November 2023

Tax return deadline

The January tax return deadline is getting closer and if you haven't already sent us your records for the tax year ended 5 April 2023, please do so as soon as you can so that we can avoid a last minute rush to complete everyone's return.

Electric charging of company cars and vans at residential properties

HMRC has revised its guidance on the provision of electricity by an employer for charging company cars and vans provided to employees, including directors.

As a result, no separate charge to tax will arise where an employer reimburses the employee for the cost of electricity to charge their company vehicle at home.?The exemption will however only apply providing it can be demonstrated that the electricity was used to charge the company vehicle.? Employers will need to make sure that any reimbursement made towards the cost of electricity relates solely to the charging of the company vehicle. It doesn't matter whether the vehicle was used for business or private use once charged.

It was already agreed that employers can provide, without a tax charge arising, charging facilities and electricity that is available for all electric company cars at the workplace, a charging point at the employee's home and a charge card for public charging points.

If the employer does not pay for electricity used at home to charge a company vehicle, the employee can claim for the electricity cost of the business mileage and would need to keep a record of this. If the reimbursement covers private mileage, a taxable benefit arises.

Note that in cases where the employee uses their own electric vehicle for work, different rules apply.

Please do contact us if you would like to discuss these rules further.

Scams warning issued to 12 million self-assessment taxpayers

HMRC has warned that self-assessment taxpayers should be on the lookout for scam texts, emails and phone calls from fraudsters.

HMRC has received more than 130,000 reports about tax scams in the past year, with 58,000 of those offering fake tax rebates.

With around 12 million people expected to submit a self-assessment tax return for the 2022/23 tax year before the 31 January 2024 deadline, fraudsters will prey on taxpayers by impersonating HMRC.

The scams take different approaches. Some offer a rebate; others tell taxpayers that they need to update their tax details or threaten immediate arrest for tax evasion.

If you think your have been contacted by HMRC, please do not give out any personal details, do not reply to the texts or emails and instead contact us for advice.