HMRC
HMRC increase beneficial loan rate to 3.75%
HMRC increase beneficial loan rate to 3.75% HMRC has increased the ‘actual official rate’ for beneficial loan arrangements from 2.25% to 3.75% from 6 April 2025, the highest rate since 2014, when interest is calculated using the ‘precise method’. However, the rate for loans repaid using the ‘averaging method’ for the 2025-26 tax year has…
Read MoreHMRC receives over £400m in late payment interest
HMRC receives over £400m in late payment interest A recent freedom of information request has found that the amount of money paid out in late payment interest to HMRC hit £409.4m in 2024, more than tripling in just three years. Back in 2021 £131.9m was paid in late interest by taxpayers who failed to pay…
Read MoreOnline Side Hustlers sent letters from HMRC about unpaid tax
Online Side Hustlers sent letters from HMRC about unpaid tax HMRC has now started sending letters to online sellers and side hustlers it suspects of not paying tax or disclosing sales on online platforms in 2022-23, giving them just 30 days to respond. The letters will need immediate action and if HMRC do not receive…
Read MoreHMRC updates when to set up ‘time to pay’ plans online
HMRC updates when to set up ‘time to pay’ plans online In the first update to ‘time to pay’ guidance since 2021, HMRC has clarified when pay plans can be set up without speaking to them directly! There has not been any change to the qualifying criteria for self-assessment taxpayers with the £30,000 limit on…
Read MoreTax Investigations – where might HMRC focus in 2025
Tax Investigations – where might HMRC focus in 2025 Although investigations into tax are not new, HMRC have made it clear that they are recruiting extra staff to complete more ‘compliance checks’ than ever before – so where will they be looking to complete these checks? It is of course expected that HMRC will increase…
Read MoreRent a room tax relief
Rent a room tax relief It is now thought that over 1.8 million UK adults rent out furnished rooms in their homes, which allows them to qualify for up to £7,500 in tax free income under the rent a room scheme. HMRC have advised that £170m was claimed in the tax relief in 2023-24, but…
Read MoreTax Investigations bring in an extra 28% in 2024
Tax Investigations bring in an extra 28% in 2024 HMRC have received extra funding by raking in £45.7bn from tax investigations in 2024, a £10bn rise from the previous year, while over £10bn more in VAT may yet be recovered from large businesses, as we are informed that another 5,000 more compliance officers are being…
Read MoreHigher Rate Tax Payers up 43% in the last 3 years
Higher Rate Tax Payers up 43% in the last 3 years In total 2.5m taxpayers will have to pay higher and additional rate tax for the first time, with the situation unlikely to improve before 2029 at the earliest, based on the latest freeze extension announced at the Budget. There will be 6.3m higher rate…
Read MoreHMRC to replace Government Gateway accounts with One Login
HMRC to replace Government Gateway accounts with One Login The government is investing millions of pounds in a single login system for taxpayers and agents using online services with the launch of GOV.UK One Login. The new login service which will have two factor authentication and will be rolled out across all government web services…
Read More20% of tax paid by just 100,000 people
20% of tax paid by just 100,000 people The total receipts for capital gains tax (CGT) and income tax rose to £262.6bn in 2022/23, with the top 100,000 taxpayers paying one fifth of this, meaning almost £4bn being covered by just 100 people, meaning each of these taxpayers paid an average £39m, as revealed analysis…
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