Tag: HMRC

Less than a month left to join VAT Deferral New Payment Scheme

Businesses that deferred VAT payments last year have one month left to join online to pay in monthly instalments under the VAT Deferral New Payment Scheme, HM Revenue and Customs (HMRC) has warned.

The online portal for the new payment scheme closes on 21 June 2021.

Over half a million businesses deferred £34 billion in VAT payments due between March and June 2020 under the VAT Payment Deferral Scheme. Businesses had until 31 March 2021 to pay this deferred VAT or, if they could not afford to do so, they could go online from 23 February to set up a new payment scheme and pay by monthly instalments to spread the cost.

Jim Harra, HMRC’s Chief Executive, said: “Businesses in Scotland that deferred paying their VAT last spring have until 21 June to join the VAT Deferral New Payment Scheme online. They should act now to avoid missing out on this opportunity to spread payment of their deferred VAT across monthly, interest-free, instalments.

“The new payment scheme is part of the Government package of support worth over £350 billion to help protect millions of jobs and businesses during the pandemic and as we emerge on the path to recovery.

“HMRC will continue to do all we can to help businesses as they reopen and rebuild.”

Jesse Norman, Financial Secretary to the Treasury, said: “Thanks to the Government, more than half a million businesses were able to defer their VAT payment last year. This provided support at a critical time, protecting millions of jobs and businesses during the pandemic and injecting £34 billion into the UK economy.

“The VAT Deferral New Payment Scheme means businesses can now manage their cashflow by paying their deferred VAT more gradually, continuing to protect jobs across the UK as we emerge from the pandemic and build back better.”

The March, April and May joining dates have passed, but businesses can still spread their payments across up to eight equal monthly instalments, interest-free, if they join by 21 June 2021. Payments can easily be set up via the VAT Deferral New Payment Scheme portal.

HMRC data to 30 April 2021 shows 228,850 businesses that deferred their VAT last year have already paid their VAT in full. This, along with instalments already made under the new payment scheme and other payment plans, totals £15.1 billion. Since the online service opened on 23 February 2021 another £11.5 billion has already been committed to future instalment payments by 134,627 businesses.

Eligible businesses that are unable to use our online service by 21 June 2021 can ring the HMRC Coronavirus Helpline on 0800 024 1222 to join the scheme until 30 June 2021.

Businesses may be charged a 5 per cent penalty and / or interest if they don’t join up to the scheme online by 21 June, or pay in full by 30 June, or contact HMRC to make an arrangement to pay by 30 June 2021. Businesses should also contact HMRC by 30 June 2021 if they need to agree extra help to pay.

More than 63,500 file Self Assessment on first day of tax year

HMRC urges others to follow

More than 63,500 customers filed their 2020/21 tax return online on 6 April, HM Revenue and Customs (HMRC) has revealed.

And with almost 950,000 online Self Assessment returns received so far this tax year, HMRC is urging others to do the same and file their tax returns early. Each year, thousands of people choose to file early, as soon as one tax year ends and the new one starts.

HMRC has seen a growing trend in early filers. In the last five tax years, the number of customers choosing to file on the first day of the new tax year has almost trebled from 22,885 in 2017 to 63,521 in 2021.

HMRC has today, published information to help customers file early – how to do it, what the benefits are, and what they need to get started.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “There are many advantages to completing your Self Assessment tax return sooner rather than later, not least that if you’re due tax refund you’ll get the money within a few days.  

“Our new online guide helps answer many of the questions customers have about Self Assessment. Go to GOV.UK and search ‘file your tax return early’.”

The Self Assessment guide will help customers navigate through the tax return process. Customers do not need to wait to submit their Self Assessment, they can file at a time that suits them and avoid any last-minute rush to meet the deadline on 31 January 2022.

It includes helpful information on:

·         How to get help with your tax return

·         What to do when declaring furlough payments, Self-employed Income Support Scheme grants or other COVID-19 support measures

·         What information you need before you can start your tax return

·         Help with paying your bill, and

·         What to do if you have paid too much tax

HMRC recognises that the pandemic has been a worrying time for Self Assessment customers and is doing all it can to support them accurately file their tax returns and meet their obligations. In addition to the factsheet, guidance and help sheets are available on GOV.UK.

Customers should also be aware of copycat HMRC websites and phishing scams. They should search ‘self assessment’ on GOV.UK to get the correct link for their Self Assessment tax return online securely and free of charge. They also need to be alert if someone calls, emails or texts claiming to be from HMRC, asking for bank or other personal details, threatening arrest or demanding a money transfer. It might be a scam. Anyone who is unsure can use the checklist on GOV.UK to help them decide if the contact they received is a scam.

Working from home? Scots may be eligible to claim tax relief

HM Revenue and Customs (HMRC) is accepting tax relief claims for working from home due to coronavirus during 2021/22. More than 550,000 employed workers have already claimed and are benefitting from the tax relief.

If employed workers were told to work at home by their employer because of coronavirus and, as a result, their household costs have increased, they are eligible to claim the working from home tax relief. It is quick and easy to claim via HMRC’s online portal.

HMRC received more than three million claims across the UK for the tax relief for the 2020/21 tax year.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Half a million people have already reduced their Income Tax this year by up to £125, by claiming tax relief on their working from home expenses.

“We want everyone who’s eligible to benefit, so we’ve made it quick and easy to do online. Check if you’re eligible and apply at GOV.UK by searching ‘working from home tax relief’.

“HMRC is continuing to help and support people affected by the pandemic.”

From 6 April 2020, the amount employers have been able to pay tax-free without employees having to provide evidence of an increased bill is up to £6 a week.

Employees who have not received the working from home expenses payment direct from their employer can apply to receive the tax relief from HMRC.

Eligible customers can claim tax relief based on the rate at which they pay tax. For example, if an employed worker in Scotland pays the 21% intermediate rate of tax and claims tax relief on £6 a week, they would receive £1.26 a week in tax relief (21% of £6 a week) towards the cost of their household bills.

Higher rate taxpayers would therefore receive £2.46 a week (41% of £6 a week). Over the course of the year, this could mean customers can reduce the tax they pay by £65.52 or £127.92 respectively.

Taxpayers can check if they are eligible via GOV.UK.

To claim for tax relief for working from home, employees can apply directly via GOV.UK for free. Once their application has been approved, the online portal will adjust their tax code for the 2021/22 tax year. They will receive the tax relief directly through their salary until March 2022.

If employees were required to work from home last year but did not claim for the tax relief, they have not missed out; HMRC will accept backdated claims for up to four years. They will receive a lump sum payment for any successful backdated claims.

Using an agent to apply for the working from home tax relief, and other similar schemes, could result in customers paying unnecessary fees or commission.

Using the GOV.UK service is free, and customers will receive 100% of the tax relief that is due. Agents will not be able to use the online portal to apply for the relief on a customer’s behalf.

Customers reminded to look out for tax credits renewals packs

HM Revenue and Customs (HMRC) is sending out about 2.5 million annual renewals packs to tax credits customers from this week. Customers should check their details in the renewal pack and report any change in circumstances to HMRC.

The packs will be sent out over the next six weeks and all customers should receive theirs by 4 June.

HMRC recognises that many tax credits customers will have been affected by the pandemic and may have earned less money than in previous years. It is important that customers check the details contained in their annual renewal pack are correct, including income details.

Renewing online is quick and easy. Customers can log into GOV.UK to check on the progress of their renewal, be reassured it is being processed and know when they will hear back from HMRC. Customers can also use the HMRC app on their smartphone to:

  • renew their tax credits
  • check their tax credits payments schedule, and
  • find out how much they have earned for the year

Tax credits help working families with targeted financial support, so it is important that people don’t miss out on money they are entitled to.

If there is a change in a customer’s circumstances that could affect their tax credits claims, they must report the changes to HMRC.

Circumstances that could affect tax credits payments include changes to:

·         living arrangements

·         childcare

·         working hours, or

·         income (increase or decrease)

Customers do not need to report any temporary falls in their working hours as a result of coronavirus. They will be treated as if they are working their normal hours until the Coronavirus Job Retention Scheme closes.

Criminals can take advantage of tax credits renewals to text, email or phone taxpayers offering ‘rebates’ or threatening them with arrest if they don’t pay bogus tax owed. Many scams mimic government messages to look authentic.

If someone contacts a customer claiming to be from HMRC, asks for bank or other personal details, threatens arrest or demands that they transfer money, it might be a scam.

Check GOV.UK for HMRC’s scams checklist, and to find out how to report tax scams and recognise genuine HMRC contact.

Customers can get help and information on renewing tax credits:

  • on GOV.UK: manage your tax credits
  • using our webchat service, by going to GOV.UK and searching ‘tax credits general enquiries’
  • by tweeting @HMRCcustomers or posting on HMRC’s Facebook page with general queries
  • by using the HMRC app, available via your phone’s app store
  • by calling the tax credits helpline: 0345 300 3900

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