Tag: HMRC

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.

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.