July 2023

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HMRC extends deadline for voluntary NICs

HMRC has extended the voluntary national insurance contributions (NICs) deadline until 2025.

Extending the voluntary NICs deadline until 2025 will give people more time to consider whether paying voluntary contributions is right for them, and also ensures individuals do not miss out on the possibility of boosting their State Pension entitlements.

The original deadline was extended to 31 July 2023 earlier this year. HMRC said the new extension allows thousands more people to add extra years to their national insurance record.

HMRC stated that all relevant voluntary NIC payments will be accepted at the rates applicable in 2022/2023 until 5 April 2025.

UK inflation stays at 8.7%

The UK's rate of inflation plateaued at 8.7% in May, data published by the Office for National Statistics (ONS) has shown.

Inflation was expected to fall in May but remained at 8.7% - the same rate as was recorded in April. The rate of 8.7% is higher than economists had expected, and many now anticipate a rise in interest rates.

So-called 'core inflation' - which excludes volatile elements such as food, fuel and energy prices – is now at its highest level in the UK for over 30 years. 

UK inflation is higher than inflation rates in comparable countries, the data revealed: Germany recorded a rate of inflation of 6.3%; France's rate is currently 6%; and the USA's inflation rate is 2.7%.

Bank of England Raises UK base interest rate

The Bank of England has raised UK interest rates to a 15-year high of 5% as it continues its battle against inflation.

Despite concerns that mortgage-holders face higher rates, the Bank's Monetary Policy Committee (MPC) decided to raise its benchmark rate from 4.5% to 5%, an increase of half a percentage point.

It is the 13th increase in UK interest rates in a row, going back to December 2021.

Second Payment On Account Deadline

For taxpayers who submit an annual self-assessment tax return in respect of their personal income and capital gains, they may need to pay a second payment on account for the 2022-2023 tax year by 31 July 2023 to H M Revenue & Customs.