Tag: tax returns

Boost for ‘side-hustlers’ as 300,000 people to be taken out of tax returns

  • Tax admin changes to mean up to 300,000 taxpayers will no longer be required to file a tax return   
  • Easier access to tax relief on temporarily imported fine art and antiques often shown in galleries and exhibitions announced, boosting the sector’s international competitiveness.    
  • UK’s tax minister expected to announce these alongside a raft of other measures to help HMRC deliver Plan for Change through securing tax revenue and creating the conditions for growth in speech later today (11 March) 

Up to 300,000 people, including those with side hustles, will no longer need to file a Self-Assessment tax return, tax minister James Murray is expected to announce in a speech later today.  

This includes people trading clothes online, dog-walking or gardening on the side, driving a taxi, or creating content online.  

As part of a bold new package to transform HMRC into a quicker, fairer and more modern body the minister is expected to announce plans to increase the Income Tax Self Assessment (ITSA) reporting threshold for trading income, from £1,000 to £3,000 gross within this parliament.  

This will help deliver the Plan for Change by freeing up time for taxpayers helping to create the conditions for economic growth. 

This will benefit around 300,000 taxpayers. An estimated 90,000 of them will have no tax to pay and no reason to report their trading income to HMRC in the future at all. Others will be able to pay any tax they owe through a new simple online service. The changes reflect the government’s commitment to driving forward efficiency reform, a key component of its Plan for Change. 

Mr Murray, the minister responsible for HMRC, will announce this reform to tax experts hosted by the Chartered Institute of Taxation and the Institute of Chartered Accountants for England and Wales in a speech to mark the 20th anniversary of HMRC.  

He will also detail future simplifications to the government’s Temporary Admission customs procedure, to make this relief for temporary imports easier for a range of sectors to use, including art and antiques, often showcased in exhibitions across the UK.   

A new digital pilot with the United States to test ways to speed up trade processes for U.S. and UK businesses is also expected to be announced. This pilot will look to make the communications between HMRC, the U.S. and businesses more seamless through better use of digital credentials and secure real-time data transfers. It will look to make it easier and quicker for businesses to request trade benefits from each country. 

Minister Murray will also update on the work HMRC is doing to tackle phoenixism – where company directors go insolvent to avoid tax – as well as announcing a new reward scheme to encourage informants to come forward to HMRC about tax fraud.   

Exchequer Secretary to the Treasury James Murray said: “From trading old games to creating content on social media, we are changing the way HMRC works to make it easier for Brits to make the very most of their entrepreneurial spirit.   

“Taking hundreds of thousands of people out of filing tax returns means less time filling out forms and more time for them to grow their side-hustle.  

“We are going further and faster to overhaul the way HMRC works to make sure it delivers the Plan for Change that will help put more money in people’s pockets.” 

Improving HMRC customer services    

Since taking office, Murray has been taking teams of senior HMRC officials to meet firms including NatWest, Octopus Energy, Barclays, John Lewis, and Centrica to learn best practice and innovative approaches to modernising and digiting customer service from the private sector.

This includes the use of generative AI and ‘test and learn’ approaches to improving customer service. HMRC is trialling the use of generative AI to point taxpayers to the advice they need on GOV.UK. 

In line with practice from banks and other private sector businesses, Murray will announce that HMRC has begun trialling a system where customers can use their voice as their password, to pass security checks faster and more securely.

Following an evaluation of the trial, it is expected to be rolled out across HMRC over the rest of this year. Voice Biometrics strengthen security, safeguard customer data, and reduce call times. Customers’ voice recordings are converted into encrypted biometric data, a voice print, and stored securely in a data centre. 

As reforms got underway to automate and digitise its services, HMRC met its target of 85 per cent of calls handled between October and December 2024 and is expected to meet its customer service standards in 2025-26.   

As part of this government’s commitment to partner and learn from industry, HMRC will launch a new service to provide an escalation route for agents with Self Assessment and PAYE queries which are over 4 weeks old. A dedicated team of experienced technicians and advisers will adopt a ‘once and done’ approach, taking end-to-end ownership of cases and maintaining regular communication with agents.    

Closing the Tax Gap – phoenixism and informants    

Since becoming chair of HMRC’s board last year, Exchequer Secretary James Murray has steered the UK tax authority to go further and faster to close the tax gap, in order to raise the revenue required to fund public services and investment projects.    

Following the Autumn Budget’s announcement of future work to tackle phoenixism – where rogue directors avoid payment of company tax by going insolvent – Mr Murray will update on the work in his speech. He will lay out how HMRC and the Insolvency Service have agreed a joint plan, which includes an increase to the use of securities, where HMRC asks for upfront payment of tax from new companies, making more rogue directors personally liable for the taxes of their company.   

Murray will also announce a new reward scheme for informants to be launched later this year. This will look to target serious non-compliance in large corporates, wealthy individuals, offshore and avoidance schemes. The scheme will take inspiration from the successful US and Canadian ‘whistleblower’ models and will complement the existing HMRC rewards scheme. 

Informants could take home a significant amount of compensation. This will be equal to a proportion of the tax take, ensuring that the scheme raises more money that it costs. Work is ongoing within the government regarding what percentage this could be. Further details will be set out in due course.   

At the Budget in October, the Chancellor announced an injection of over £1.5bn in HMRC to recruit and fund an additional 5,000 new compliance caseworkers and 1,800 debt collection officers. Minister Murray will announce in his speech that an additional 600 new compliance staff will start work this month. Investment in AI is expected to improve the targeting of compliance work and help make HMRC staff more productive. 

This, alongside investment to modernise HMRC systems and legislation to tackle non-compliant tax avoidance and prevent non-compliance will raise £6.5bn per year by 2029/30.   

This will help deliver the Plan for Change by securing tax revenue to help fund investment projects to boost growth. 

Simplifying Tax Admin and Modernising HMRC   

A simple and modern tax and customs system is vital to create the conditions to grow the economy.   

Following the commitment in the Autumn to bring forward measures in the Spring to simplify the tax and customs system, the government will today go further to reduce the time businesses spend managing their tax, so they can focus on what matters most to them: growing and being productive.

The minister will announce a future digital pilot with U.S. Customs and Border Protection to test ways to speed up trade processes for UK and U.S. businesses. In 2024, UK-U.S. goods trade was worth a combined £115bn. 

The aim is to make supply chains between UK and U.S. businesses more efficient through modernising how HMRC systems, international partners and businesses communicate with each other. The pilot will look to make the communications between HMRC, the U.S. and businesses more seamless through better use of digital credentials and real-time data.

The pilot will include testing the ability to issue and share digital trusted trader credentials between UK and U.S. systems.  This would speed up processes for trusted U.S. and UK businesses trading with each other including by making it more easy and efficient to request trade benefits from each country. 

Susan S. Thomas, acting Executive Assistant Commissioner of the U.S. CBP’s Office of Trade said:  “Modernizing trade processes is essential if we are going to keep pace with today’s trading environment.  

“We are taking our operations to the next level, bridging gaps between systems, creating a new era of supply chain transparency and data system flexibility.”  

James Murray will announce changes to simplify the tax system. The ITSA trading income reporting threshold will increase from £1,000 to £3,000 gross within this parliament, aligning with the new reporting thresholds for property and “other taxable” income.

This means that up to 300,000 taxpayers will not need to file a tax return. This ranges from people trading vintage clothes, dog-walking or gardening on the side, to driving a taxi or creating content online This will help cut waste, avoid unnecessary worry for customers and improve the conditions needed for them to grow.   

Murray will also highlight simplifications to the customs regime to reduce burdens for traders. These include improvements to the Temporary Admission procedure, which relieves import duties for eligible goods that are imported temporarily. For example, the usual time limit for fine art and antiques will increase from 2 to 4 years. 

Ellen Milner, Director of Public Policy, Chartered Institute of Taxation said: “We welcome the government’s focus on simplifying the tax system and improving customer service – rightly two key priorities for HMRC as the tax authority heads into its third decade.

“A more straightforward, easy to navigate tax system could free up business owners and managers to focus on growing their businesses, rather than spending their days overcoming bureaucratic hurdles.

“We especially welcome the announcement of a new approach to dealing with slow-moving income tax queries from agents. Hopefully, in due course, this can be expanded to unrepresented taxpayers and to other taxes.” 

 It’s a Self Assessment wrap for 40,000 festive filers

  • 4,409 Self Assessment customers completed their tax return on Christmas Day 
  • 40,072 filed their tax return over the Christmas break 
  • Customers encouraged to prepare and file their tax return ahead of January deadline

More than 4,400 Self Assessment customers avoided peeling the sprouts to file their tax return online on Christmas Day, HM Revenue and Customs (HMRC) can reveal. 

In total, 40,072 customers – as well as spending the three-day holiday indulging in usual Christmas pastimes of eating, drinking and watching festive favourites on the TV – found time to go online and wrap up their 2023 to 2024 tax return, well ahead of the 31 January deadline. 

Festive filing statistics show that over Christmas Eve, Christmas Day and Boxing Day: 

  • 15:00 to 15:59 proved to be the most popular time to file on the big day itself, with 368 filing their return  
  • 11,932 customers missed out on leftovers for lunch, submitting their tax return on Boxing Day, with the most popular time being 16:00 to 16:59 and 1,108 filing during that time. 
  • 23,731 filed on Christmas Eve instead of last-minute shopping and wrapping. The most popular time was 11:00 to 11:59 when 3,458 filed their tax return 

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “People who need to file a Self Assessment return and already have, can enjoy the rest of the festive period knowing they’ve got it wrapped up for another year, and can enjoy singing Auld Lang Syne knowing their tax affairs are in order.

“For those who haven’t started yet, our online service is available 365 days a year so there’s still a chance to get it done before 2024 is out! Go to GOV.UK and search ‘Self Assessment’ to access the online help and start today.” 

Customers who have already submitted their tax return online have until the 31 January 2025 to pay the tax they owe. Those who file before 30 December may have the option of paying any tax owed through their PAYE tax code.    

The quickest and easiest way to pay a Self Assessment tax bill is via the HMRC app. For a full list of ways to pay, visit GOV.UK. 

For anyone who is yet to start their Self Assessment, there’s plenty of  information and guidance online, including YouTube videos, to help people complete their return. 

Anyone who regularly sells goods or provides a service through an online platform can find out more about  selling online and paying taxes on GOV.UK. The information will help them decide if their activity should be treated as a trade and if they need to complete a Self Assessment tax return. 

You may need to file a return if you:

  • are newly self-employed and have earned gross income over £1,000
  • earned below £1,000 and wish to pay Class 2 National Insurance Contributions voluntarily to protect their entitlement to State Pension and certain benefits
  • are a new partner in a business partnership
  • have received any untaxed income over £2,500
  • receive Child Benefit payments and need to pay the High Income Child Benefit Charge because they or their partner earned more than £50,000

Criminals use emails, phone calls and texts to try to steal information and money from taxpayers. Customers can find more information on how to identify a scam and access a checklist to help them decide if the contact they have received is a scam, on GOV.UK 

Edinburgh academic wins place on US – UK exchange programme

An Edinburgh academic who set up Scotland’s first free ‘tax clinic’ for people on low incomes has won a place on a US-UK exchange programme.

Dr Amy Lawton’s Scottish Tax Clinic has helped vulnerable people overturn tax debts of more than £100,000. She hopes to learn from the US, where the tax clinics have been in operation for many years.

Dr Lawton’s free advice service is open to anyone in Scotland who has run into problems with their tax returns and who cannot afford to pay for professional advice. She helps around 100 people per year, sometimes cancelling penalties of thousands of pounds.

Her pioneering clinic at the University of Edinburgh works in partnership with the tax charity TaxAid UK, and is staffed by local, professional volunteers and law students at Edinburgh Law School where she is a senior lecturer. It allows law students to put theory into practice with real-life cases whilst also helping those who have nowhere else to turn.

Dr Lawton said: “My Scottish Tax Clinic is the only free, dedicated tax clinic in the UK, but tax clinics are a much bigger thing in the US where it is much easier to get pro bono tax advice if you are on a low income.

“Tax has a reputation for being a rich person’s problem but people on all levels of income get into trouble with HMRC.

“Often they’ve forgotten to fill out their tax return due to severe personal circumstances or they are juggling multiple jobs without the correct tax code. Some of the penalties involved mean they can soon stack up thousands of pounds of debt.”

Dr Lawton has won an All Disciplines Scholar Award from the US-UK Fulbright Commission and will spend a term at Villanova Law School, the home of one of the oldest tax clinics in the United States.

The Villanova Federal Tax Clinic represents, litigates for and provides a voice for low-income taxpayers. It plays a crucial role in making sure the US tax system is fair for individuals who may otherwise not have a voice.

The US was Dr Lawton’s inspiration when she established the UK’s very first tax clinic whilst teaching at Lancaster University.

When she moved to the University of Edinburgh the clinic moved with her, and it remains the oldest one in operation in the UK, and the only one solely devoted to tax support.

Dr Lawton added: “Citizens Advice Bureau won’t provide advice on tax, so there are very limited options for professional advice unless you have the money to pay for it.

“The tax charities (such as TaxAid UK) and the Scottish Tax Clinic provide a vital service for those with nowhere else to turn. Not everyone needs a lot of help, but some people have tax debts of thousands of pounds.

“A lot of that debt is usually penalties for late filing. If you are more than a year overdue with your tax return there is a fine of £1,600, even if you don’t owe a penny in tax. The Scottish Tax Clinic has been successful at appealing these kinds of crippling debts, which can be life changing for those involved and can avoid them having to file for bankruptcy.

“I realised that the US has so much experience in this field that we can really learn from here in the UK. My tax clinic is successful, but it is still a very isolated resource. The US started with just one clinic and now there is a network of government funded clinics, allowing people all over the country to access independent advice.

“I’m hoping that, following my Fulbright Commission exchange, I’ll be able to make that strong argument that tax clinics should be more present in the UK.”

The US-UK Fulbright Commission was established in the aftermath of the Second World War to foster better understanding between the US and the UK, and promote the empathy gained from cultural immersion.

Active in 150 countries, the Fulbright programme is the largest international education exchange in the world: more than 370,000 people have participated in it globally since it began, and over 25,000 have received US-UK Fulbright awards. 

Sixty-two Fulbright alumni have won Nobel Prizes; 88 have won Pulitzer Prizes and 40 have served as head of state or government.

Maria Balinska, Executive Director of the US-UK Fulbright Commission, said: “Our vision is a world where there are no obstacles to learning, understanding and collaboration.

“Today there are many global challenges to overcome, and the world needs compassionate leaders to tackle them.

“This year’s cohort of awardees will be placing cultural engagement at the heart of their experiences as they undertake ambitious study and research programmes in the US: I am filled with hope for the wonderful collaborations that will ensue.”

Dr Lawton will join a cohort of 31 Fulbrighters heading to the USA from the UK for 2024-25.

Beyond learning from the Villanova clinic, Dr Amy Lawton’s Fulbright project seeks to explore the impact of legal representation in the tax court in both the US and the UK.

As a Fulbright Scholar, she is keen to learn how her clinic can grow, by immersing herself in one of the most experienced tax clinic countries in the world: the United States of America.

Early Birds! Over 295,000 file returns in the first week of new tax year

Almost 300,000 Self Assessment customers filed their tax return in the first week of the new tax year, almost 10 months ahead of the deadline, HM Revenue and Customs (HMRC) has revealed. 

Customers can file their Self Assessment returns for the 2023 to 2024 tax year between 6 April 2024 and 31 January 2025.  

Almost 70,000 people filed their return on the opening day this year (6 April) and HMRC is encouraging people to do it early and not to leave it until January. 

Visit GOV.UK to find out more about Self Assessment and how to file a tax return.  

By filing tax returns early, people can take their time to complete their returns – making sure the information is accurate and avoiding the stress of last-minute filing.  

It can also help with budgeting and helping spread the cost of their tax bill. Customers can set up a budget payment plan to make weekly or monthly direct debit payments towards their next Self Assessment tax bill. 

Refunds of overpaid tax will be paid as soon as the return has been processed. Customers can also check if they are due a refund in the HMRC app.  

In recent years, HMRC has seen more and more customers file their tax returns early. Last year, more than 246,000 people submitted their Self Assessment between 6 and 12 April 2023. 

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Filing your Self Assessment early means people can spend more time growing their business and doing the things they love, rather than worrying about their tax return.  

“You too can join the thousands of customers who have already done their tax return for the 2023-24 tax year by searching ‘Self Assessment’ on GOV.UK and get started today.” 

HMRC has updated guidance on filing tax returns early and help around paying tax bills on GOV.UK.  

Anyone who is new to Self Assessment and thinks they might need to complete a tax return for the 2023 to 2024 tax year can use the Self Assessment online tool to check whether they need to register for Self Assessment and submit a return. 

People may need to complete a tax return for the 2023 to 2024 tax year and pay any tax owed if: 

·         they are a self-employed individual with an income over £1,000 

·         they have received any untaxed income over £2,500 

·         they are renting out one or more properties 

·         they claim Child Benefit and they or their partner have an income above £50,000   

·         they are a partner in a partnership 

·         their taxable income earned from savings and investments is more than the £10,000 personal savings allowance 

·         their taxable income earned from dividends is more than £10,000 

·         they have paid Capital Gains Tax on assets that were sold for a profit above the Capital Gains threshold 

A full list of who needs to complete a tax return is available on GOV.UK. 

Pensioners are required to pay Income Tax on any taxable income, including their pension income, above their Personal Allowance threshold. There are different ways to pay any tax owed, depending on the individual’s circumstances, including: 

·         if they already complete a Self Assessment tax return, they will need to report and pay via this route 

·         if they have a PAYE tax code, HMRC will automatically collect any tax through their tax code 

Alternatively, if a pensioner does not already pay tax via Self Assessment or PAYE, HMRC will send them a Simple Assessment summary.

The Simple Assessment will tell them how much Income Tax they need to pay and the deadline – usually by 31 January following the end of the tax year. HMRC produces the Simple Assessment from the information it already holds so people do not need to do anything – there is no form to complete. More information about Simple Assessment is available on GOV.UK. 

It is important that customers let HMRC know if there are any changes in details or circumstances such as a new address or name, or if they are no longer self-employed or their business has closed.

They should not assume someone else will update HMRC on their behalf.

If customers no longer need to do Self Assessment, they will need to tell HMRC. There are videos on YouTube that explains how to stop Self Assessment. 

Criminals use emails, phone calls and texts to try to steal information and money from taxpayers. Before sharing their personal or financial details, people should search ‘HMRC phishing and scams’ on GOV.UK to check the sender or caller is genuine. 

Customers should never share their HMRC sign-in details. Someone could use them to steal from them or claim benefits or a refund in their name. 

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

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

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

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

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

HMRC is urging anyone who missed the deadline to submit their tax return now. There is an interactive tool on GOV.UK to help customers with their return. Late filing and late payment penalties are charged for failure to meet the deadline.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Thank you to the millions of Self Assessment customers and agents who met the deadline.

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

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

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

A full list of payment options can be found on GOV.UK. There is also a video on YouTube that explains a customer’s Self Assessment tax bill and the different ways to pay.

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

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

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

People should be aware of the risk of falling victim to scams and should never share their HMRC login details with anyone, including a tax agent, if they have one. HMRC scams advice is available on GOV.UK.

HMRC: Number of Self Assessment customers who file early doubles in 5 years

The number of Self Assessment customers who choose to file their tax return on the first day of the tax year (6 April 2023) has more than doubled since 2018, HM Revenue and Customs (HMRC) has revealed.

More than 77,500 customers submitted their tax return for the 2022 to 2023 tax year on 6 April 2023, compared to almost 37,000 customers on 6 April 2018.

The deadline to file tax returns for the 2022 to 2023 tax year is 31 January 2024 and customers have been able to submit theirs since the start of the new tax year.

By completing their Self Assessment early, customers have avoided the stress of last-minute filing – something which encouraged more than 860,000 customers file their tax return for the 2021 to 2022 tax year on 31 January 2023.

Visit GOV.UK to find out more about Self Assessment and how to file a tax return for the 2022 to 2023 tax year.

https://youtu.be/TnRQs2kvchA

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Filing your Self Assessment early means you can spend more time building your business or doing the things that you enjoy and less time worrying about completing your tax return. To find out how you can start yours and get help with budget planning, search ‘Self Assessment’ on GOV.UK.”

Customers can find out sooner if they are owed money. Once they have submitted their tax return for the 2022 to 2023 tax year, HMRC will let customers know as soon as the return has been processed and arrange for any overpayment to be refunded. Customers can also check if they are due a refund in the HMRC app once they have filed their return.

Customers who file early also benefit from knowing how much tax they owe and can set up a budget plan to help spread the cost and manage their payments. The Budget Payment Plan allows customers to choose how much and how often they want to pay – putting them in control of managing their bill.

Taxpayers can check if they need to complete a tax return by using the free online tool on GOV.UK. They may need to do Self Assessment if, for example, they:

·         are newly self-employed and have earned over £1,000

·         are a new partner in a business partnership

·         have received any untaxed income

·         are claiming Child Benefit and you or your partner have an income above £50,000

HMRC has updated guidance on filing tax returns early and help around paying tax bills on GOV.UK.

It is important that customers let HMRC know if there are any changes in details or circumstances such as a new address or name, or if they are no longer self-employed or their business has closed down. They should not assume someone else will update HMRC on their behalf.

If customers no longer need to do Self Assessment, they will need to tell HMRC. Find out more information on YouTube.

HMRC is reminding customers to protect their personal information and always be on their guard against tax scams. If a customer is contacted by someone saying they are from HMRC, they should never let themselves be rushed, especially if they are urged to transfer money or share personal information. Customers should not share their HMRC login details with anyone, including their tax agent.

Tax scams come in many forms – some offer a rebate while others threaten arrest for tax evasion. HMRC advises customers to take their time and if they’re unsure, check HMRC scams advice on GOV.UK.

From pensioners to teenagers, HMRC reveals who files a tax return

HMRC has revealed that more pensioners filed a tax return for the 2020 to 2021 tax year compared to young people.

Overall, those aged 65 and over accounted for 16% of individuals who submitted a tax return, whereas 16 to 24 year olds made up 2.7% of total filers.

The new data is part of analysis by HMRC into the demographic data of the Self Assessment population.

The findings also show:

  • people aged 45 to 54 were the largest group of filers, accounting for 24% of all tax returns submitted
  • more than 294,000 16 to 24 year olds filed a return, making up 2.7% of total filers
  • 62% of those who submitted a return last year were men, compared to 38% who were women

The data also showed that almost 146,000 people submitted their tax return at the earliest opportunity between 6 and 11 April 2021.

More than 12 million people are expected to file a Self Assessment tax return for the 2021 to 2022 tax year. Anyone yet to submit theirs has until 31 January to complete it, pay any tax owed or set up a payment plan, or risk having to pay a penalty.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Time is running out for anyone who has yet to start their tax return – there is a wide range of guidance and webinars available online for those who need a helping hand. Just search ‘Self Assessment’ on GOV.UK to make a start.“

Payments are also due on 31 January and customers still have time to decide which payment option is best for them. For customers who are due a refund, they should include their bank account details in their tax return so that if HMRC needs to repay them, it can be done quickly and securely.

Customers can now use the free and secure HMRC app to make Self Assessment payments, as well as accessing information which they need to complete their tax return, including their Unique Taxpayer Reference (UTR), National Insurance number and employment history.

Those who are unable to pay their tax bill in full can access support and advice on GOV.UK. HMRC may be able to help by arranging an affordable payment plan, known as Time to Pay. Customers should try to do this online; go to GOV.UK for more information. Alternatively, they can contact the helpline.

HMRC has a wide range of resources to help customers complete their tax return, including guidance, webinars and YouTube videos.

Customers need to be aware of the risk of scams as criminals use Self Assessment as an opportunity to commit fraud. Customers should check HMRC’s scams advice on GOV.UK.

It’s a cracker! 3,275 file tax returns on Christmas Day

As millions of people enjoyed Christmas festivities this year, for 3,275 people Christmas Day was the perfect time to file their Self Assessment tax return, HM Revenue and Customs (HMRC) has revealed. 

A total of 22,060 customers went online to submit their form for the 2021 to 2022 tax year between 24 and 26 December, and 141 opted to file between 23:00 and 23:59 on Christmas eve, meaning they could enjoy celebrations knowing their tax return was complete.

The breakdown of figures for those who opted to file during the festive period are:

  • Christmas Eve: 8,474 tax returns were filed. The peak time for filing was between 11:00 and 11:59, when 888 returns were received. 
  • Christmas Day: 3,275 tax returns were filed. The peak time for filing was between 12:00 and 12:59, when 319 returns were received. 
  • Boxing Day: 10,311 tax returns were filed. The peak time for filing was between 12:00 and 12:59, when 953 returns were received. 

The deadline to file and pay any tax owed for the 2021 to 2022 tax year is 31 January 2023, and HMRC is urging customers to submit their tax return on time or they may face a penalty.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “We are grateful to those customers who have already filed their tax returns. For anyone who is yet to make a start, help is available on GOV.UK, just search ‘Self Assessment’ to find out more.”

Once customers complete their tax return, if they owe tax, they can find out about the different ways to pay including via the HMRC app at GOV.UK.

Those who are unable to pay their tax bill in full can access support and advice on GOV.UK. HMRC may be able to help by arranging an affordable payment plan, known as Time to Pay. Customers should try to do this online; go to GOV.UK for more information. Alternatively, they can contact the helpline. 

HMRC has a wide range of resources to help customers complete their tax return, including guidance, webinars and YouTube videos.

People need to be aware of the risk of falling victim to scams and must never share their login details which can be used to make fraudulent claims. Check HMRC scams advice on GOV.UK.

Find out more about Self Assessment.

HMRC: 656,000 people in Scotland filed their tax returns on time

HM Revenue and Customs (HMRC) is reminding customers in Scotland to get ready to meet the Self Assessment deadline, after more than 656,000 filed their tax returns on time. 

In Scotland, 656,547 customers filed their returns for the tax year 2020 to 2021 by 31 January 2022.

The deadline to submit a tax return for the 2021 to 2022 tax year and pay any tax due is 31 January 2023. Customers do not need to wait until the new year to begin their tax return. Starting early means more time to access guidance and webinars to help complete the return and find out what tax they owe, so they can budget.  

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “There is still time to complete your tax return ahead of the deadline and there are videos and guidance available online to support you with your Self Assessment. Search ‘help with Self Assessment’ on GOV.UK to find out more.”

HMRC has produced guidance notes and YouTube videos to help customers understand how to complete their return quickly and easily. 

The free and secure HMRC app can be used to make Self Assessment payments. Alternative payment options include:

  • paying through PAYE tax code (subject to eligibility)  
  • paying via online banking

Those who are unable to pay their tax bill in full can access support and advice on GOV.UK. HMRC may be able to help by arranging an affordable payment plan, known as Time to Pay. Customers should try to do this online; go to GOV.UK for more information. Alternatively, they can contact the helpline.

Customers who are unsure if they need to file a tax return can visit GOV.UK to check if they need to send a Self Assessment tax return.

People completing a tax return are at increased risk of falling victim to scams. Check HMRC scams advice on GOV.UK.

HMRC: Self Assessment – don’t forget to declare COVID-19 payments

HM Revenue and Customs (HMRC) is reminding Self Assessment customers that they must declare COVID-19 payments in their tax return for the 2021 to 2022 tax year.

More than 2.9 million people claimed at least one Self-Employment Income Support Scheme (SEISS) payment up to 5 April 2022. These grants are taxable and should be declared on tax returns for the 2021 to 2022 tax year before the deadline on 31 January 2023.

The SEISS application and payment windows during the 2021 to 2022 tax year were:

·         SEISS 4: 22 April 2021 to 1 June 2021

·         SEISS 5: 29 July 2021 to 30 September 2021

SEISS is not the only COVID-19 support scheme that should be declared on tax returns. If customers received other support payments during the 2021 to 2022 tax year, they may need to report this on their tax return if they are:

  • self-employed
  • in a partnership
  • a business

Customers can check which COVID-19 grants or payments they need to report to HMRC on GOV.UK. This applies to payments received during the 2021 to 2022 tax year.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “We want to help customers get their tax returns right, first time. We have videos and guidance available online to support you with your Self Assessment. Search ‘help with Self Assessment’ on GOV.UK to find out more.”

Help and support is available on GOV.UK for those completing their Self Assessment tax returns. There is also a series of videos on YouTube.

The free and secure HMRC app can be used to make Self Assessment payments. Alternative payment options include:

·         paying through PAYE tax code (subject to eligibility) 

·         paying via online banking

Those who are unable to pay their tax bill in full can access the support and advice that’s available on GOV.UK. HMRC may be able to help by arranging an affordable payment plan, known as a Time to pay. Customers should try to do this online, go to GOV.UK for more information. Alternatively, they can contact the helpline.

All Self Assessment customers need to be alert to the risk of criminals emailing, calling or texting claiming to be from HMRC. Scams come in many forms – some threaten immediate arrest for tax evasion, others offer a tax rebate.

Contacts like these should set alarm bells ringing and HMRC advises customers to take their time and check scams advice by searching for ‘HMRC scams’ on GOV.UK. HMRC also urges customers never to share their HMRC login details. Someone using them could steal from the customer or make a fraudulent claim in their name.