Tag: HMRC

£35 million added to State Pension pots

  • Only two months left to boost State Pension by filling gaps in National Insurance records from 2006 onwards
  • Since the launch of the digital service last April, 37,000 people have topped up more than 68,000 years, worth £35 million

People wanting to maximise their State Pension by plugging gaps in their National Insurance record have contributed to a total of 68,673 years, worth £35 million, using the online service since April last year HM Revenue and Customs (HMRC) has revealed.  

Analysis of the digital service has shown:

  • more than 37,000 online payments have been made through the service
  • 65% of the years topped up by customers are from 2017 onwards 
  • the average online top-up payment is £1,835
  • the largest weekly State Pension increase is £113.76

HMRC and Department for Work and Pensions (DWP) are reminding customers they only have 2 months up until 5 April to check their National Insurance record and fill any gaps from 6 April 2006 onwards.

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

The Check your State Pension forecast service on GOV.UK is the quickest and easiest way customers can check what their pension will be in retirement and take action if they need to. People can also use the HMRC app to check their State Pension forecast.

Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive, said: “There are just 2 months left to check and fill any gaps in your National Insurance record from 2006 onwards to boost your State Pension entitlement.

“Don’t delay – it is quick and easy to check your National Insurance record on GOV.UK and it could help your finances in retirement.”

Since the launch of the enhanced digital service in April last year, more than 4.3 million people have used it to check their State Pension forecast.

The end-to-end service means customers can also use it to check and view gaps in their National Insurance record, calculate the difference any payment will make to their State Pension and then make one payment for however many years they need to top up.

Everyone should be aware of the risk of falling victim to scams and should never share their HMRC login details with anyone. HMRC scams advice is available on GOV.UK.

11.5 million file Self Assessment by 31 January deadline

11.5 million file Self Assessment by 31 January deadline

  • More than 11.5 million taxpayers filed their Self Assessment tax return by midnight on 31 January.
  • 97.36% of tax returns were filed online.
  • 90.53% of expected filers filed their Self Assessment.

More than 11.5 million taxpayers beat the Self Assessment deadline to file their tax return for the 2023 to 2024 tax year by 31 January and avoid a £100 late filing penalty, HM Revenue and Customs (HMRC) can reveal.

The number of people who filed their return on deadline day was 732,498, with the most common time being 16:00 to 16:59 when 58,517 people filed. Thousands left submitting their return until the very last minute when 31,442 filed between 23:00 and 23:59.

HMRC is urging anyone who has missed the deadline to file their tax return now and pay any tax owed. One of the quickest ways to pay is via the free and secure HMRC app. Time to Pay arrangements are available for those who cannot pay their tax bill in full. Late filing and late payment penalties are charged for failure to meet the deadline.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Thank you to the millions of people and agents who filed their Self Assessment tax return and paid any tax owed by 31 January.

“I’m urging anyone who missed the deadline, to submit their return as soon as possible to avoid any further penalties. Search ‘Self Assessment’ on GOV.UK to find out more.”

The penalties for filing a tax return late are:

  • an initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time
  • after 3 months, additional daily penalties of £10 per day, up to a maximum of £900
  • after 6 months, a further penalty of 5% of the tax due or £300, whichever is greater
  • after 12 months, another 5% or £300 charge, whichever is greater

There are also additional penalties for paying late – 5% of the tax unpaid at 30 days, 6 months and 12 months. Interest will also be charged on any tax paid late.

If someone regularly sells goods or provides services through an online platform, they may need to pay tax on their income.

Customers can find out more about selling online and paying taxes on GOV.UK by searching ‘online platform income’ or by downloading the HMRC app.

The guidance will help them decide if their activity should be treated as a trade and if they need to complete a Self Assessment tax return.

Deadline approaches for 3.4 million Self Assessment customers

  • 3.4 million Self Assessment returns still to be filed before 31 January deadline – those who miss the deadline risk £100 penalty
  • Customers urged to go online for help and advice
  • Payment for outstanding tax also due by 31 January

With only a week left until the Self Assessment deadline 3.4 million customers are yet to file their 2023 to 2024 tax return. And HM Revenue and Customs (HMRC) is warning them to file now or risk missing the 31 January deadline – and getting a £100 penalty.

More than 66% (8.6 million) have already filed their tax return. Those who are yet to start can go to GOV.UK to find all the support and guidance they need at their fingertips including live webinars, video tutorials as well as plenty of online help sheets.

Once customers have submitted their return, the quickest and easiest way to pay any tax due is via the free and secure HMRC app, which takes less than a minute with immediate confirmation of payment. Nearly 360,000 have paid their Self Assessment tax bill via the app since 6 April 2024, totalling more than £605 million.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Time is running out for the millions still to file their Self Assessment tax return by 31 January. Help and support is available for those who have not yet started their return. Visit GOV.UK and search ‘Self Assessment’ to find out more.” 

A full list of the different ways to pay, including payment plans, can be found on GOV.UK.

It’s important customers always include their bank details as part of their tax return to ensure that if there’s any repayment due, it can be done quickly and securely.

Customer’s reasons for not paying their tax bill or arranging a payment plan by the deadline will be considered individually. While customers who provide HMRC with a reasonable excuse may avoid a penalty, those without reasonable excuse face will be issued with a penalty including:

  • an initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time 
  • after 3 months, additional daily penalties of £10 per day, up to a maximum of £900 
  • after 6 months, a further penalty of 5% of the tax due or £300, whichever is greater 
  • after 12 months, another 5% or £300 charge, whichever is greater 

There are also additional penalties for paying late of 5% of the tax unpaid at 30 days, 6 months and 12 months. If tax remains unpaid after the deadline, interest will also be charged on the amount owed, in addition to the penalties above.

Customers need to be aware of the risk of falling victim to scams and should never share their HMRC login details with anyone, including a tax agent, if they have one. HMRC scams advice is available on GOV.UK. 

5.4 million yet to file their tax return

  • Almost 25,000 taxpayers ‘celebrated’ the New Year by filing their Self Assessment tax return
  • If customers miss the 31 January deadline, they could face a penalty

With less than a month to go, the countdown is on for 5.4 million customers who still need to complete and pay their Self Assessment and avoid penalties, HM Revenue and Customs (HMRC) warns.

Thousands of taxpayers have already done so by completing their tax returns before the fizz was barely flat on New Year’s Day. HMRC can today reveal more than 24,800 people filed on 1 January. A further 38,000 had even squeezed theirs in before the bells on 31 December, with 310 filing between 23:00 and 23:59.

Filing your tax return and paying on time plays an important role in supporting public services and the government’s Plan for Change, which is delivering economic stability and investment across the UK. Anyone who is yet to file their tax return can do so online, via GOV.UK.

Anyone required to file a tax return for the 2023 to 2024 tax year who misses the 31 January 2025 deadline could face an initial late filing penalty of £100.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “We know completing your tax return isn’t the most exciting item on your New Year to-do list, but it’s important to file and pay on time to avoid penalties or being charged interest.

“The quickest and easiest way to complete your tax return and pay any tax owed is to use HMRC’s online services – go to GOV.UK and search ‘Self Assessment’ to get started now.”

Some 97% of customers now file online and one benefit is that they don’t have to complete it all in one go – they can save what they have done and pick it up again later.

Once a tax return is filed, payments can also be made quickly and securely through the HMRC app. Customers can set up notifications in the app to remind them when payments are due, so they don’t need to worry about missing deadlines or penalties. 

Information about the different ways to pay, can be found on GOV.UK.

HMRC has a wide range of resources online including a series of video tutorials on YouTube, help and support on GOV.UK, to support customers in completing their tax return.

For people who can’t meet the tax return deadline, HMRC will treat those with reasonable excuses fairly if they tell us before 31 January.

The penalties for late tax returns are:

  • an initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time
  • after 3 months, additional daily penalties of £10 per day, up to a maximum of £900
  • after 6 months, a further penalty of 5% of the tax due or £300, whichever is greater
  • after 12 months, another 5% or £300 charge, whichever is greater

There are also additional penalties for paying late of 5% of the tax unpaid at 30 days, 6 months and 12 months. If tax remains unpaid after the deadline, interest will also be charged on the amount owed, in addition to the penalties above.

If someone regularly sells goods or provides services through an online platform, they may need to pay tax on their income. Customers can find out more about selling online and paying taxes on GOV.UK by searching ‘online platform income’ or by downloading the HMRC app.

The guidance 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 also may need to file a return if you:

  • are newly self-employed and have earned gross income over £1,000
  • earned below £1,000 but wish to pay Class 2 National Insurance Contributions voluntarily to protect your 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 you or your partner earned more than £50,000

Criminals use emails, phone calls and texts to try to steal information and money from taxpayers. Before sharing personal or financial details, people should search ‘HMRC tax scams’ on GOV.UK to access a checklist and help decide if the contact received is a scam.

 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.