Tag: HMRC

HMRC: Warning to Self Assessment customers as scam referrals exceed 200,000

With the Self Assessment tax deadline behind us, HM Revenue and Customs (HMRC) is warning people to be wary of bogus tax refund offers.

Fraudsters could set their sights on Self Assessment customers, with more than 11.5 million submitting a tax return by last month’s deadline. 

Taxpayers who completed their tax return for the 2022 to 2023 tax year by the 31 January deadline might be taken in by an email, phone call or text message offering a tax rebate. These phishing scams are designed to use personal details for selling on to criminals, or to access people’s bank accounts.  

HMRC responded to 207,800 referrals from the public of suspicious contact in the past year to January – up 14% from the 181,873 reported for the previous 12 months. More than 79,000 of those referrals offered bogus tax rebates.  

Kelly Paterson, HMRC’s Chief Security Officer, said: “With the deadline for tax returns behind us, criminals will now try to trick people with fake offers of tax rebates. 

“Scammers will attempt to dupe people by email, phone or texts that mimic government messages to make them appear authentic. 

“Don’t rush into anything, take your time and check HMRC scams advice on GOV.UK.” 

HMRC will not email, text or phone a customer to tell them that they are due a refund or ask them to request a refund. Customers receive repayments into their chosen bank account, and can see any transactions in their online HMRC account and in the HMRC app. 

Customers can help fight phishing scams by reporting any suspicious communications to HMRC: 

·         forward emails to phishing@hmrc.gov.uk  

·         report tax scam phone calls to HMRC on GOV.UK 

·         forward suspicious texts claiming to be from HMRC to 60599 

In the last year to January HMRC also reported 26,443 malicious web pages to internet service providers to be taken down.

This is a 29% increase from the 20,385 referred by HMRC for removal the previous year. These sites aim to deceive taxpayers and steal their personal information or money. 

They copy the design and branding of genuine websites so criminals can trick people into giving away their personal details. This information is then used to access people’s bank accounts or sold on the web. 

HMRC is reminding customers to be vigilant to any potential scam activity, protect their personal information and report any suspicious activity. 

  1. Remember to: fighting scams:  

Protect 

  • Criminals are cunning – protect your information. 
  • Take a moment to think before parting with your money or information.    
  • Use strong and different passwords on all your accounts so criminals are less able to target you. 

Recognise 

  • If a phone call, text or email is suspicious or unexpected, don’t give out private information or reply, and don’t download attachments or click on links. 
  • Check on GOV.UK that the contact is genuinely from HMRC.   
  • Do not trust caller ID on phones. Numbers can be spoofed.  

Report 

  • If you’re unsure about a text claiming to be from HMRC forward it to 60599, or an email to phishing@hmrc.gov.uk. Report a tax scam phone call on GOV.UK.
  • Contact your bank immediately if you’ve had money stolen, and report it to Action Fraud. In Scotland, contact the police on 101.
  • By reporting phishing emails, you help stop criminal activity and prevent other people falling victim. 
  1. On Monday, the Home Office launched its national campaign ‘Stop! Think Fraud’. Backed by organisations across law enforcement, tech, banking, telecoms and the third sector, a new website was created with advice on how to stay safe online. It can be found at www.gov.uk/stopthinkfraud
  1. More information about Self Assessment  
  1. The Self Assessment payment deadline was 31 January, and anyone with outstanding tax to pay should do so as soon as possible. There are many ways to pay, including online, using the HMRC app, by bank transfer, or setting up a Time to Pay payment plan. 
  1. 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.   
  1. Taxpayers who file or pay late but have a reasonable excuse can appeal penalties on GOV.UK. HMRC has published interactive guidance to explain the process and signpost them to the correct course of action. 
  1. Follow HMRC’s Press Office on Twitter @HMRCpressoffice 

HMRC: Know your worth – check your apprentice pay rates

During National Apprenticeship Week HM Revenue and Customs (HMRC) is encouraging apprentices to claim the money that is rightfully theirs. Whether that’s making sure you’re being paid the correct hourly rate to claiming the savings in your Child Trust Fund, this is how to do it. 

Know your worth 

You’ve started an apprenticeship, you’re bringing home a wage, but are you getting paid correctly? Apprentices are the workers most likely to be underpaid according to The Low Pay Commission.  

Apprentice pay rates

Most workers are legally entitled to the National Minimum Wage, but minimum rates of pay differ, depending on your age and what year of your apprenticeship you’re in. 

  • 16 to 18 years old and in an apprenticeship = £5.28 per hour
  • 19 and over, first year apprentice = £5.28 per hour
  • 19 or over and have completed your first year of apprenticeship? You are entitled to the National Minimum Wage or National Living Wage rate for your age.
  • Rates change on 1 April each year. Search ‘national minimum wage rates’ on GOV.UK. 

Common mistakes made by employers include not paying apprentices for the time they spend training, or for all the time worked; and not increasing the hourly rate after the annual increase, or when the apprentice has completed their first year. 

It is always worth checking your pay. If you think that you are not receiving the correct minimum wage:

  • Speak with your employer or tutor if you are happy to do so. 
  • If you don’t feel comfortable doing that, you can always raise the issue with HMRC online at https://www.gov.uk/minimum-wage-complaint. This can be done any time – day or night. Watch this video to find out more. 
  • You can also call Acas on 0300 123 1100 for confidential advice or the Labour Relations Agency in Northern Ireland on 03300 555 300. Translation services are available.

Claim what’s yours 

Child Trust Funds (CTF) are tax-free savings accounts set up by the UK Government for children born between 1 September 2002 and 2 January 2011. 

The government paid in at least £250, and families and friends were also able to contribute. 

You can take control of your account from 16 years old and withdraw any savings when you turn 18 by contacting your CTF provider. If you don’t know who your CTF account is with, and your parents/guardian are none the wiser, you can ask HMRC. 

You will need your National Insurance number to claim. 

Find out how to claim on GOV.UK by searching ‘find a child trust fund’. 

National Insurance number  

Your National Insurance (NI) number ensures your NI contributions and tax are recorded against your name and unlocks access to a pension and benefits should you need them. 

HMRC should send you your NI number a few months before you turn 16. If you don’t have it, search ‘apply for a National Insurance number’ on GOV.UK.

HMRC app

Our highly rated app is a useful tool. To use it, download the app from the App Store or Google Play and create a ‘Government Gateway’ account. You can access these useful features: 

  • View your NI number and save it to your mobile phone wallet.
  • The tax calculator gives an annual, monthly and weekly estimate of your take home pay.
  • View your take home pay a few days before pay day. 
  • Get a full summary of your employments, income, tax codes, income tax and NI paid for the past five years.
  • View your State Pension and NI contributions. 
  • Find out how the government spends your taxes.

Scams

Protect yourself from the fraudsters who want to swindle you out of your hard-earned money. 

More than 6,500 people aged 18 to 24 reported tax-related phone scams to HMRC last year. 

Common scams include offers of a tax rebate, warnings that your tax details are out of date, or threats of immediate arrest for tax evasion. 

If a phone call, text or email is suspicious or unexpected, don’t give out private information or reply, and don’t download attachments or click on links. 
If you’re unsure about a text claiming to be from HMRC forward it to 60599, or an email to phishing@hmrc.gov.uk.

Report a tax scam phone call on GOV.UK.

Eight million households to receive £2.5 billion Cost of Living support

From today low-income households will start to receive the third and final Cost of Living Payment worth £299

  • Payments are part of the £104 billion Cost of Living support which includes uprating benefits by 6.7% and pensions by 8.5%
  • Comes as more people are set to secure long-term financial security through work thanks to the next generation of welfare reforms 

Millions of households across the UK will start to receive a £299 Cost of Living Payment from today until 22 February as part of the Government’s £104 billion Cost of Living support package.

The payment will be sent out automatically and recipients do not need to apply to receive it. This includes tax credits-only customers who will receive the payment from HMRC between 16 and 22 February.

It is the third of up to three payments totalling up to £900 paid to eligible households on means-tested benefits over 2023/24 and comes as part of a support package that has helped millions of households since autumn 2021.

Our economy has turned a corner, and we are moving away from the big government, high spending, high borrowing, and high tax approach that was necessary before, and focusing on the long-term decisions required to strengthen our economy and give people the opportunity to build a wealthier, more secure life for themselves and their family.

This includes sticking to the plan to keep inflation down – which has already more than halved – and cutting taxes for hard working people to help them keep more of what they earn and drive down the Cost of Living. 

The government says supporting people into well paid jobs is the best way to help people out of poverty and to give people long term financial independence. That’s why we’re introducing the next generation of welfare reforms, including unprecedented employment and health support to give people long term financial security.  

The government says the £2.5 billion Back to Work Plan will break down barriers to work and offer intensive support to those unemployed earlier, while the Chance to Work Guarantee will mean millions of disabled people can try work free from the fear that they could lose their benefits. As well as this, real wages grew 1.3% in the year up to November 2023.

This forms part of wider plans to get Britain working, by tackling inactivity and unemployment, while continuing to support those most in need.  

Mel Stride, Secretary of State for Work and Pensions, said:  “The economy has turned a corner, and with inflation falling we are providing millions of the most vulnerable households with another significant cash boost.

“Our fair approach to welfare is underpinned by a belief that the best way to secure long-term financial security is through work.

“This is why we have cut taxes for over 27 million working people and have launched a £2.5 billion Back to Work Plan to help thousands more people off benefits and into jobs.”

Chancellor of the Exchequer Jeremy Hunt said: “Our decisive action helped to more than halve inflation last year while building the foundations for long-term growth through sensible tax cuts, which will help people’s money go further.

“But the legacy of Covid and the ongoing Ukraine war has meant the last few years have been tough for many, which is why we’ve provided one of the largest support schemes in Europe worth £3,700 for the average household.”

UK Government Minister for Scotland John Lamont said: “This crucial Cost of Living Payment will benefit more than 680,000 people across Scotland.

“We are continuing to help those who need it most and putting more money in the pockets of hard-working families by cutting national insurance and halving inflation.”

Welsh Secretary, David TC Davies said: “Over 400,000 households in Wales will be receiving this payment directly into their bank accounts to help them with the Cost of Living.

“This payment is just part of the £104 billion package that the UK Government has put in place to ensure those most in need are supported.”

The Cost of Living Payments – worth £900 in total – come on top of a [significant package of support’ which has been delivered since autumn 2021. Including:

  • Cutting taxes for over 27 million working people this year through a 2% cut to Class 1 National Insurance Contributions, worth over £450 per year for the average worker.
  • Cutting taxes for self employed people by cutting Class 4 contributions, benefitting 2 million people, and abolishing Class 2 contributions, a tax cut worth an average of £350 per year.
  • Paying three million households the £150 Warm Home Discount this winter and 8.9 million pensioner households up to £600 in Winter Fuel Payments in December last year.
  • Providing Cold Weather Payments to vulnerable households to help them with their energy bills during winter. The scheme – which runs from 1 November 2023 to 31 March 2024 – provides low-income households with an automatic payment of £25 following periods of cold weather.
  • Providing the £900 Cost of Living Payments in 2022 and an additional a cash boost on top of this payment including £300 to pensioner households; £150 to disabled individuals in 2022 and last year.
  • Capping single bus fares at £2 outside of London until the end of next year to help millions of people make significant savings on their travel costs. The fare cap has helped cut bus fares in England by 7.4% between June 2022 and June 2023
  • Paying around half of the typical household energy bill between October 2022 and July 2023 through our Energy Price Guarantee and £400 support scheme.
  • Extending the 5p fuel duty cut and cancelling the planned increase – saving the average driver £200 over two years. 
  • Covering 85% of childcare costs for working households on Universal Credit, up from 70% under the legacy system – currently worth over £19,500-a-year for families with two children.
  • Expanding Free School Meals to 5–7-year-olds – benefitting 1.3 million children and boosting the value of Healthy Start vouchers by over a third – from £3.10 to £4.25.
  • Increasing the Universal Credit work allowance and cutting the taper rate, which was worth an extra £1000 a year to families on universal credit. 

The UK Government says it will continue to support vulnerable people with the Cost of Living from April this year by:  

  • Uprating benefits in line with inflation by 6.7%.  
  • Maintaining the triple lock and increasing the state pension by 8.5% - after the largest ever cash increase last year for around 12 million pensioners.
  • Investing £1.2 billion to restore Local Housing Allowance rates to the 30th percentile of local market rates, meaning 1.6 million private renters will see nearly £800 in additional help.
  • Increasing the National Living Wage by its largest ever cash amount in April– worth over £1,800 to the gross annual earnings of a full-time worker – and lowered the age threshold for eligibility by 2 years.

The changes coming into force in April are part of the UK Government’s £104 billion Cost of Living package worth an average £3,700 per household, including the £900 in direct Cost of Living Payments for those on means-tested benefits. 

People in need of additional support over winter are encourqged to check their eligibility through the Help for Households website for the various Cost of Living schemes that are place.

HMRC: A record 11.5 million tax returns filed by the deadline

A record-breaking 11.5 million taxpayers submitted their Self Assessment tax returns for the 2022 to 2023 tax year by midnight on 31 January, HM Revenue and Customs (HMRC) reveals.

More than 12.1 million taxpayers were expected to file a tax return and pay any tax owed. Of those that met their obligations by the deadline, 778,068 beat the clock to complete it on 31 January, including:

·         61,549 customers who filed between 16:00 and 16:59 – the peak hour for filing

·         32,958 customers who filed between 23:00 and 23:59

HMRC is urging anyone who missed the deadline to submit their tax return now. There is an interactive tool on GOV.UK to help customers with their return. 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 Self Assessment customers and agents who met the deadline.

“Anyone who has yet to file and is concerned that they cannot pay in full may be able to spread the cost of what they owe with a payment plan. Search ‘pay your Self Assessment’ on GOV.UK to find out more.” 

The Self Assessment payment deadline was also 31 January, and anyone with outstanding tax to pay should do so as soon as possible.

There are many ways to pay, including online, using the HMRC app, by bank transfer, or setting up a Time to Pay payment plan. There is a video on YouTube to help customers set up an online payment plan.

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.

Customers can plan ahead for their 2023 to 2024 tax bill and set up a regular payment plan to help spread the cost. HMRC’s Budget Payment Plan enables those who are up to date with previous payments to make regular weekly or monthly contributions towards their next tax bill.

A Budget Payment Plan is different from payments on account, which are usually due by midnight on 31 January and 31 July. 

Taxpayers who file or pay late but have a reasonable excuse can appeal penalties on GOV.UK. HMRC has published interactive guidance to explain the process and signpost them to the correct course of action.

People should 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.

44,800 customers opt to spread the cost as tax deadline looms

Self Assessment customers can set up a payment plan with HMRC to pay their tax bill

As the deadline to submit a Self Assessment tax returns looms, nearly 44,800 people have sorted their tax bills totalling almost £148 million, by setting up a payment plan.

More than 7.7 million Self Assessment customers have already filed their tax return for the 2022 to 2023 tax year, but HM Revenue and Customs (HMRC) is reminding anyone who still needs to pay their tax bill should do so before the deadline on 31 January or risk facing a penalty.

Those who are unable to pay in full can check online to see if they can set up a monthly payment plan called Time to Pay. If they owe less than £30,000, they can use the affordability checker on GOV.UK to help decide the best arrangements for them. Interest will be applied to any outstanding balances from 1 February.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “We want to help Self Assessment customers meet their obligations and there is no time like the present to choose the right payment option for you.

“Whether you choose to pay in instalments, via the HMRC app or using online banking, search ‘pay your Self Assessment tax bill’ on GOV.UK for a full list of options.”

In addition to those who have set up an online payment plan, in December 2023, 28,794 customers used the free and secure HMRC app to pay more than £42 million in tax owed. Customers can also receive a tax refund via the app.

They should include their bank account details when filing, so that if HMRC needs to make a repayment, they can do so quickly and securely.

For those who pay their current estimated tax bill via Payment on Account, the first instalment for the 2023 to 2024 tax year is due on 31 January.

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 will consider a customer’s reasons for not being able to meet the deadline for completing their Self Assessment on time. Those who provide HMRC with a reasonable excuse may avoid a penalty.

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

People should 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.

More information about Self Assessment

Tax return reminder for cryptoasset users 

With use of cryptoassets growing, HM Revenue and Customs (HMRC) is urging people to avoid potential penalties and check if they need to complete a Self Assessment tax return for the 2022 to 2023 tax year. 

Anyone with cryptoassets should declare any income or gains above the tax-free allowance on a tax return. Tax may be due when a person: 

  • receives cryptoassets from employment, if they’re held as part of a trade, or are involved in crypto-related activities that generate an income 
  • sells or exchanges cryptoassets, including:
    • selling cryptoassets for money 
    • exchanging one type of cryptoasset for another 
    • using cryptoassets to make purchases 
    • gifting cryptoassets to another person 
    • donating cryptoassets to charity 

Visit GOV.UK to find out more information about how cryptoassets are taxed. 

The deadline to complete a tax return and pay any tax owed is 31 January 2024. If customers are unsure whether they need to complete a tax return, they can check by using the free online tool on GOV.UK. 

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “People sometimes forget that information about crypto-related income and gains need to be included in their tax return.

“Some people affected may not have had to do a tax return before, so it is important people check. With the Self Assessment deadline just a matter of weeks away, I am urging people not to put off completing it.  

“Help is at hand – you can access a wide range of resources and support online, just search ‘help with Self Assessment’ 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.  

Self Assessment customers can submit their tax returns and pay any tax owed online at GOV.UK. 

HMRC’s free and secure app is the quickest and easiest way customers can pay their tax bill. Information about the different ways to pay can be found on GOV.UK. 

Customers who are unable to pay in full can access support and advice on GOV.UK. HMRC may be able to help by arranging an affordable payment plan, known as Time to Pay for customers who owe less than £30,000. Customers can arrange this themselves online. Go to GOV.UK and search “HMRC payment plan” for more information. 

HMRC will consider a customer’s reasons for not being able to meet the deadline. Those who provide HMRC with a reasonable excuse may avoid a penalty.

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. Interest will also be charged on any tax paid late.  

Everyone should 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. 

All grown up: Child Benefit goes digital

New parents can now claim Child Benefit online for the first time since it was launched 47 years ago, helping millions of families with the cost of raising their children, HM Revenue and Customs (HMRC) has announced.

Since 1977, families claiming Child Benefit had to fill out a paper form, post it, and wait as long as 16 weeks for their first payment. Now, the quick and easy claims process on GOV.UK takes about 10 minutes and payments could be made in as little as 3 days.

Child Benefit is worth £24 a week – or £1,248 a year – for the oldest, or only child. The rate for each additional child is £15.90 a week – or almost £827 a year. Claims can be backdated for up to 12 weeks and families are encouraged to apply as soon as possible so they don’t miss out.

Nigel Huddleston, Financial Secretary to the Treasury, said: “Family time is precious, especially when you have a newborn baby, so it’s great news that HMRC is enabling parents to save time on claiming their child benefit online so they can focus on what truly matters.”

Suzanne Newton, HMRC’s Interim Director General for Transformation, said: “We know how much parents and guardians rely on Child Benefit to help with essential costs. We’ve made it far easier and quicker for families to claim this crucial help by making it digital.

“Parents and guardians can apply online when it suits them and be paid within days, not weeks. Go to GOV.UK and search ‘Claim Child Benefit online’ and follow the simple steps to apply.”

Natalie Smith, blogger, Frugal Mum, said: “No more paper forms for new parents – hurray! You can complete your application when it suits you online at GOV.UK and your Child Benefit can be backdated by up to 3 months – so don’t put it off!”

Parents or guardians can get Child Benefit if they are responsible for bringing up a child who is under 16, or under 20 if they stay in approved education or training. There is no limit on the number of children parents can claim for.

Claiming Child Benefit means that the parent will receive National Insurance credits which count towards their State Pension. It also means their child will automatically receive a National Insurance number when they turn 16 years old, which they will need for key milestones including getting their first job, taking a driving test and applying for university finance.

Tips for applying online

  • parents can claim Child Benefit from the day after a child’s birth has been registered; make sure to have the birth certificate to hand when claiming.
  • create a Government Gateway account when making a claim for Child Benefit, with a passport and other proofs of ID. This can also be done in advance of a child’s birth to save time later on. A full list of the documents needed for proof of identity can be found on GOV.UK.
  • when creating a new account, HMRC will send you an activation code via email. Once received, you can then apply for Child Benefit online.

When ready to make the claim, applicants should have the following documents to hand:

  • the child’s birth certificate
  • your bank details
  • your National Insurance number
  • your partner’s National insurance number (if you have a partner)

Families with adopted children, or whose child’s birth was registered outside the UK, can claim for Child Benefit online but will need to send additional information through the post to support their application.

Parents with children over 3 months old who have yet to claim are urged to do so as soon as possible as they can receive up to 3 months’ backdated Child Benefit. Parents with children over 6 months’ old may be required to download and print their completed claim form and send it through the post.

The government is offering help for households. Check GOV.UK to find out more about cost of living support, including help with childcare costs.  

Customers need to 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.  

Countdown for 5.7 million customers to file their tax return

With less than a month to go to the Self Assessment deadline, HM Revenue and Customs (HMRC) is urging nearly 5.7 million customers to file their tax return for the 2022 to 2023 tax year. 

HMRC data shows almost 6.5 million customers have already beaten the Self Assessment clock by filing their tax return, including 49,317 customers who used the New Year holiday to get a head start on their tax obligations: 

  • 25,593 customers filed their tax return on New Years Eve, with the most popular time being between 12:00 and 12:59, when 2,677 customers filed 
  • 127 customers saw in the New Year by filing their tax return between 00:00 and 00:59 on 1 January  
  • 23,724 customers filed on New Year’s Day, with the most filing between 15:00 and 15:59, when 2,354 customers filed

The deadline to file a tax return for the 2022 to 2023 tax year and pay any tax owed is 31 January 2024. Customers can submit their tax returns and pay any tax owed online at GOV.UK. 

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “The clock is ticking for those customers yet to file their tax return. Don’t put it off, kick start the new year by sorting your Self Assessment. Go to GOV.UK and search ‘Self Assessment’ to get started start today,” 

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. 

The quickest and easiest way customers can pay their tax bill is via HMRC’s app which is free and secure. Information about the different ways to pay, can be found on GOV.UK.

Customers who are unable to pay in full can access support and advice on GOV.UK. HMRC may be able to help by arranging an affordable payment plan, known as Time to Pay for those who owe less than £30,000. Customers can arrange this themselves online. Go to GOV.UK and search “HMRC payment plan” for more information. 

HMRC will consider a customer’s reasons for not being able to meet the deadline.Those who provide HMRC with a reasonable excuse may avoid a penalty.  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. Interest will also be charged on any tax paid late.  

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. 

No frosty surprises when you claim tax relief directly with HMRC

Every penny counts at Christmas and employees eligible to claim a tax refund on any work-related expenses are being urged to do it directly through HM Revenue and Customs (HMRC) to guarantee receiving 100% of their claim.

Whether working in hospitality or retail, taking on a seasonal second job as a delivery driver, or even becoming Santa’s elf for the month, the most straightforward way to claim – and keep – all of a tax refund is through HMRC’s online service. A claim takes just 15 minutes.

Employees can use the online service to check eligibility and get a full list of work expenses they could claim a tax refund for, including: 

  • cleaning, replacing or repairing a uniform or work clothing
  • using their own vehicle for work including business mileage
  • professional subscriptions they’ve paid for, that are needed to do their job.

Suzanne Newton, HMRC’s Interim Director General for Transformation, said: “Christmas can be an expensive time of the year and for many, it could be a good opportunity to claim a tax refund on work expenses to boost finances.

“Latest figures show the average claim is £125 a year. But the only way to guarantee receiving 100% of your eligible refund is by claiming direct through HMRC. Just search ‘tax relief for expenses’ on GOV.UK to find out more.”

Once customers have signed into the HMRC service, they just need to follow the simple step-by-step guidance to submit their claim. Those who need to set up an account can do so quickly and easily via GOV.UK.

Customers considering using an agent to make their repayment claims are likely to be charged a fee – in some cases up to 50% of the value of the claim. If the claim is then found to be ineligible, customers are liable to pay back the full amount of the refund, not the amount they finally received, so could end up out of pocket.

While going through an agent may seem like a simpler option at first, customers will need to supply the agent with the same information they would use to make the claim themselves using HMRC’s free online service.

Anyone who does, nevertheless, choose to use an agent to make a claim on their behalf should also check the small print before signing a contract – including researching the company so they understand what commission is being charged and how much of their tax refund they are likely to receive back. 

More information about how to make a work-related expense claim and what type of expense can be claimed is available at GOV.UK. 

‘Check your pay’ call to people in Christmas jobs

Seasonal staff should check their pay to make sure they are being paid correctly

Festive workers who may be missing out on the National Minimum Wage or National Living Wage are being urged to check their pay.

Seasonal staff and students on short-term contracts over the Christmas period, including those working in shops, hotels, Christmas markets, garden centres, restaurants and warehouses, are legally entitled to the same minimum rates as other workers.

HM Revenue and Customs (HMRC) is reminding all workers to check their hourly rate of pay – in particular, looking out for any unpaid working time, such as time spent opening and closing a shop, training, picking up extra shifts and working longer hours. Deductions, for things like uniforms or tools, can also reduce pay rates.

In the 2022 to 2023 tax year, HMRC identified wage arrears of £13.7 million due to more than 108,000 underpaid UK workers.

Marc Gill, HMRC’s Director Individuals and Small Business Compliance, said: “We want to make sure that all workers, including seasonal staff and students, are being paid what they are due this festive period, which is why we are reminding everyone to check their pay.

“People should check their hourly rate and look out for any deductions or unpaid working time. It could take them below the minimum wage.

“HMRC looks into every minimum wage complaint, so if you think you are being short-changed you should get in touch. Don’t lose out – report it.”

The National Minimum Wage hourly rates are currently:

  • £10.42 – Age 23 and over (National Living Wage)
  • £10.18 – Age 21 to 22
  • £7.49 – Age 18 to 20
  • £5.28 – Age under 18
  • £5.28 – 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 GOV.UK. It is an easy process that 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, people can also phone the Acas Pay and Work Rights helpline on 0300 123 1100 for confidential, free advice (Monday to Friday, 8am to 6pm). In Northern Ireland contact the Labour Relations Agency.

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

They can also contact the Acas helpline for advice.

For further information about the National Minimum Wage visit GOV.UK at:

And the Acas website.