Tax 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…

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Rent 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…

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Tax 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…

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Higher 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…

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Minimum wage graduates on overtime face paying student loan tax

Minimum wage graduates on overtime face paying student loan tax Due to rises in the minimum wage coming in April 2025, some graduates working non-graduate minimum wage jobs may be pulled into paying their student loans back after earning over the threshold. The current threshold depends on what type of student loan was taken out…

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Key Tax changes for businesses in 2025

Key Tax changes for businesses in 2025 As we move ahead into 2025, we seem to be greeted by a rapidly shifting tax landscape. Businesses are needing to get to grips with significant changes on the horizon, from adjustments to business asset disposal relief (BADR), the phased implementation of Making Tax Digital (MTD) and increases…

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National Insurance increases from April 2025

National Insurance increases from April 2025 From April 2025, employers can expect to pay 60% more in National Insurance in the 2025-26 tax year due to National Insurance Contributions (NIC) rises announced at the last Budget. In 2024 an employer paid £1,617 for each full-time employee on minimum wage, this will increase to £2,583 from…

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Another reason to pay your tax on time!

Another reason to pay your tax on time! The Chartered Institute of Taxation (CIOT) is lobbying the government to address unfair tax rules as HMRC interest rates on late payments are due to rise by a further 1.5% in April to 9%, with no equivalent increase in interest on overpaid tax. The CIOT is urging…

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