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 Unused money in the account can be withdrawn at any time.
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.
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:
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.
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.
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.”
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.
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.
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.
Tax credits customers have a month to renew their claim or risk having their payments stopped, HM Revenue and Customs (HMRC) has warned.
The annual deadline is 31 July and more than 300,000 customers who received a renewal pack with a red line across the first page and the words ‘reply now’ still need to confirm their circumstances for the current tax year to continue receiving payments.
Circumstances that could affect tax credits payments include changes to living arrangements, childcare, working hours or a change in income.
Myrtle Lloyd, HMRC’s Director-General for Customer Services, said: “Please act now to meet the 31 July deadline for renewing your tax credits or your payments could stop.
“There is no need to call us, it is quick and easy to renew via GOV.UK or the HMRC app. For details on how to renew, search ‘manage my tax credits’ on GOV.UK.”
HMRC sent out two types of renewal packs to 1.5 million customers between 2 May and 15 June 2023. These were:
· ‘reply now’ packs had a red line across the first page and the words ‘reply now’. Customers must confirm their circumstances to renew their tax credits
· ‘check now’ packs had a black line across the first page and the words ‘check now.’ Customers whose details are correct do not need to do anything and their tax credits will be automatically renewed
Criminals do 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.
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 (DWP) telling them when to claim Universal Credit. 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.
Today marks one month until the biggest Alcohol Duty reforms in 140 years come into effect.
On 1 August 2023, the Alcohol Duty system will become much simpler, taxing all alcoholic drinks based on their alcohol by volume (ABV).
This replaces the current Alcohol Duty system, which consists of four separate taxes covering beer, cider, spirits, wine and made-wine.
It will make the system fairer and responsive to new products entering the market as consumer tastes evolve.
Small producers, including pubs and restaurants, will benefit from reduced rates on qualifying products, such as draught beer and cider.
The new system reflects the UK Government’s commitment to tax simplification, helping to foster the right conditions for businesses to prosper and the economy to grow – one of the Prime Minister’s five priorities.
Exchequer Secretary to the Treasury Gareth Davies said: “Because we left the EU we can make sure our alcohol duty system works for us. From next month the whole system will be simpler – the duty will reflect the strength of the drink.
“We will also protect pubs and brewers with our Brexit Pubs Guarantee keeping Draught Duty down, and a new Small Producer Relief.”
Jonathan Athow, Director General of Customer Strategy & Tax Design, HMRC, said: “After listening to feedback from industry, economists, consumer organisations, public health groups and many business owners, the new Alcohol Duty system will be based on the founding principle of taxing alcoholic products by strength, ensuring consistency across the board for the first time.
“The new system will support the government’s public health objectives, and provide extra support to small producers, pubs and the hospitality sector.”
The new system will create six standardised alcohol duty bands across all types of alcoholic products and apply to all individuals and businesses involved in the manufacture, distribution, holding and sale of alcoholic products across the UK.
These reforms will replace and extend the existing Small Brewers Relief with Small Producer Relief. This means that all small businesses that produce any alcoholic products with an ABV of less than 8.5% will be eligible for reduced rates on qualifying products, if they produce less than 4,500 hectolitres per year.
To support the hospitality industry, and recognising the vital role played by pubs in our communities, there will also be a reduced rate for draught products – known as Draught Relief. This will reduce Alcohol Duty on qualifying beer and cider by 9.2%, and by 23% on qualifying wine-based, spirits-based and other fermented products, sold in on-trade premises such as pubs and restaurants.
The reforms will mean that every pint in every pub across the UK will pay less duty than their supermarket equivalent, in line with the UK Government’s Brexit Pubs Guarantee.
To support wine producers and importers in moving to the new method of calculating duty on their products, temporary arrangements will be in place for 18 months from 1 August 2023 until 1 February 2025.
To support innovation and responsible drinking, low strength drinks below 3.5% ABV will be charged at a new lower rate of duty. In making these changes, the UK Government aims to encourage product innovation and ensure the Alcohol Duty system works for business and consumers.
More information on the new Alcohol Duty rates and reliefs can be found on GOV.UK.
Those involved in the production of smaller quantities of alcoholic products, can check the reduced rates of duty that apply to them by using the Small Producer Relief calculator. HMRC is also running a series of live webinars throughout July 2023 and in the months ahead to further support the alcohol industry through these changes.
More details on changes to Alcohol Duty can be found on GOV.UK
The new Alcohol Duty system will tax products by Alcohol By Volume (ABV) per litre of alcohol. Stronger alcoholic products will attract higher duty rates than lower strength products. From 1 August 2023 the new rates are:
Table 1
Alcoholic strength of alcoholic product
Rate of duty per litre of alcohol in the product
Less than 1.2%
Nil
At least 1.2% but less than 3.5%
£9.27
At least 3.5% but less than 8.5%
See Table 2
At least 8.5% but not exceeding 22%
£28.50
Exceeding 22%
£31.64
Table 2
Description of alcoholic product (of an alcoholic strength of at least 3.5% but less than 8.5%)
Rate of duty per litre of alcohol in the product
Still ciderSparkling cider of an alcoholic strength not exceeding 5.5%Spirits, wine, and other fermented productsSparkling cider of an alcoholic strength exceeding 5.5%
£9.67
Beer
£21.01
Spirits, wine, and other fermented productsSparkling cider of an alcoholic strength exceeding 5.5%
£24.77
Wine between 11.5% and 14.5% ABV will be treated as if it is 12.5% ABV for the purposes of calculating the charge to alcohol duty from 1 August 2023 until 1 February 2025.
Further details on the new rates can be found on GOV.UK
The Small Producer Relief is available to those who produce less than 4,500 hectolitres (hL) of alcohol per year. More detail about this relief can be found here (insert GOV.UK link) GOV.UK
Reduced rates for draught products, also known as Draught Relief, will apply to products under 8.5% ABV, packaged in containers of at least 20 litres and which incorporate or are designed to connect to a qualifying dispense system. More detail can be found on GOV.UK
A new penalty is being introduced to prohibit decanting alcoholic products subject to reduced rates for draught products – also known as Draught Relief. This aims to reduce misuse of the relief.
The temporary wine arrangements, in place for 18 months from 1 August 2023 to 1 February 2025, will treat all wine between 11.5% and 14.5% ABV as if it is 12.5% ABV for the purposes of calculating the alcohol duty. More information on this can be found on GOV.UK
Changes to the approval as an alcohol producer and new arrangements for duty returns and payments are scheduled to take effect from late 2024. Further detail on the timing of these changes will be announced at a later date. HMRC intends to provide at least 12 months’ notice so that businesses have time to prepare.
The changes to the Alcohol Duty system follows a commitment made at Autumn Budget 2021.
HMRC has issued a warning to tax credits customers, who are renewing their tax credits claims, to be alert to scammers trying to steal their information
Tax credit claimants should be on their guard against fraudsters, as HM Revenue and Customs (HMRC) warns of the latest tactics being employed by scammers.
HMRC has issued a new alert, providing details of a number of new scams reported that aim to trick people into handing over money or personal information. Criminals use deadlines – like the tax credits renewal deadline on 31 July – to target their victims and the department is warning around 1.5 million tax credits customers to be alert to scams that mimic government communications to make them appear genuine.
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
emails or texts claiming that a direct debit payment hasn’t ‘gone through’
phone calls threatening arrest if people don’t immediately pay fake tax owed
claims that the victim’s national insurance number has been used in fraud
emails or texts offering spurious tax rebates or bogus grants or support
Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Tax scams come in many forms and we’re urging customers to be alert to the tactics used by fraudsters and never to let yourselves be rushed.
“If someone contacts you saying they’re from HMRC and asks you to give personal information or urgently transfer money, be on your guard. Search ‘HMRC scams’ advice on GOV.UK to find out how to report scams and help us fight these crimes.
“Scam messages can be convincing, and individuals may be pressured into make rushed decisions. HMRC will NEVER ring anyone out of the blue making threats or asking them to transfer money.”
According to the National Cyber Security Centre, HMRC was the third most spoofed government body in 2022, behind the NHS and TV Licensing. HMRC is also urging tax credits customers to be alert to misleading websites or adverts asking them to pay for government services which are free, often by charging for a connection to HMRC helplines.
HMRC is currently sending out tax credits renewal packs to customers and is reminding anyone who has not received theirs to wait until after 15 June before contacting HMRC.
HMRC has a video explaining how tax credits customers can use the HMRC app to view, manage and update their details:
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 (DWP) telling them when to claim Universal Credit.
It is important that customers claim by the deadline shown 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.
HMRC is also warning people not to share their HMRC login details with anyone else. Someone using these could steal from the account owner or make a fraudulent claim in their name and leave customers having to pay back the full value of any fraudulent repayment claim made on their behalf.
Tax-Free Childcare has saved 38,495 families in Scotland on their childcare costs during the 2022 to 2023 tax year, an increase of more than 9,300 from the previous year according to the latest statistics released by HM Revenue and Customs (HMRC) today (24 May 2023).
With thousands more families benefitting from the UK Government top up year on year, HMRC is reminding eligible working families of the financial support available to pay for approved childcare including holiday clubs, breakfast and after school clubs, child minders and nurseries. Last year, £533 million in government cash was shared by families across the UK who saved money on their childcare bills.
Working families, with children up to the age of 11, or 16 if their child has a disability, can save 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 an additional government top up of £2. Families can save up to £500 every 3 months for each child or £1,000 if their child is disabled.
This is one of many ways the UK Government is easing cost of living for people across the country, whilst taking action to halve inflation this year which is currently adding pressure to household budgets.
Victoria Atkins, The Financial Secretary to the Treasury, said: “While thousands more working families are benefitting from Tax-Free Childcare, which is making a real difference to their childcare bills, many more are missing out on the help they’re entitled to.
“Parents should check their eligibility and apply online, the top-up could make a big difference to working families at a time they need it most.”
Myrtle Lloyd, HMRC’s Director General for Customer Services, said:
“Tax-Free Childcare is a flexible benefit for families, allowing them to save towards the cost of childcare throughout the year and use when they need it. It can be a real boost to the household budget of working families. Search ‘Tax-Free Childcare’ on GOV.UK and sign up today.”
More than one million families could be eligible for Tax-Free Childcare. Families who haven’t signed up should check their eligibility and sign up to start saving today.
Opening a Tax-Free Childcare account is straightforward and can be done online in about 20 minutes. Money can be deposited at any time at any time of the year to be used straight away, or whenever it is needed. Unused money in the account can be withdrawn at any time.
Help to Save – the UK Government savings scheme for low-income earners, which offers a 50% bonus payment worth up to £1,200 over 4 years – has been extended to April 2025, HM Revenue and Customs (HMRC) has confirmed.
More than 359,200 customers have opened savings accounts since its launch in September 2018 and an additional 3 million individuals could still benefit from the savings scheme as a result of the extension.
Help to Save is a savings scheme for low-income earners. Savers can deposit between £1 and £50 a month into their account and will receive a government bonus– even if money has been withdrawn.
Savers will earn a 50 pence bonus for every £1 saved and the bonus payments are paid in the second and fourth years. This means that someone saving £2,400 – the maximum amount they could deposit over four years – would receive a £1,200 bonus from the government, paid directly into their bank account.
Setting up a Help to Save account online is quick and easy to do, and takes less than 5 minutes to sign up.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said:“Help to Save can encourage positive saving habits – no matter what you can afford to save – and the 50% government bonus payment can help savers when they need it most.
“It is quick and easy to apply online or via the HMRC app, just search ‘help to save’ on GOV.UK to find out more.”
Andrew Griffith, Economic Secretary to the Treasury, said:“Millions of people could benefit from a boost to their savings through Help to Save and thanks to our Spring Budget reforms the scheme has been extended until 2025.
“Whatever amount you can save will trigger a top up from the Government, so take advantage and apply today.”
Individuals can open a Help to Save account if, when they apply, 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.
HMRC has prepared a video on YouTube to help customers find out more about Help to Save.
Accounts are open for a maximum of 4 years and individuals can make deposits as many times as they like by debit card, bank transfer or standing order, without going over the monthly saving limit of £50. Individuals can also withdraw money at any time, although this may affect their 50% bonus payments.
The UK Government published a consultation on the Help to Save scheme on 27 April 2023, seeking views on how the scheme can be reformed and simplified.
The government is offering Help for Households. Check GOV.UK to find out what cost of living support individuals could be eligible for.
