Tag: HMRC

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.   

Edinburgh businesses targeted as part of till fraud probe

More than 20 takeaways and restaurants in Edinburgh, London, St Helens and Stoke have been subject to unannounced visits as part of a crackdown on electronic till fraud.

The action by HM Revenue and Customs (HMRC) officers took place over the last four weeks, with 24 hot food takeaways and restaurants targeted.

The visits coincided with the launch of criminal investigations by HMRC’s Fraud Investigation Service, which are conducting three interviews under caution this month with individuals from Stoke and St Helens.

A small minority of takeaways and restaurants in the UK are using Electronic Sales Suppression (ESS) tools, which are software or devices that alter electronic point-of-sale records. They are used to underreport a business’s sales and consequently evade tax.

Those involved are being urged to contact HMRC now before their wrongdoing is detected. The longer a business delays in disclosing information, the higher the financial penalties will likely be. Since May 2023 the department has received more than 50 voluntary disclosures from businesses about their undeclared sales.

Marc Gill, HMRC’s Director of Individuals & Small Business Compliance, said: “ESS tools give businesses the appearance of trading legitimately, but in reality they are stealing tax that should be helping fund our vital public services.

“We have sophisticated ways of detecting this type of fraud and anyone using, supplying, making or promoting ESS can face fines of up to £50,000 or criminal prosecution.

“We urge those involved to come forward and use our disclosure facility on gov.uk rather than wait for us to contact you – it could lead to a reduction in financial penalties.”

ESS tools are usually hardware or cloud-based software that allow businesses to understate their income in various ways. Sales are put through the till as normal, but the system allows records to be manipulated – sometimes by deleting sales and linking to either domestic or offshore payment platforms.

To investigate ESS in the takeaway and restaurant sector, HMRC uses third party information, including bank account and transactional data from online food ordering platforms, to check against what has been declared.

As well as a voluntary disclosure form, HMRC also encourages anyone with information regarding ESS or any form of tax fraud to contact them online.

HMRC: Hanging on the Telephone

5 reasons Self Assessment customers don’t need to wait on hold

Nobody enjoys having to wait on hold on the phone just to resolve a simple query – and those completing Self Assessment tax returns no longer need to, with more help and advice than ever before available online.

But many people, unaware of the extent of online support now out there, are still calling instead, often with questions that could be answered via GOV.UK.

Releasing details of the top 5 reasons people call the helpline, HM Revenue and Customs (HMRC) is encouraging everyone to check online when seeking help about their tax return, to get a much quicker and easier result.

HMRC received more than 5.5 million calls to the Self Assessment helpline last year, with 1.2 million calls in the 8 weeks leading up to the 31 January deadline. Around a third of these calls were routine or simple enquiries.

The most common calls to the Self Assessment helpline, which can be checked online are:

  1. Do I need to fill in a tax return?
  2. How do I fill in my online tax return?
  3. How do I check how much tax I owe?
  4. Where’s my Self Assessment tax refund?
  5. What happens if I can’t pay my tax bill?

Using HMRC’s online services means customers can access the information they need to resolve all of these questions quickly and easily – day or night – without the need to call HMRC.

Reason for calling the helplineOnline support
Do I need to fill in a tax return?Customers can use the online tool to check if they need to complete a tax return. They will need to answer a few simple questions and it will help them decide if they need to submit one.
How do I fill in my online tax return?Customers can complete their tax return online using HMRC online services. For help filling in the return follow HMRC’s YouTube videos, and use the helpsheets, notes and forms.
How do I check how much tax I owe?HMRC works this out for customers based on their completed tax return. They can easily check and pay any tax owed via the HMRC app or via the online service.
Where’s my Self Assessment tax refund?Use the where’s my reply tool on GOV.UK to check response times based on how and when the claim was made.
What happens if I can’t pay my tax bill?If customers cannot pay any tax owed in full, they can set up a payment plan, known as a Time to Pay arrangement.Interest will be payable on any outstanding payments after the deadline.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “There is no need to spend time waiting to speak to us. Using our online services for simple queries about your tax return means you can get the help you need quickly.

“We have a wealth of free resources and support online to help you complete your tax return. Search ‘help with Self Assessment’ on GOV.UK to find out more.”

There is guidance available on GOV.UK to help customers complete their tax return for the 2022 to 2023 tax year ahead of the deadline on 31 January 2024. Anyone completing a tax return for the first time can use HMRC’s step-by-step guide which explains what they need to do.

Research undertaken by HMRC shows that 86% of its individual customers are open to engaging with HMRC digitally in the future. It is quicker and easier and has the additional wider benefit of enabling the department to focus more of its phone support on those with complex queries and those who are vulnerable.

Self Assessment customers can pay any tax owed via the free and secure HMRC app. Since April 2023, almost 100,000 customers have paid £121 million in tax via the app.

If customers cannot pay in full, HMRC wants to help them to find an affordable way to pay the tax they owe. They may be able to set up a Time to Pay arrangement and do this online without speaking to HMRC if they owe less than £30,000.

There is a new affordability assessment in the self-serve Time to Pay online service. Customers will be asked about their income and spending to calculate their disposable income and set up an affordable payment plan for them. 

For a full list of ways to pay any tax owed, visit GOV.UK.  

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.

Self Assessment payments via the HMRC app TREBLE to £121m

Almost 100,000 customers have paid £121 million using the HM Revenue and Customs (HMRC) app since April 2023, taking advantage of the quickest and easiest way to pay their Self Assessment tax bill. 

Latest figures from HMRC reveal that between April and September 2023, 97,365 customers used the app to settle their tax bill for the 2022 to 2023 tax year – more than three times the £34.6 million paid by 36,467 customers during the same period last year.  

Customers have been able to pay their Self Assessment tax bill via the free and secure HMRC app since February 2022 and there is a YouTube video demonstrating how to make a payment. 

In addition to making payments, using the app is the simplest way for Self Assessment customers to access personal details including their Unique Taxpayer Reference (UTR), National Insurance number and any PAYE information they may need to complete their tax return. 

The app has a range of features and is available to everyone, not just those who need to use the Self Assessment system.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “We all have busy lives, so it makes sense that more and more customers are choosing to access their personal tax information and pay their tax bill through the HMRC app.

“It gives them the flexibility and convenience they need – as well as peace of mind that their Self Assessment is sorted. Go to GOV.UK and search ‘HMRC app’ to find out more.” 

The deadline for customers to complete their tax return for the 2022 to 2023 tax year and pay any tax owed is 31 January 2024. 

Customers can pay their bill via the app and get a refund of any tax owed. Customers are reminded to include their bank account details on their tax return so they can get any repayment due quickly and securely. 

Customers can set up notifications to remind them when payments are due, so they don’t need to worry about missing deadlines or incurring penalties.  To set up their reminder they should select the ‘Self Assessment’ section in the app, where the option to ‘set a reminder’ is available. This will give payment date deadline options to select reminders for.  

HMRC app data also revealed that: 

  • January 2023, was the busiest month for app payments with 56,738 customers paying £125,819,051 in tax 
  • July 2023 was the second busiest month with 29,774 customers using the app to pay £54 million  

App users will need a user ID and password to access their personal information which they can set up while using the app.  

The app’s Self Assessment function is also available in Welsh. Customers can enable Welsh language options from the settings screen. 

If customers cannot pay in full, HMRC wants to help them to find an affordable way to pay the tax they owe. If customers owe less than £30,000, they may be able to set up a Time to Pay arrangement and do this online without speaking to HMRC. For a full list of ways to pay any tax owed, visit GOV.UK.  

There is a new affordability assessment in the Self Serve Time to Pay online service. Customers will be asked about their income and spending to calculate their disposable income and set up an affordable payment plan for them. 

Self Assessment customers are at increased risk of falling victim to scams and should never share their login details with anyone, including a tax agent. Check HMRC scams advice on GOV.UK. 

Tax credits recipients to receive Cost of Living Payment from today

Around 840,000 families, who receive tax credits and no other qualifying benefits, will receive their £300 autumn Cost of Living Payment from today, to help with everyday costs.

HM Revenue and Customs (HMRC) is making the payments to eligible tax credits customers across the UK between 10 and 19 November 2023.  

In addition, more than 7 million eligible UK households are receiving £300 directly from the Department for Work and Pensions (DWP) between 31 October and 19 November 2023.

This is the second of three payments totalling up to £900 for those eligible and on means-tested benefits, such as Universal Credit, Pension Credit, or tax credits, in 2023 to 2024.

Chief Secretary to the Treasury, John Glen, said: “I know Christmas can be a difficult time, which is why this £300 payment will come as a welcome boost for hundreds of thousands of families.

“But the best help we can give is halving inflation this year.”  

Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, said: “The £300 Cost of Living Payment will deliver further financial support to eligible tax credits customers across the UK. Another payment will be made by spring 2024 to those entitled to receive it.

“HMRC customers will receive the payment automatically, with no action required from them, to make this as simple as possible.”

The payment from HMRC to tax credits customers will appear on bank statements as ‘HMRC COLS’, referencing Cost of Living Support. Those receiving the payment from DWP will see the payment reference as their National Insurance number followed by ‘DWP COL’.

If customers have not received the Cost of Living Payment from HMRC between the published payment dates, but believe they are eligible, they should wait until after 20 November to contact us. This is to allow time for their bank, building society or credit union to process the payment. 

Receiving a previous Cost of Living Payment does not guarantee customers will get a future one. Customers must meet the individual eligibility criteria for each payment, as published on GOV.UK.

Payment from HMRC will be made automatically into the bank account where eligible customers receive their tax credits. They do not need to do anything to receive a payment. They do not need to contact HMRC or apply for the payment. 

Pensioner households will also receive £300 which will be paid as a top up to those eligible for the Winter Fuel Payment in November and December. Combined with the one-off Cost of Living Disability Payment earlier this year, some households will receive £1,350 in total.

Customers should beware of scams targeting Cost of Living Payments. If someone contacts them about this payment saying they are from HMRC or DWP, it might be a scam. People can check advice on spotting scams by visiting GOV.UK and searching ‘HMRC phishing and scams’. They can also check on GOV.UK that any contact is genuinely from HMRC.

Marriage Allowance: Find out if you could be better off in just 30 seconds

Couples who are married or in a civil partnership are being urged by HM Revenue and Customs (HMRC) to spend just 30 seconds to see if they can claim Marriage Allowance and boost their finances by up to £252 a year.

By using HMRC’s online Marriage Allowance calculator during Talk Money Week, couples can find out instantly if they are eligible. Couples who may be unaware that they could claim include those where one partner is working and the other has income less than their personal allowance of £12,570, including those who: 

  • have retired
  • have given up work to care for children or elderly relatives
  • are unable to work because of long term health conditions
  • have a part time job
  • have a low paid job

It is quick and easy to claim Marriage Allowance for free via GOV.UK. Applying directly on GOV.UK means couples will receive 100% of the tax relief due.

Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, said:  “The Marriage Allowance calculator helps couples to find out in seconds how much they stand to benefit. Check today and claim right away. It’s a quick and easy process that’s worth up to £252 a year.

“Search ‘Marriage Allowance’ on GOV.UK for more information.”

With around 68 per cent of people in their sixties married or in Civil Partnerships, many people in this age group may not realise they can claim Marriage Allowance if they have retired and their partner is still working.

UK Men’s Sheds, a charity which brings together retired men to meet at community workshops, is flagging this with their members.

Charlie Bethel, Chief Officer, UK Men’s Sheds, said: “If you have retired and your partner is still working, you may not realise that you could apply for Marriage Allowance.

“As a charity that brings retired men together, we are urging our members throughout the UK to invest the 30 seconds of time it takes to find out if they can claim.”

Marriage Allowance saves couples money by allowing the lower or non-earner to reduce the amount of tax their partner pays. Most people have a Personal Allowance, normally £12,570 – the amount of income they do not have to pay tax on. Marriage Allowance lets the lower earner transfer £1,260 of their Personal Allowance to their husband, wife or civil partner.

This can reduce their tax by up to £252 annually. If eligible, couples can also backdate their claim for the previous four tax years and receive a lump-sum payment worth more than £1,000.

To benefit from the tax relief in Scotland, one partner must have income less than £12,570 and the higher earning partner’s income must be between £12,571 and £43,662.

https://youtu.be/FEXgvuPdIEg

HMRC has produced a YouTube video to explain who is eligible and how to apply.

Help to Save customers receive £146 million in bonus payments

Help to Save customers have received £146 million in bonus payments since the scheme launched in September 2018 and HM Revenue and Customs (HMRC) is urging individuals in Scotland to take advantage of the generous savings scheme this World Savings Day (31 October).

Help to Save is the UK Government savings scheme for low-income earners and offers savers a 50% bonus payment worth up to £1,200 over a maximum of 4 years.  

Latest figures reveal that 31,600 customers in Scotland opened a Help to Save account between September 2018 and March 2023, with more than £25.6 million paid into accounts during that time.

It takes less than 5 minutes to open an account. Customers can check eligibility and open an account on GOV.UK or via the HMRC app.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Hundreds of thousands of people are benefitting from Help to Save.

“It’s a great way of saving whatever you can and the UK Government will top up your savings by 50%. It’s quick and easy to apply online or via the HMRC app. Just search ‘Help to Save’ on GOV.UK to find out more and apply today.”

HMRC has prepared a video on YouTube to help customers find out more about Help to Save. 

Customers can open a Help to Save account if they are receiving:

  • Working Tax Credit
  • Child Tax Credit  and are entitled to Working Tax Credit 
  • Universal Credit and they (with their partner, if it is a joint claim) had take-home pay of £722.45 or more in their last monthly assessment period

Savers can deposit between between £1 and £50 each month. They will earn an extra 50 pence for every £1 saved and bonuses are paid in the second and fourth years of the account being opened. The bonus payment applies to the highest amount saved within the period. Savers who deposit the maximum amount of £2,400 will receive a bonus of £1,200 from the UK Government.

Nearly 383,000 account holders across the UK have made a deposit into their accounts and the average monthly deposit is £48. More than 90% of savers invest the maximum £50 each month. They can make as many deposits they like each month via debit card, bank transfer or standing order. Money can be withdrawn at any time, although this may affect their 50% bonus payments.

Customers can easily manage their savings account online or through the HMRC app. They can check their balance, view savings and bonus details, find out when they’ll be paid a bonus, read any messages, set up a standing order or make withdrawals.

Victoria Todd, Head of the Low Incomes Tax Reform Group, said: “For those who are able to take part, the Help to Save account is a very attractive savings scheme, especially when the saver is able to maximise their bonuses.

“They can do this by paying in the maximum amount each month and making no withdrawals. Those who are eligible can still get bonus payments, even if they can’t save the maximum. That is why we recently welcomed the extension of the scheme to April 2025.” 

 video on YouTube

The UK Government is offering Help for Households. Check GOV.UK to find out what cost of living support individuals could be eligible for.

100 days to go to Self Assessment deadline

Self Assessment customers have just 100 days left to submit their tax return ahead of the deadline on 31 January 2024.

And with the clock ticking down, customers can find various types of help from HM Revenue and Customs (HMRC) at the click of a mouse – from webinars to step by step guides.

Anyone who needs support to complete their return for the 2022 to 2023 tax year can access the online help available on GOV.UK. It explains how to access HMRC’s services and ask for help, without having to call us.

Completing a tax return sooner means that customers can find out what they owe and can work out how to pay between now and the deadline.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “My advice for anyone completing their Self Assessment is to get prepared and, if they need extra support, to access HMRC’s free online help and resources. Search ‘Self Assessment’ on GOV.UK to find out more.”

Customers can pay through the HMRC app. If customers cannot pay in full, HMRC wants to help them to find an affordable way for them to pay the tax they owe. 

If  customers owe less than £30,000, they may be able to set up a Time to Pay arrangement and do this online without speaking to HMRC.

For a full list of ways to pay any tax owed, visit GOV.UK.

If anyone thinks they no longer need to complete a Self Assessment tax return for the 2022 to 2023 tax year, they 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.

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.

HMRC: Scams warning for 12 million Self Assessment customers

Self Assessment customers are urged to be on the lookout for scam texts, emails and phone calls from fraudsters.

This warning comes as HM Revenue and Customs (HMRC) received more than 130,000 reports about tax scams in the 12 months to September 2023, of which 58,000 were offering fake tax rebates.

With around 12 million people expected to submit a Self Assessment tax return for the 2022 to 2023 tax year before the 31 January 2024 deadline, fraudsters will prey on customers by impersonating HMRC.

The scams take different approaches. Some offer a rebate; others tell customers that they need to update their tax details or threaten immediate arrest for tax evasion.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “HMRC is reminding customers to be wary of approaches by fraudsters in the run up to the Self Assessment deadline. Criminals are great pretenders who try and dupe people by sending emails, phone calls and texts which mimic government messages to make them appear authentic.

“Unexpected contacts like these should set alarm bells ringing, so take your time and check HMRC scams advice on GOV.UK.”

Customers can report any suspicious communications to HMRC:

  • forward suspicious texts claiming to be from HMRC to 60599
  • forward emails to phishing@hmrc.gov.uk
  • report tax scam phone calls to HMRC on GOV.UK    

HMRC works to protect the public from scammers. In the 12 months to September 2023, HMRC has responded to 60,000 reports of phone scams alone and got 25,000 malicious web pages taken down.

Customers do not need to wait until 31 January before filing their tax return, they can submit it before then but do not have to pay until the deadline, unless they choose to. Filing earlier allows them to find out what they owe sooner or if they are owed money, get their refund.

Help and support is available on GOV.UK to help customers complete their return, there is no need to call us. HMRC has a wide range of online resources to help customers file a tax return including a series of video tutorials on YouTube and help and support guidance on GOV.UK alongside HMRC digital assistant, HMRC app, community forums and the help and support email service.