HMRC charges £325m in late tax return penalties
HMRC charges £325m in late tax return penalties HMRC charged taxpayers £325m in fines and interest for late tax payments in 2025 as 600,000 taxpayers were hit with penalties after missing the 31 January deadline. As well as that, the amount of unpaid self-assessment tax in the 2023-24 return cycle was eye-watering. HMRC estimates that…
Read MoreOver 5m people had the wrong tax code in the last year!
Over 5m people had the wrong tax code in the last year! Reports suggest that HMRC overcharged employees £3.5bn in income tax last year, with 5.6m people paying too much due to mistakes on tax codes in the PAYE system. The massive £3.5bn tax overcharge was disclosed in a freedom of information request. While taxpayers…
Read MoreHave you had a letter about Making Tax Digital for your self-assessment, but you don’t have an accountant – Kennedys Accounting are here to help!
Have you had a letter about Making Tax Digital for your self-assessment, but you don’t have an accountant – Kennedys Accounting are here to help! Senior HMRC official claims Making Tax Digital (MTD) rollout is ‘on track’ but 40% of sole traders and landlords do not have an accountant or bookkeeper. From 6 April 2026,…
Read MoreWhat to do if you can’t pay your Self-Assessment on time!
What to do if you can’t pay your Self-Assessment on time! For some small business owners and sole traders, the run-up to 31 January comes with a stressful reality: tax is due but there is no money available to pay the bill! When this happens, the goal is to take control of the situation early…
Read MoreGarden Office – What You Need to Know!
Garden Office – What You Need to Know! With people continuing to work from home, many UK business owners, freelancers, and remote workers are eyeing up their garden as the perfect spot for a dedicated home office. But the question is: Can you put your garden office through your business and claim it as a…
Read MoreBudget 2025 – mandatory e-invoicing by 2029
Budget 2025 – mandatory e-invoicing by 2029 In a move that is likely to catch companies off guard, all VAT invoices will have to be produced using an electronic format. The move to mandatory e-invoicing is designed to modernise the tax system the government has said and from April 2029 businesses will be required to…
Read MoreNational living wage rate goes up 4.1%
National living wage rate goes up 4.1% The government has confirmed above inflation rises in the national living wage with a 4.1% rise, while national minimum wage will go up 8.5% from 1 April 2026. This year’s hike to national living wage is down on last year’s 6.7%, which caught employers off guard. This time…
Read MoreEmployer NI up 23% with a record amount paid of £93.7bn
Employer NI up 23% with a record amount paid of £93.7bn Businesses hit by soaring employer national insurance (NI) raise billions in extra tax for the Treasury in first eight months of the tax year. The latest HMRC figures for November 2025 showed the tax take from employer NI was up 23%, with a record…
Read MoreHMRC to end letters in the post from March 2026
HMRC to end letters in the post from March 2026 HMRC have announced that to save in print and postage costs by £50m, letters will no longer be sent out automatically to taxpayers from next spring, with email alerts notifying them of new documents in their personal tax accounts or the HMRC app instead. This…
Read MoreHMRC 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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