Self-Assessment
A record £190bn paid in income tax by High Earners
A record £190bn paid in income tax by High Earners Additional and higher rate payers paid £190.6bn in income tax in the 2023-24 tax year has been revealed in the latest HMRC breakdown of income tax paid across the population depending on earnings. The 20% cohort paid £84bn in total, bringing income tax revenue to…
Read MoreApril 2026 – Personal Tax changes
April 2026 – Personal Tax changes Increase in tax on dividends, directors’ loan interest rate rise, business asset disposal relief hike, frozen thresholds, inheritance tax for farmers and family businesses, Making Tax Digital starts, CIS, and more Dividend tax There will be a 2% increase in the rates of income tax paid on dividends at the…
Read MoreHMRC have clarified how you may be able to exit Making Tax Digital (MTD) if your income has fallen
HMRC have clarified how you may be able to exit Making Tax Digital (MTD) if your income has fallen At the eleventh hour, HMRC has clarified exit options and cessation processes. The clarification is welcome news and will affect some taxpayers who have been notified by HMRC that they must sign up to wave one…
Read MoreMaking Tax Digital (MTD) reporting while on Maternity Leave
Making Tax Digital (MTD) reporting while on Maternity Leave Mothers on maternity leave will still have to file quarterly updates under Making Tax Digital for Income Tax, even if earnings are nil, if they are in the first £50,000 threshold. HMRC has confirmed the nuances of the MTD for Income Tax rules for women on…
Read MoreSpotlight 63
Are you under the Spotlight? – Spotlight 63 Property business arrangements involving hybrid partnerships (Spotlight 63) – GOV.UK We Can Help You Put It Right If you’re a landlord who has recently become aware of Spotlight 63, you’re not alone. Many property owners are now realising that their tax position may not be as robust…
Read MoreHMRC publishes the penalty guidance for Making Tax Digital (MTD) for Self-Assessment
HMRC publishes the penalty guidance for Making Tax Digital (MTD) for Self-Assessment HMRC has published guidance on how penalties will be applied under MTD for Income Tax as we approach the start of the new system in April 2026. The new penalties system replaces existing penalties with a ‘points-based’ regime for late submissions, alongside separate…
Read MoreAre you a residential Landlord?
Are you a residential Landlord? From April 2027, the tax landscape for residential property becomes markedly tougher due to higher income tax rates on rental income, and a new annual surcharge on high-value homes from April 2028. For buy-to-let (BTL) landlords and high-net-worth individuals (HNWs), the cumulative effect is clear: higher holding costs, increased compliance…
Read More£137M paid in late payment interest by 1.3 million taxpayers
£137M paid in late payment interest by 1.3 million taxpayers HMRC’s decision to hike the late payment interest rate to 4% above the Bank of England base rate from 6 April 2025, has meant that rates were as high as 8.25% for many months. In total, HMRC charged 1.3 million taxpayers late payment interest in 2023-24 which raised 137m in a…
Read MorePayroll changes as state pension age rises
Payroll changes as state pension age rises Upcoming changes to the state pension age for men and women will see retirement age increase from 66 to 67 years, affecting payroll and national insurance contributions. From 6 April 2026, the increase will be phased in over the course of two years, meaning that people born between…
Read MoreWhat you need to know about Making Tax Digital (MTD)
What you need to know about Making Tax Digital (MTD) As the deadline for mandatory Making Tax Digital (MTD) for Income Tax for affected taxpayers with income over £50,000 begins on Monday 6 April, HMRC has confirmed their preference is for taxpayers to file using MTD compatible software. The requirement to report quarterly will be…
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