Tag: HMRC

Almost 250,000 early birds file Self Assessment in first week

Almost 250,000 Self Assessment customers filed their 2022 to 2023 tax return during the first week of the tax year, HM Revenue and Customs (HMRC) has revealed.

The number of customers choosing to file on the first day of the new tax year (6 April) has increased in recent years. Those opting to file in the first week of the new tax year has increased by nearly 100,000 customers since 2018.

The data, which examined numbers of customers who filed between 6 and 12 April, also revealed the most popular day to file a tax return during that week was 6 April and that Self Assessment customers enjoy a day of rest with the Sunday being the least popular day to file.

The increase in early bird filers means more customers are benefitting from filing their tax return for the 2022 to 2023 tax year well ahead of the deadline on 31 January 2024. Those who file early have more control over their financial affairs can take advantage of finding out what they owe and budget for it. If they are owed money, they can get their refund much sooner.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Our figures show more and more customers are benefitting from filing early which means they can relax knowing their tax return is complete, know what they owe and can budget.

“For those who haven’t yet thought about their tax return, go to GOV.UK, search ‘Self Assessment’ to get started.”

If customers are unsure whether they need to complete a tax return, they can check if they need to complete a tax return by using the free online tool on GOV.UK.

If customers need support to file a  tax return, there is no need to ring as HMRC has a wide range of resources online including a series of video tutorials on YouTube, help and support on GOV.UK, as well as a webchat service.

Customers who have already filed their tax return can now take their time to plan to pay in the best way that suits them and their cash flow which may mean setting up a budget payment plan to manage their bill to pay before the deadline.

Customers who file early will also find out if they are owed money sooner and can go ahead and claim the refund once their tax return is submitted and processed. Customers can also check if they are due a refund in the HMRC app once they have filed their return.

If customers think they no longer need to complete a Self Assessment tax return for the 2022 to 2023 tax year, they should tell HMRC – so that HMRC can issue a withdrawal notice – before the deadline on 31 January 2024 to avoid any penalties. 

HMRC has produced two videos explaining how customers can go online and stop Self Assessment if they are self-employed and those who are not self-employed.

It is important that customers let HMRC know of any changes to personal details or circumstances, such as a new address or name, or if they have stopped being self-employed or their business has closed. Don’t assume someone else will update HMRC, customers can make changes via 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.

Filing figures for the first week of the tax year

Year201820192020202120222023
Filing date17/1818/1919/2020/2121/2222/23
6 April36,939*35,25596,51963,76866,49277,517
7 April*18,145*22,53648,23738,19237,06731,715
8 April*15,20132,60239,67430,97128,645*18,896
9 April23,98328,76534,64125,119*18,989*14,377
10 April22,06024,42624,391*19,561*17,19029,284
11 April20,52222,516*15,904*17,27731,38138,006
12 April19,39021,126*11,55028,02328,97336,415
Total156,240187,226270,916222,911228,737246,210

*Weekend

These figures do not include paper returns or amendments for previous years.

HMRC: Scottish taxi driver tax checks come into force

Scotland’s 29,000 taxi and private hire drivers need to complete HM Revenue and Customs (HMRC) tax checks when renewing their operating licence, starting from today (2 October 2023).

The checks have been introduced to promote tax compliance within the industry and make it fairer for the vast majority of drivers who already pay their taxes correctly.

Councils will administer the process in Scotland, which involves making sure drivers have completed their tax check before their licence applications can be considered.

The checks will also be required for those in Scotland renewing their licence to operate a booking office or a scrap metal site, plus those who are metal dealers.

Marc Gill, Director of Individuals and Small Business Compliance, HMRC, said: “While most taxi drivers in Scotland pay their taxes accurately and on time, we want to level the playing field and tackle the small minority who don’t.

“The hidden economy is estimated to cost the UK Government £2 billion in unpaid taxes, which deprives funds for the vital public services we all rely on.

“By linking tax compliance to licence renewal, the government hopes to discourage participation in the hidden economy and encourage drivers to fulfil their tax obligations.”

The checks were rolled out in England and Wales in April 2022, where more than 120,000 people have already successfully gone through the process.

When renewing their licence, drivers will need to use a Government Gateway account to complete the tax check on GOV.UK, which is quick, simple and straightforward.

After answering a few questions about their tax registration, HMRC will provide applicants with a tax check code. This code must be given to the local council before they can proceed with the licence renewal application.

Scotland-council-taxi-private-hire-licence-numbersDownload

HMRC: 420,000 young people urged to claim their cash

Almost 430,000 18-21 year olds with an unclaimed Child Trust Fund, worth an average of £2,000, are being urged by HM Revenue and Customs (HMRC) to claim their cash as part of UK Savings Week (18 to 24 September 2023). 

Child Trust Funds are long-term, tax-free savings accounts and were set up for every child born between 1 September 2002 and 2 January 2011, with the UK Government contributing an initial deposit of at least £250. Funds can be withdrawn once the account matures when the child turns 18. 

A recent student survey, conducted by UCAS, asked first and second year university students about Child Trust Funds and the results showed that they were most interested to know how much money was in their account (43%) and how to claim it (32%). The survey also revealed 60% of students got their information about Child Trust Funds from their parents. 

Young adults and parents can search on GOV.UK to find out where their Child Trust Fund account is held.

Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive, said: “Many 18-21 year olds are starting out in first jobs or apprenticeships, starting university or moving into their first home and their Child Trust Fund is a pot of money with their name on. 

“I would encourage young people to use the online tool to track it down or, for parents of teenagers, to speak to them to ensure they’re aware of their Child Trust Fund. It could make a real difference to their future plans.” 

There are currently 5.3 million open Child Trust Fund accounts. Young people aged 16 or over can take control of their own Child Trust Fund, although the funds can only be withdrawn once they turn 18. More than 500,000 matured Child Trust Fund accounts have been claimed or transferred into an ISA since the oldest children on the scheme turned 18 in September 2020.  

Families can continue to pay in up to £9,000 a year tax-free into a Child Trust Fund until the account matures. The money stays in the account until the child withdraws or reinvests it into another account. 

The UCAS survey revealed that 74% of respondents were aware of Child Trust Funds.  

Further findings include:  

  • more men (75%) were aware of Child Trust Funds compared to 73% of women 
  • 78% of 19 year olds were aware of Child Trust funds compared to 71% of 20 to 21 years olds 
  • of the people who had not yet claimed their Child Trust Fund, 76% of respondents were likely to take steps to learn more about how to withdraw it. 

Sharon Davies, CEO of Young Enterprise, said: “We would encourage all young people to investigate if they have money which is unclaimed in a Child Trust Fund and to use it wisely.

“A disproportionate amount of the money is unclaimed by young people from disadvantaged backgrounds who are the very people who would benefit most from these funds. The investment could be placed into an adult ISA or put towards driving lessons, education or starting a business.  

“The money in a Child Trust Fund has the potential to be life changing and the lack of knowledge about them shows the importance of financial education and financial planning from a young age”. 

The UK Government is offering help for households. Check GOV.UK to find out what cost of living support you could be eligible for. 

It’s time to register for Self Assessment, says HMRC

HM Revenue and Customs (HMRC) is reminding anyone who is new to Self Assessment for the 2022 to 2023 tax year that they have just two weeks until 5 October to tell HMRC and register.

New Self Assessment customers could be someone who has set up a side hustle to earn money in addition to their PAYE job or disposed of cryptoassets; they may be newly self-employed or a new landlord renting out property.  Whatever the circumstances, if a customer has any income that they have not already paid UK tax on, they need to register for Self Assessment.

Customers can use HMRC’s online checking tool on GOV.UK to quickly assess whether they will need to complete a tax return. And they can use the step-by-step guide to check what they need to do to file their first Self Assessment tax return.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “If you are new to Self Assessment and unsure how the process works – HMRC is here to help. We have a wealth of resources and guidance available on GOV.UK to help customers register, sign up to the online services and complete their tax return.

“We want to help customers get their tax right first time, just search ‘Self Assessment’ on GOV.UK to find out more.”

Customers can register for Self Assessment on GOV.UK. They will then receive their Unique Taxpayer Reference, which they will need when completing their return.

The deadline for customers to file their tax return online and pay any tax owed for the 2022 to 2023 tax year is 31 January 2024. And last year, 96% of customers filed their return online.

Filing online means customers don’t have to complete it all at once, they can save their progress and finish it later and have that added reassurance that HMRC has received their form when they press submit.

HMRC has a wide range of resources to help customers file a tax return including a series of video tutorials on YouTube and help and support guidance on GOV.UK. HMRC has produced 2 videos to help customers registering online for Self Assessment these are for those who are self-employed and those who are not self-employed.

If customers think they no longer need to complete a Self Assessment tax return for the 2022 to 2023 tax year, they should tell HMRC before the deadline on 31 January 2024 to avoid any penalties or needing to complete a tax return. 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: Families urged to boost their back-to-school budget with Tax-Free Childcare

Now the new school term has started, HM Revenue and Customs (HMRC) is reminding families to open a Tax-Free Childcare account today to save up to £2,000 per child on their yearly childcare bills. 

Families can use their Tax-Free Childcare account to pay for any approved childcare including holiday clubs, breakfast and after school clubs, child minders and nurseries.    

The scheme provides working families, with children up to the age of 11, or 16 if their child has a disability, up to £2,000 a year per child or £4,000 a year if their child is disabled. For every £8 paid into a Tax-Free Childcare account, families automatically receive the UK Government top up of £2. Families can save up to £500 every three months for each child or £1,000 if their child is disabled. 

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Arranging childcare can be costly for working families. Tax-Free Childcare offers financial help so families can save on the cost of childcare. Search Tax-Free Childcare on GOV.UK and sign up online today.” 

Opening a Tax-Free Childcare account online is straightforward and can be done in about 20 minutes. Money can be deposited at any time, 365 days a year, to be used straight away or left in the account and used whenever it is needed. Unused money in the account can be withdrawn at any time.   

Go to GOV.UK to register and start saving today.

The UK Government is offering help for households. Check GOV.UK to find out what cost of living support is available, including help with childcare costs.   

HMRC: Claiming Child Benefit for teenagers studying or training after completing their Nationals

Parents have until 31 August to tell HM Revenue and Customs (HMRC) that their 16-year-old is continuing their education or training, if they wish to continue receiving Child Benefit.

Many teenagers who recently received their Nationals exam results will be considering their future and whether to stay on in education. Child Benefit payments stop on 31 August after a child turns 16, but parents can extend their claim if their child is continuing in approved education or training.

It is easy for parents to update their Child Benefit record. They can use the online service on GOV.UK or the HMRC app to tell HMRC about their child’s plans.

HMRC recently wrote to parents about extending their Child Benefit claim. The letter included a QR code which, when scanned, directs them to GOV.UK to update their claim online. Any changes will be applied to their Child Benefit claim immediately.

Child Benefit will continue to be paid for children who are studying full time which can include:

  • Highers
  • International Baccalaureate
  • home education – if it started before their child turned 16 or after 16 if they have special needs

Child Benefit will also continue for children who are studying on an unpaid approved training course through the ‘No One Left Behind programme’.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Child Benefit can provide financial support to families, so make sure you don’t miss out if your teenager is still eligible.

“You can quickly and easily extend your claim online or via the HMRC app, just search ‘Child Benefit when your child turns 16’ on GOV.UK.”

Parents will need a Government Gateway user ID and password to use HMRC’s online services. They will need their National Insurance number or postcode and 2 forms of ID to register on GOV.UK.

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

HMRC: Do you need to complete a Self Assessment tax return this year?

If someone has had a change in circumstances, then they might need to complete their first ever Self Assessment tax return for the 2022 to 2023 tax year, HM Revenue and Customs (HMRC) is reminding people.  

Taxpayers can use the quick and easy free online checking tool on GOV.UK and register with HMRC by 5 October if they do need to self-assess. Taxpayers can also use it if they think they may not need to complete one this year too.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said:  “It is important that taxpayers check if they need to complete a Self Assessment tax return so they can pay the right amount of tax owed and avoid penalties for not filing a return.

“It is quick and easy to check by using the interactive tool on GOV.UK – there is no need to ring us.” 

Taxpayers may need to complete a tax return if they:

  • are newly self-employed and have earned more than £1,000  
  • have multiple sources of income  
  • have received any untaxed income, for example earning money for creating online content  
  • earn more than £100,000 a year 
  • earn income from property that they own and rent out 
  • are a new partner in a business partnership 
  • are claiming Child Benefit and they or their partner have an income above £50,000
  • receive interest from banks and building societies (more than £10,000) 
  • receive dividends in excess of £10,000 
  • need to pay Capital Gains Tax  
  • are self-employed and earn less than £1,000 but wish to pay Class 2 NICs voluntarily to protect their entitlement to State Pension and certain benefits 

The online checking tool can also be used by those who may no longer need to do Self Assessment, including if they: 

·         gave up work or retired 

·         are no longer self-employed 

·         earn below the minimum income thresholds 

If taxpayers no longer think they need to complete a Self Assessment tax return for the 2022 to 2023 tax year, they should tell HMRC before the deadline on 31 January 2024 to avoid any penalties. 

Taxpayers can register for Self Assessment on GOV.UK. Once registered, they will receive their Unique Taxpayer Reference, which they will need when completing their tax return. 

HMRC has wide range of resources to help taxpayers file a tax return including a series of video tutorials on YouTube and a new  step by step guide. for anyone that is filing for the first time.   

Taxpayers 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.  

One week left to renew your tax credits, HMRC warns

Almost 172,000 tax credits customers have until 31 July to renew their annual claim and HM Revenue and Customs (HMRC) is urging them to not miss out.

Customers who received a renewal pack with a red line across the first page and the words ‘reply now’ must respond to HMRC or risk having their payments stopped. Customers whose packs had a black line across the first page and the words ‘check now’ only need to update HMRC if their details have changed.

‘Reply now’ customers must tell HMRC about their current circumstances. Life changes HMRC needs to know about include:

  • Relationship changes, including marriage or separation
  • Changes to the cost of childcare
  • Your child leaves home
  • Working hours fall below 30 hours a week

The full list of changes that could affect customers’ tax credits is on GOV.UK. ‘Reply now’ customers must respond to the request for information even if there have been no changes to their circumstances.

The quickest and easiest way for customers to renew their tax credits is online at GOV.UK or via the HMRC app.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “We know tax credits offer vital financial support for our customers so it is important that you renew by the deadline on 31 July.

“It is quick and easy to renew online at GOV.UK or using the HMRC app, just search ‘manage my tax credits’ on GOV.UK.”

Help and support is available on GOV.UK for customers renewing claims and HMRC has released a video to explain how tax credits customers can use the HMRC app to view, manage and update their details.

Criminals use tax credits renewals and other deadlines in scams to attempt to trick people into sharing their banking or other personal details. Typical scam examples include emails or texts claiming an individual’s details aren’t up to date and that they risk losing out on payments that are due to them.

If a phone call, text or email is unexpected, do not give out private information or reply, and do not download attachments or click on links. 

HMRC is also warning people not to share their login details with anyone else. Visit GOV.UK for more information on how to report a scam or suspicious activity.

By the end of 2024, tax credits will be replaced by Universal Credit. Customers who receive tax credits will receive a letter from the Department for Work and Pensions telling them when to claim Universal Credit, or from the Department for Communities if they live in Northern Ireland.

It is important that customers claim by the deadline in the letter to continue receiving financial support as their tax credits will end even if they decide not to claim Universal Credit.

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

Stronger powers to combat illicit tobacco come into force

New sanctions come into effect for those found selling illicit tobacco products

More than 27 million illicit cigarettes and 7,500kg of hand-rolling tobacco were seized under Operation CeCe in its first 2 years, HM Revenue and Customs (HMRC) and National Trading Standards have revealed.

This comes as new powers come into force from 20 July, which could see penalties of up to £10,000 for any businesses and individuals who sell illicit tobacco products. The sanctions will bolster the government’s efforts to tackle the illicit tobacco market and reduce tobacco duty fraud.

The new powers will also see Local Authority Trading Standards given the ability to refer cases to HMRC for further investigation. HMRC, where appropriate, will administer the penalties and ensure the appropriate sanction is applied and enforced.

Operation CeCe is a joint HMRC-National Trading Standards operation which has been working to seize illicit tobacco since January 2021.

Nis Bandara, HMRC’s Deputy Director for Excise and Environmental Taxes, said: “Trade in illicit tobacco costs the Exchequer more than £2 billion in lost tax revenue each year. It also damages legitimate businesses, undermines public health and facilitates the supply of tobacco to young people.

“These sanctions build on HMRC’s enforcement of illicit tobacco controls, will strengthen our response against those involved in street level distribution, and act as a deterrent to anyone thinking that they can make a quick and easy sale and undercut their competition.”

Kate Pike, Lead Officer for the Chartered Trading Standards Institute, said: “Trading Standards Officers across the country work with colleagues in Public Health to reduce the harm from smoking and with enforcement partners to disrupt criminality in our communities.

“We welcome this addition to our toolkit of measures to tackle illegal tobacco, ensuring that those who seek to profit from supplying these products face substantial penalties for doing so, and their ability to continue to trade is severely impacted.”

Lord Michael Bichard, Chair of National Trading Standards, said: “The illegal tobacco trade harms local communities and affects honest businesses.

“Through Operation CeCe, we have removed 27 million illegal cigarettes and 7,500kg of hand-rolling tobacco from the supply chain and we welcome these new measures to clamp down further on the illicit tobacco trade.”

HMRC will launch a new illicit tobacco strategy later in the year which will replace ‘From Leaf to Light’, which has been the guiding strategy for tackling the illicit tobacco market since 2015.

Further information on the new penalties