elena emailed the volunteer who had supported her to express the real difference our support had made to her future. 

New parents urged to claim Child Benefit for their baby now

  • 6.8 million families are claiming Child Benefit.
  • More than 30% of new parents are missing out on payments by not claiming in their baby’s first year.
  • Parents urged to claim via the HMRC app to ensure they get their payment as quickly as possible.

One in three new parents are missing out on Child Benefit payments in their baby’s first year, new figures reveal.

HM Revenue and Customs (HMRC) is urging parents who welcomed a baby this Spring to claim now via the HMRC app or online at GOV.UK.

While more than 6.8 million parents received Child Benefit in the year to August 2025, only 68.8% of them claimed the crucial government support before their baby’s first birthday. 

More than 140,000 babies were born between April and June last year and while many parents are enjoying new beginnings this Spring, the latest statistics show thousands of families could be missing out on much-needed cash by delaying their claim.

Child Benefit is worth £27.05 per week – or £1,406.60 a year – for the eldest or only child and £17.90 per week – or £930.80 a year – for each additional child, with no limit as to how many children parents can claim for. 

Myrtle Lloyd, HMRC’s Chief Customer Officer, said: “Spring is a wonderful time to welcome a baby and claiming Child Benefit as soon as possible means your family can benefit from much-needed financial support. 

“It is quick and easy to claim Child Benefit via the HMRC app at a time that suits you.” 

Child Benefit can be claimed 48 hours after the baby’s birth is registered but can only be backdated for up to 3 months from the date HMRC receives the claim, meaning thousands of families are not getting what they’re entitled to receive.

Parents can access their Child Benefit account quickly and easily via the HMRC app. 

In a recent survey, half of parents with children under the age of 18 said that they would like to be able to conduct all of their tax matters digitally.

To make a new claim for Child Benefit, parents can 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 YouTube video explaining how parents can make a claim, with payments usually paid every 4 weeks automatically into a bank account. 

If a claimant or their partner has an income of more than £60,000 a year, they will be liable to pay the High-Income Child Benefit Charge (HICBC), with more information including about how to pay on the HICBC PAYE digital service on GOV.UK.

HMRC: Parents of teens reminded to extend Child Benefit claim online

Teenager turning 16?  Don’t miss out on Child Benefit

  • Parents of teenagers starting qualifying further education or training courses must extend their Child Benefit claim by 31 August
  • About 1.5 million parents of 16-19-year-olds are to receive reminder letters in coming weeks
  • The quickest and easiest way to extend is via the HMRC app or online at GOV.UK

Parents of 16-19-year-olds are reminded to extend their Child Benefit claim if their teenager is staying in certain types of education or training after their GCSEs or National 5s.

Child Benefit will automatically stop on 31 August on or after a child’s 16th birthday unless parents confirm their teenager’s plans. Around 1.5 million reminder letters will be sent from late April, with most landing on doorsteps in early May.

Parents don’t need to wait for their letter. HM Revenue and Customs’ (HMRC) digital service for extending claims opened on 1 April, so those who already know their teenager’s plans can act today.

Claim extensions can be made on the HMRC app or online at GOV.UK. The letters also include a QR code linking directly to the digital service.

Child Benefit is worth £27.05 a week – or £1,406.60 a year – for the eldest or only child and £17.90 a week for each additional child. Last year, 874,000 parents extended their claim, with more than half doing so online or through the HMRC app.

Myrtle Lloyd, HMRC’s Chief Customer Officer, said: “Child Benefit is a real financial boost for families, so if your teenager already knows they’re staying in education or training after their GCSEs or National 5s, you don’t need to wait for our letter.

“You can extend your Child Benefit claim today in minutes via the HMRC app or online at GOV.UK.”

Child Benefit can continue for teenagers studying full time in non-advanced education, or on unpaid approved training courses. Visit GOV.UK for the full list of eligible courses.

If a Child Benefit claimant or their partner has an individual income of between £60,000 and £80,000, the higher earner may be liable for the High Income Child Benefit Charge (HICBC). Use the Child Benefit tax calculator on GOV.UK for an estimate.

Parents can pay the charge through their PAYE tax code using the HICBC digital service, or through Self Assessment.

Payroll fraudsters jailed for 22 years

  • West Lothian-based business stole £8.8 million of VAT in employment agency scam
  • The stolen money funded lavish lifestyles, with cash splashed on gold bullion, diamonds, fast cars and expensive properties. 
  • One director is already serving a six-year sentence for a separate sophisticated VAT fraud 

The bosses of a corrupt payroll company that stole millions of pounds of VAT have been jailed for more than 22 years. 

West Lothian-based Linear Services handled payroll for 27 employment agencies but didn’t hand over VAT they owed to HM Revenue and Customs (HMRC) during a two-year fraud. 

Graeme Cullen, Leslie Thompson, Graham Newall and Martin Lang ran the firm that charged VAT on invoices totalling £8.8 million between 2015 and 2017. The court heard the gang lived extravagant lifestyles with huge amounts of money spent on expensive homes, holidays, diamonds and even gold bullion. 

Thompson is already serving a six-year sentence for his role in an elaborate multi-million-pound tax fraud that led to convictions for a network of 20 corrupt company directors.

The 63-year-old, from Bathgate, West Lothian, was jailed in October, while his wife Beverley was handed a two-year suspended sentence for her role in the elaborate scam.

The gang were caught following a lengthy investigation by HMRC’s Fraud Investigation Service, who worked alongside partners from Police Scotland’s Specialist Crime Division.

Lang, 68, pleaded guilty on 30 January. Cullen, 54, Thompson, 63, and Newall, 49, were sentenced on 21 April after an eight-week trial at Glasgow High Court. 

HMRC urges all businesses to carry out meaningful due diligence on any supply of services and anyone with any information about any type of tax fraud can report it to HMRC on GOV.UK.

Pensioners urged to be alert to Winter Fuel Payment scams

  • Winter Fuel Payments paid in winter 2025 will be recovered from pensioners with income above £35,000
  • Check if your payment will be reclaimed at GOV.UK – you don’t need to contact HM Revenue and Customs (HMRC)
  • Scammers may try to trick customers into handing money over

Pensioners are being warned to be on high alert for scams as the recovery of Winter Fuel Payments begins this month.

Almost two million people are expected to repay their winter 2025 payment due to their annual income being more than £35,000 – for most, an automatic process.

HMRC saw more than 25,000 Winter Fuel Payment scam referrals over the last 12 months and is warning that scammers may now use the recovery process as a hook to use texts, emails and phone calls to target this group.

For most, the payment will be recovered through a change to their PAYE tax code from this month (April 2026) with no need to contact HMRC.

For those in Self Assessment who file online, the payment should be pre-populated in their 2025 to 2026 tax return, due by 31 January 2027. Customers should check and add it manually if it is not shown.

Paper filers will need to add it on their tax return, due by 31 October 2026. 

This applies across the UK – including in Scotland, where the payment is known as the Pension Age Winter Heating Payment and in Northern Ireland, where payments were made by the Department for Work and Pensions on behalf of the Northern Ireland Executive. In all cases, recovery is handled by HMRC.

Myrtle Lloyd, HMRC’s Chief Customer Officer, said: ““Criminals are great pretenders and often use fake letters, emails, calls and texts to impersonate HMRC and trick people into giving them money.

“I’d encourage anyone who’s unsure to use our online tool at GOV.UK to check whether and how their payment will be recovered – there’s no need to call us”

HMRC will never contact people by text or email to ask them to repay their Winter Fuel Payment, or to request bank details.

People can use HMRC’s online checking tool at GOV.UK to see whether their payment will be reclaimed and how.

Local grassroots sports clubs benefitting from millions in tax relief

For local sports clubs every penny and pound counts. More than 8,000 clubs across the UK are getting a much-needed financial boost after registering as a Community Amateur Sports Club (CASC) with HM Revenue and Customs (HMRC). In doing so, they are able to claim a variety of tax reliefs including business rates and gift aid. 

Tax reliefs for grassroots clubs means they can become financially sustainable, keep membership fees affordable and re-invest in their facilities so they can focus on delivering the best sports and social opportunities for local people.

With thousands of clubs already registered and receiving financial support through tax reliefs, Sandeep Ghelani, Senior Policy Advisor from HMRC outlines the benefits of the scheme and encourages other clubs to register today.

Is your Community Amateur Sports Club (CASC) eligible to register for tax relief?  

To be eligible for tax relief as a CASC, clubs must be based in the UK, provide facilities for eligible sports and encourage people to take part. The club must also be set up with a governing document, open to the whole community with limited fees, organised on an amateur basis and to be managed by ‘fit and proper’ people. More about eligibility can be found on GOV.UK. 

What reliefs are available to clubs once registered?

After registering with HMRC, clubs will be eligible for a number of financial reliefs on income, gains and profit including:

  • Business Rate relief
  • Gift Aid relief
  • Corporation Tax exemptions 
  • Tax relief on fundraising events 
  • Capital Gains exemption
  • Inheritance Tax benefits

You can find out more about the tax reliefs claimed through the CASC scheme on GOV.UK.

Two of the most popular reliefs claimed are for business rates and gift aid. In 2025 alone, CASCs benefitted from £40 million in business rates relief and £3 million in Gift Aid relief.

Two clubs who have benefitted from their registration as a CASC include Salisbury Rugby Football Club and Frocester Cricket Club.

Alastair Downey, Chairman of Frocester Cricket Club, a long-established and thriving CASC explains how the tax reliefs have helped the club: “Mandatory 80% business rates relief and access to gift aid has provided vital financial support over the years.

“Without this we would have been unable to build our new cricket pavilion, of which more than £25,000 in funding was from gift aid contributions.” 

Salisbury Rugby Football Club is a successful CASC with 1,000 members. President Nicola Rawson explains the benefits of CASC: “The 80% reduction in business rates and access to gift aid has helped the club enormously.

“We now have newly built changing rooms at the club with was paid for with our own fundraising efforts and almost £25,000 from gift aid contributions. The financial benefits from CASC continue to provide valuable support.”

If you think your CASC could benefit from registering with HMRC, go to GOV.UK to find out more.

HMRC names takeaways, convenience stores and a vape shop in latest deliberate tax defaulters list

INDIVIDUALS AND BUSINESSES NAMED AND SHAMED

About 140 individuals and businesses penalised for deliberately defaulting on tax exceeding £25,000 have today (26 March) been named by HMRC. 

The latest update includes several takeaways, convenience stores, a vape importer and a vape shop. In every case, those named failed to make a full disclosure when HMRC began its investigation – a step that would have kept their details off the list. 

The list covers civil penalties only and does not include criminal convictions for tax fraud. Details remain published for 12 months. 

The full list can be found at: 

https://www.gov.uk/government/publications/publishing-details-of-deliberate-tax-defaulters-pddd/current-list-of-deliberate-tax-defaulters 

Save on Easter childcare egg-spenses in Scotland with Tax-Free Childcare

  • Working families encouraged to cut the cost of Easter childcare by signing up to Tax-Free Childcare
  • Latest figures show 36,120 families in Scotland saved on their childcare bills in December 2025
  • More than £46 million in government cash helped with childcare costs for almost 660,000 children

More than 36,100 families in Scotland saved money on their childcare in December as HM Revenue and Customs (HMRC) urges families to sign up before booking their Easter holiday childcare.

Working families who sign up to Tax-Free Childcare can make yearly savings of £2,000 off their childcare costs for each of their children up to the age of 11 and £4,000 for disabled children up to the age of 16.

Visit GOV.UK to check eligibility and register for Tax-Free Childcare.

Myrtle Lloyd, HMRC’s Chief Customer Officer, said: “£2,000 a year off childcare bills can make a big difference to household expenses. There are plenty of childcare providers to choose from to suit your needs and your children’s interests – sign up today to make those savings for the Easter school holidays and for your plans for the rest of the year. Go to GOV.UK to find out more.” 

Once a Tax-Free Childcare account has been opened for each child, for every £8 deposited, the government tops it up by £2. A total of £46.6 million in government cash was added to accounts in December, the latest figures show, contributing to the cost of childcare for almost 660,000 children.

A family can save up to £500 every three months for each child (£1,000 every three months if the child is disabled) which can be used to pay for any approved childcare. 

Parents can choose from thousands of providers now accepting Tax-Free Childcare as payment including wraparound care or childminders for term time care, or holiday clubs and workshops during the school holidays. 

Once an account is open, parents can deposit money to use straight away or keep it in the account for whenever it’s needed. Any unused money in the account can be withdrawn at any time.   

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 to help with higher childcare costs that are often involved, 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 Universal Credit or childcare vouchers    

Tax-Free Childcare can be used alongside the free childcare hours, subject to eligibility. 

HMRC: New figures reveal 7 million started a new job in 2025

New figures reveal 7 million started a new job in 2025

  • With National Careers Week under way, jobseekers are reminded to use the HMRC app for essential information when applying for or starting a new job
  • More than 7 million people started new jobs in 2025, an increase of 300,000 from the previous year
  • Downloading the HMRC app means jobseekers have their National Insurance number, employment history and tax code at their fingertips helping them when they start their job

HM Revenue and Customs (HMRC) has revealed more than 7 million people started a new job in 2025. And as National Careers Week is under way, it is reminding those starting a new job in 2026 to download the HMRC app  for their essential tax and employment details.

Whether it’s a young person on the hunt for their first job, or someone looking for a new challenge, a change of career, or a promotion – downloading the HMRC app provides users with instant access to all the employment and tax-related information they need. 

Spring is the busiest time for new recruits – last year more than 1.8 million people started a new job between April and June 2025. Downloading the HMRC app can help avoid those first day nerves and is quick and easy to do via GOV.UK or from the App Store or Google Play.

At the touch of a button, it can display information often asked for by recruiters and employers when someone starts a new job, including:

  • National Insurance number
  • employment and income history
  • Pay As You Earn (PAYE) information, including P60
  • tax code

Myrtle Lloyd, HMRC’s Chief Customer Officer said: “Applying for a job or starting a new job can be hard work in itself. But the HMRC app provides you with handy access to everything you need to make the admin side of things a little easier – especially important for young people who may not know what information an employer requires.

“Download the HMRC app to save yourself some time and stress and avoid those first day jitters.”

The HMRC app had more than 2.7 million new users in 2025. The most popular functions include:

  • nearly 270,000 people downloading their PAYE history showing their P60 which includes detail of previous employment, salary and tax paid to date
  • more than 507,000 people using the tax calculator to work out the tax they pay on their salary
  • more than 522,000 people downloading their National Insurance number to their digital phone wallet to be used whenever it is needed.