Tag: HMRC

Scottish teenagers to get access to pot of money over the next nine years

Thousands of teenagers in Scotland are set to benefit for the first time from money in Child Trust Funds (CTFs) that has been waiting for them since they were young children.

Since 2002, around 6.3 million CTF accounts have been set up across the UK, roughly 4.5 million by parents or guardians and a further 1.8 million set up by HMRC where parents or guardians did not open an account. In Scotland there are approximately 447,000 accounts.

This means some children do not know there are accounts in their name, so are unaware their money is waiting for them.

From 1 September 2020, the oldest children will turn 18 and be able to access their money.

Around 55,000 accounts will mature each month and HMRC has created a simple online tool to help young people find out where their account is held.

If a parent or guardian is unsure of where their child’s CTF account is held they can also use this tool.

For those who do not have the identifying information required to access the tool, HMRC will provide alternative, non-digital routes to finding a CTF provider upon request.

HMRC and The Share Foundation are also working together to help children in need of further support.

HMRC will send details of the CTF provider by post within three weeks of receiving their request.

Economic Secretary to the Treasury, John Glen, said: We want to make sure all young people can access the money which has been set aside for them, to invest in their future and continue a savings habit, as they turn 18.

“If you’re unsure if you have an account or where it may be, it’s easy to track down your provider online.”

UK Government Minister for Scotland, Minister David Duguid, said: “This will be a welcome boost for many Scottish young people, particularly welcome in what has been a difficult year for many.

“I encourage all young people aged between 16 – 18 years in Scotland to check if they have a dormant Child Trust Fund. This money, provided by UK Government, is rightly yours. It only takes a few minutes of your time to check your eligibility online.”

The accounts were set up to encourage positive financial habits and a saving culture among the young account holders. HMRC is working with the Money and Pension Service (MaPS) and the CTF providers to continue to provide financial education to the beneficiaries.

CTFs were originally set up for children born between 1st September 2002 and 2nd January 2011, with a live Child Benefit claim.

Parents and guardians received a voucher to deposit in a Child Trust Fund (CTF) account on behalf of the child. At 16 years, the child can choose to operate their account or have their parent continue to operate it, but they cannot withdraw the funds.

At 18 years of age, the CTF account matures and the child is able to withdraw money from the fund or move it to a different savings account. Over 700,000 accounts will mature each year.

The accounts are not held by HMRC, but by a number of CTF providers who are financial services firms. Anyone can pay into the account, with an annual limit of £9,000 and there’s no tax to pay on the CTF savings interest or profit.

Save up to £2,000 with Tax-Free Childcare in Scotland

As schools return in Scotland, HM Revenue and Customs (HMRC) is reminding working parents they could save up to £2,000 per child per year to pay towards after-school clubs and other childcare services.

Around 110,000 families in Scotland are eligible for Tax-Free Childcare, which can cut thousands of pounds off childcare bills.

All families have to do is pay into their Tax-Free Childcare account and for every £8 that they deposit, the UK Government immediately makes a top-up payment of an additional £2.

The scheme is open to working parents, including the self-employed, who earn between the minimum wage and £100,000 per year and have children aged 0-11 years old. Families with a disabled child, aged 0-17 years old, can receive up to £4,000 in government support each year.

Families in Scotland can choose from childcare providers that have signed up to Tax-Free Childcare, including nannies, nurseries, childminders or after-school clubs.

HMRC’s Deputy Chief Executive and Second Permanent Secretary, Angela MacDonald, said: “As more parents across the country return to work and kids head back to school following the outbreak of the Coronavirus pandemic, there has never been a better time to sign up to Tax-Free Childcare.

“It takes just minutes to set up an account on our Childcare Choices website and soon you could be receiving up to £2,000 per child towards the cost of childcare each year.”

UK Government Minister for Scotland, Iain Stewart, said: “Tens of thousands of families in Scotland are eligible to access savings towards after-school clubs and other childcare services thanks to the UK Government’s Tax-Free Childcare scheme.

“As more parents return to work and children to Scotland’s schools following the arrival of the COVID-19 pandemic, I urge people to make full use of the support. The scheme is part of a significant package of measures that the UK Government has in place to help families in Scotland.”

You can find out more and apply through the Childcare Choices website. It includes a Childcare Calculator that compares all the government’s childcare offers to check what works best for individual families.

Tax-Free Childcare is just one example of the support available to families in Scotland from the UK Government. More information on other schemes such as Help To Save and Marriage Allowance can be found on the Delivering for Scotland website.

How Tax-Free Childcare works:

  • Working parents can apply, through the childcare service, to open an online childcare account. The scheme is available for children under the age of 12, or under the age of 17 for children with disabilities.
  • If you or your partner have an ‘adjusted net income’ over £100,000 in the current tax year, you will not be eligible. This includes any bonuses you expect to get.
  • For every £8 that families pay in, the UK Government will make a top-up payment of an additional £2, up to a maximum of £2,000 per child per year (or £4,000 for disabled children). This top-up is added instantly and parents can then send payments directly to their childcare providers. The maximum government top-up is £500 per quarter for each child, or £1,000 if the child is disabled.
  • All registered childcare providers – whether nannies, nurseries, childminders or after-school clubs – can sign up online to receive parents’ payments through Tax-Free Childcare.
  • Parents need to sign back in every three months and confirm their details are up-to-date, to keep getting government top-ups.
  • Families who were already signed up to Tax-Free Childcare but have fallen below the minimum income requirement due to COVID-19 will continue to receive financial support until 31 October. Critical workers who may exceed the income threshold for the 2020-21 tax year due to working more to tackle the pandemic, will continue to receive support this tax year. More information.
  • You can check your eligibility for Tax-Free Childcare in relation to COVID-19.

Job retention scheme goes live

The UK Government’s Coronavirus Job Retention Scheme goes live today, with businesses able to claim up to £2,500 a month per employee towards staff wages.

The scheme is live 10 days ahead of schedule and will help hundreds of businesses across Edinburgh and the Lothians.

The job retention scheme, announced by Chancellor Rishi Sunak as part of a package of support to protect jobs and businesses, allows employers to claim for a cash grant of up to 80% of a furloughed employees wages, capped at £2,500 a month.

Employers can apply for direct cash grants through HMRC’s new online portal – with the money expected to land in their bank accounts within six working days. 5000 HMRC staff have been allocated to operate the scheme.

Last week the Chancellor announced the scheme will be extended for a further month until the end of June, to reflect continuing Covid-19 lockdown measures.

Employers can access the scheme here: https://www.gov.uk/guidance/claim-for-wages-through-the-coronavirus-job-retention-scheme

Lothians MSP, Miles Briggs, said: “This is welcome news for employees and employers who have had to shut shop during the Coronavirus lockdown.

“Without this much needed support many businesses across the region would have struggled to continue operating.

“The UK government and HMRC civil servants have done exceptionally well to get this scheme up and running so fast.”

Chancellor of the Exchequer, Rt Hon Rishi Sunak MP, said: “Our unprecedented job retention scheme will protect millions of jobs across the country and is now up and running. 

“It’s vital that our economy gets up and running again as soon as it’s safe – and this scheme will allow that to happen.”

Don’t miss out: claim Child Benefit by phone or post, HMRC tells new parents

Parents of new-borns will still be able to claim Child Benefit despite the outbreak of coronavirus (COVID-19), HMRC announced today.

Even though General Register Offices remain closed for now, parents can still claim Child Benefit without having to register their child’s birth first to ensure that they do not miss out.

First time parents will need to fill in Child Benefit Claim form CH2 found online and send it to the Child Benefit Office. If they haven’t registered the birth because of COVID-19, they should add a note with their claim to let us know.

If they already claim Child Benefit, they can complete the form or add their new-born’s details over the phone on 0300 200 3100. They will need their National Insurance number or Child Benefit number.

Child Benefit claims can be backdated by up to 3 months.

This announcement is timely as Child Benefit payments increased from 6 April to a weekly rate of £21.05 for the first child and £13.95 for each additional child. Child Benefit is paid into a parent’s bank account, usually every 4 weeks.

Only one person can claim Child Benefit for a child. For couples with one partner not working or paying National Insurance contributions (NICs), making the claim in their name will help protect their State Pension.

Financial Secretary to the Treasury, Jesse Norman, said: “We need people to stay at home in order to protect the NHS and save lives. Today’s change means new parents won’t miss out financially and can keep their families safe.

The government will do whatever it takes to support people and the NHS during this outbreak, and HMRC is working around the clock to help families and businesses across the UK.

Angela MacDonald, Director General for Customer Services at HMRC, said: “It’s really important that new parents remember to register for Child Benefit, even during these unprecedented times.

“The increase in Child Benefit is a boost for family budgets but there’s more to claiming than the payments. We’re encouraging people to claim so they don’t miss out on National Insurance credits that help protect their State Pension. It also helps children to get their National Insurance number automatically at 16.”

HMRC is reminding High Income Child Benefit Charge customers of the importance of claiming Child Benefit, even if they choose to opt out of receiving monetary benefits.

The tax charge applies to anyone with an income over £50,000 who claims Child Benefit or whose partner claims it. Even if you do have to pay the tax charge, you could still be better off by claiming Child Benefit – the tax is 1% of Child Benefit for each £100 of income over £50,000.

You can use the Child Benefit tax calculator to work out how much you may have to pay, or you can opt out of receiving Child Benefit payments altogether when you complete the form, so you won’t have to pay the charge but will still protect your State Pension.

If you need help or support with this, call Granton Information Centre on 0131 551 2459 or 0131 552 0458, email info@gic.org.uk

Edinburgh’s new UK Government Hub to be named Queen Elizabeth House

The new flagship UK Government Hub in Edinburgh will be called ‘Queen Elizabeth House’, Scottish Secretary David Mundell announced today. 

The new Hub, located near Waverley Station, is a seven story, 190,000 square feet, ultra-modern office space. It will bring together nearly 3,000 UK Government civil servants from a range of UK Government departments. Continue reading Edinburgh’s new UK Government Hub to be named Queen Elizabeth House

Progress on UK Government’s flagship Edinburgh Hub

The opening of the new flagship UK Government hub in Edinburgh moved a step closer yesterday when the property developers Artisan Real Estate formally handed over the keys of the building to Scottish Secretary David Mundell. Continue reading Progress on UK Government’s flagship Edinburgh Hub

£15.6 million underpayment identified for workers on the minimum wage

More than 200,000 workers who were paid less than the minimum wage have been identified following a record government clampdown.

  • Record £15.6 million of underpayment identified for more than 200,000 workers
  • Employers fined unprecedented £14 million for not meeting legal obligations
  • More than 600 employers named in 2017/18 as part of ‘naming’ rounds
  • Ramped up efforts by HMRC to crackdown on underpayment and boost compliance

Her Majesty’s Revenue and Customs (HMRC) achieved record enforcement results this year, identifying £15.6million of underpayments.

The number of workers identified as underpaid was double that in 2016/17 and the highest number since the National Minimum Wage came into force. In every case, the government instructs employers to repay their workers and enforces the return of the missing cash.

The rise in cases follows increased efforts by HMRC to promote compliance and improve employer awareness of the minimum wage.

Business Minister Kelly Tolhurst, said: “We are dedicated to stopping underpayment of the minimum wage. Employers must recognise their responsibilities and pay their workers the money they are entitled to.

“The UK’s lowest paid workers have had the fastest wage growth in 20 years thanks to the National Living Wage and today’s figures serve as a reminder to all employers to check they are getting their workers’ pay right.”

Over the past year, 56 employers took advantage of a HMRC pilot scheme where employers were encouraged to come forward outside of an investigation. This resulted in nearly £250,000 in arrears being declared for just under 700 workers.
The year also set a new record for penalties issued by the government, with £14 million in fines issued to employers.

More than 600 employers who were found to have underpaid their workers the minimum wage were named in 2017/18. This is the largest number in any single year since the scheme began in 2014.

This year, the social care, retail, commercial warehousing and gig economy sectors have been prioritised by HMRC for enforcement of the minimum wage. This is alongside employment agencies, apprentices and migrant workers. These sectors are where non-compliance with National Minimum Wage is believed to be more widespread.

Penny Ciniewicz, HMRC Director General of Customer Compliance, said:
“HMRC is committed to ensuring that workers receive the wages they are legally entitled to, irrespective of their employer’s size or business sector, and today’s figures highlight our success over the last year.

“If anyone thinks they are not receiving at least the minimum wage, they can contact the Acas helpline on 0300 123 1100 in confidence or submit a query online through our complaints form.”

Low Pay Commission Chairman Bryan Sanderson said: “All workers are entitled to be paid at least the minimum wage, so it is good to see increased focus on enforcement bearing fruit and securing more arrears for more workers.

“Awareness of the minimum wage is vital for workers and employers alike, and strong enforcement is critical to its success.”

Funding for minimum wage enforcement has reached record levels, rising to £26.3 million in 2018/19 from £20 million in 2016/17.

For more information about your pay, or if you think you might be being underpaid, get advice and guidance at www.gov.uk/checkyourpay. Workers can also seek advice from workplace experts Acas.