HMRC cuts late payment interest rate to 7.75%

HMRC cuts late payment interest rate to 7.75% Following the recent cut in base rate, HMRC is going to reduce interest rates on late payments in the second week of January. HMRC interest rates for late payment and repayment will reduce by 0.25%. Late payment rates reduce to 7.75% from 9 January, while repayment rates reduce…

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How did you spend Christmas Day?

How did you spend Christmas Day? In total, 37,435 people filed their personal tax return between Christmas Eve and Boxing Day, HMRC have advised. This suggests that for some, festive filing is becoming as much a tradition as watching the King’s Speech. However, the numbers were down on the previous year when HMRC received 40,072…

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Budget 2025 – Tax on savings increased by 2%

Budget 2025 – Tax on savings increased by 2% As part of the chancellor’s Budget, it was announced that a hike in the tax rate on savings income by 2% across all bands will come into effect from April 2027. This means savers will pay tax at 22% if they are basic rate taxpayers, and…

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Budget 2025 – Dividend tax up 2% from 2026

Budget 2025 – Dividend tax up 2% from 2026 From the next tax year in April 2026, the base and higher rates of tax on dividend income will increase by 2% to 10.75% for basic-rate taxpayers and 35.75% for higher and additional rate taxpayers. The current £500 of exempted tax-free dividend income will not change,…

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Budget 2025 – 2% rise in income tax on property

Budget 2025 – 2% rise in income tax on property The chancellor announced in the November 2025 budget that for the first time; there will be separate tax rates for property income affecting earnings from renting lands and buildings. From April 2027, income tax on property rental and income will fall under a new property…

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Selling gifts at Christmas markets – beware!

Selling gifts at Christmas markets – beware! People selling homemade crafts and Christmas cards at markets this December need to keep within the £1,000 side hustle threshold, or face a demand from HMRC. With Christmas markets springing up across the country, HMRC has warned anyone selling handmade gifts and other items at venues around the…

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What are the tax implications of buying crypto?

What are the tax implications of buying crypto? HMRC is becoming increasingly active with regards to crypto with over 65,000 nudge letters having been sent out to suspected crypto investors in 2025. In 2024, 27,700 letters were sent out.  The letters are being sent in advance of the new reporting obligations for cryptoasset service providers…

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HMRC sends 65,000 ‘nudge’ letters to crypto traders

HMRC sends 65,000 ‘nudge’ letters to crypto traders In a push to improve tax compliance, HMRC has sent out over 65,000 nudge letters to ‘hobby crypto traders’ it suspects are underpaying tax on gains. There is an estimated £12.9bn held by UK taxpayers in crypto, up from £7.8bn in 2022. HMRC has decided it is…

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