January 2024

The 2023 tax return deadline is 31^st January 2024 and if you have a tax liability arising from your tax return for the year ended 5 April 2023, the tax will be due for payment by that date. If your tax return showed a refund was due but you have not yet received it, please let us know as some refunds are not being paid automatically so we may need to contact HMRC for you.

Please don't forget that if you are writing to or visiting our Penarth office, we are now at Office 10, Workspace Penarth, Albert Road, Penarth, CF64 1FD. Our telephone numbers and email addresses have not changed.

Side-hustle tax

HMRC runs many “nudge” campaigns and writes to taxpayers who may not have declared their income or gains correctly to ask them to check their position.

It uses its bulk data gathering powers to obtain data on sellers' details from various sources such online selling platforms, like eBay, Airbnb as well as from other places such as the Land Registry and Companies House and last year it wrote “nudge” letters to online sellers.

HMRC notes traders' names and addresses, compares selling turnover from various platforms, checks for tax registration and if a trader is not registered, considers whether they are trading at a level that constitutes a business.

There is no new tax, HMRC is just focusing on external data it is gathering to check compliance with tax rules and this is increasingly how taxpayers are then approached by HMRC. Many media reports on this are misleading, but if you have a source of income that you are not sure counts as taxable trade or a tax-free hobby, please contact us for advice as your tax position will depend on your exact circumstances.

HMRC “one to many” letters

HMRC is continuing its letter campaigns and the latest one targets landlords claiming tax relief on high levels of repair costs.

HMRC began sending letters in December 2023 to landlords who, according to HMRC data, claimed higher levels of expenditure on repairs than other landlords with similar income and also asks landlords to check their finance cost claims. If you receive a letter, please contact us for advice. We recommend that if you are a landlord and undertake property repairs, you keep a detailed record of the work to enable it to be correctly categorised between repair work and capital costs and we are happy to advise on this further.

Latest guidance for employers

HMRC has published the latest issue of the Employer Bulletin. The December issue has information on various topics, including:

• National Minimum Wage, Geographical Compliance Approach - support for employers
• payrolling expenses and benefits for the 2024/25 tax year
• off payroll working rules (IR35) - opportunity to pause settlement
• help to check if work qualifies for Research and Development tax relief
• make sure you stay on top of your workplace pension duties
• Childcare Choices - helping families to juggle work and life.

Please contact us for help with tax matters.

Spring Budget 2024 date confirmed for 6 March

Chancellor Jeremy Hunt will deliver the 2024 Spring Budget on 6 March, the government has confirmed.

The Budget will include the government's tax and spending plans as well as new growth and borrowing forecasts and could be the last chance for the government to announce significant changes to tax policy before the general election.

The Chancellor used his last big fiscal speech, the Autumn Statement, to extend tax breaks for business and cut National Insurance contributions (NICs).