https://www.litrg.org.uk/ en https://www.litrg.org.uk/announcements/new-tipping-law-now-force Because of the ‘Tipping Act’, which came into force on 1 October 2024, more workers may now receive tips or receive them in different ways. Here we remind you that tips are taxable income and point you to the guidance on our website that explains what this means for you.  Fri, 04 Oct 2024 13:43:16 BST lthompson@litrg.org.uk /node/10969 https://www.litrg.org.uk/news/working-students-check-your-tax Starting or returning to studying this autumn? Planning on earning some money to help fund your way through your course? It’s important to understand your tax. Working students are taxed in the same way as other employees. This means that if you get an employed job – for example working shifts around your studies – you will need to check your Pay As You Earn (PAYE) tax code to check you are paying the right tax. And if you have a ‘side hustle’, such as earning money through online platforms, you need to make sure you get your tax right. Use our guidance to help you!  Fri, 27 Sep 2024 10:15:33 BST lthompson@litrg.org.uk /node/10968 https://www.litrg.org.uk/news/scottish-taxpayers-dont-miss-out-extra-tax-relief-your-pension-contributions If you are a Scottish taxpayer with taxable income of more than £26,561 per year, and you are paying into a pension scheme, you may be able to claim extra tax relief on top of the tax relief you receive automatically. In this article, we explain the tax relief available for the two main types of pension scheme, as well as when and how you can claim extra tax relief. Mon, 23 Sep 2024 9:06:11 BST lthompson@litrg.org.uk /node/10963 https://www.litrg.org.uk/press-release/hmrc-must-act-now-defuse-side-hustle-time-bomb The Low Incomes Tax Reform Group (LITRG) is warning that the spectre of another ‘side hustle’ tax controversy looms as online platforms like eBay, Vinted and Deliveroo start sending reports to HMRC on the income of their sellers in January. Wed, 18 Sep 2024 9:15:14 BST lthompson@litrg.org.uk /node/10966 https://www.litrg.org.uk/reports/online-platforms-changing-landscape-self-employed We are pleased to publish our position paper setting out how the experience of the tax system for online traders can be improved following the increased use of online platforms such as eBay, Uber and Deliveroo.  Wed, 18 Sep 2024 9:15:00 BST lthompson@litrg.org.uk /node/10960 https://www.litrg.org.uk/news/do-you-need-register-self-assessment-dont-miss-deadline-5-october-2024 If you have a new source of taxable income which started between 6 April 2023 and 5 April 2024, which you may need to pay tax and/or national insurance on, you may need to fill in a tax return. If you do not already complete self assessment tax returns, you must notify HMRC of the type of income you have by 5 October 2024 so you can be brought into the self assessment system and pay any tax due by 31 January 2025.  You might also need to be brought into self assessment for 2023/24 if you have had an increase in income in the period 6 April 2023 to 5 April 2024 that was previously outside HMRC’s self assessment reporting rules.  In this article we explain who needs to register for self assessment now and how to do this. Tue, 17 Sep 2024 15:07:57 BST lthompson@litrg.org.uk /node/10964 https://www.litrg.org.uk/news/why-am-i-being-asked-vat-number-sell-online-platform Online platforms are now required to collect information about certain people selling goods or services through their site, and report it to HMRC. Because of this, they may have changed their sign-up processes (sometimes called ‘onboarding’ processes) and the questions they are asking. Here we help you understand what to do if you are asked for a VAT number.  Mon, 16 Sep 2024 14:07:05 BST lthompson@litrg.org.uk /node/10962 https://www.litrg.org.uk/submissions/budget-representation-2024 The Low Incomes Tax Reform Group (LITRG) is pleased to have the opportunity to make a budget representation 2024 in relation to the gig economy and OECD online platform reporting rules.  Mon, 09 Sep 2024 11:45:27 BST lthompson@litrg.org.uk /node/10961 https://www.litrg.org.uk/blog-post/taxation-dividend-income-have-hmrc-failed-keep The dividend allowance has reduced significantly in recent times, and from 6 April 2024 is only £500. Anyone who receives dividends of more than £500 in a tax year will now have to pay tax on that income, unless their total income falls below the normal tax free personal allowance. But are HMRC doing enough to make people aware of this? And how are people supposed to report the income? Here we look at what has changed with the taxation of dividends in recent years, and consider if HMRC’s processes have kept up with the changes. Tue, 03 Sep 2024 13:17:41 BST lthompson@litrg.org.uk /node/10959 https://www.litrg.org.uk/blog-post/elective-deductions-model-edm-explainer-advisers The EDM is a concerning model of engagement aimed at low paid workers in the temporary labour market, which exploits the fault line between employment law status and tax law status. We have had guidance on our website to help workers steer clear of the EDM for many years. However, recently there appears to have been an increase in its use. As it may be useful to advisers of workers or businesses in supply chains, here we look at the model in more detail, explain what is behind the increase and set out what we think HMRC should do about it.  Fri, 30 Aug 2024 10:48:00 BST lthompson@litrg.org.uk /node/10958 https://www.litrg.org.uk/news/warning-tax-scam-letter We have been made aware of a fraudulent letter being sent to individuals, supposedly from HMRC, asking them to send identification and business documents by email. We have checked with HMRC and this letter is a scam. Here we look at the ways you can protect yourself against this scam, and the important things to check to satisfy yourself that a letter from HMRC is genuine. Tue, 27 Aug 2024 16:09:38 BST lthompson@litrg.org.uk /node/10957 https://www.litrg.org.uk/news/received-unexpected-communication-hmrc-it-could-be-part-one-many-approach Have you received a communication from HM Revenue and Customs (HMRC) suggesting your tax might be wrong and/or asking you to double-check your tax position? If this communication seems to be written quite generally and is not a formal enquiry notice or compliance check, it may be part of a ‘one to many’ (OTM) approach. If you receive an OTM message from HMRC, it is important that you do not ignore it. Read on to find out more about the different types of OTM message and what to do if you receive one. Fri, 23 Aug 2024 10:00:00 BST lthompson@litrg.org.uk /node/10956 https://www.litrg.org.uk/news/do-you-understand-how-scottish-income-tax-works A recent poll suggests a lot of adults in the UK do not understand how income tax works. It is important to know how income tax works, as it might affect decisions you make in relation to work or your finances. In this article we try to demystify Scottish income tax and how different rates apply to your income, making use of examples and a new graphic. Mon, 19 Aug 2024 10:00:00 BST lthompson@litrg.org.uk /node/10954 https://www.litrg.org.uk/news/do-you-understand-how-income-tax-works A recent poll suggests a lot of adults in the UK do not understand how income tax works. It is important to know how income tax works, as it might affect decisions you make in relation to work or your finances. In this article we try to demystify income tax and how different rates apply to your income, making use of examples and a new graphic. Mon, 19 Aug 2024 10:00:00 BST lthompson@litrg.org.uk /node/10953 https://www.litrg.org.uk/news/p800-tax-refund-letters-action-needed HMRC are currently sending out P800 tax calculations to certain people who paid tax under Pay As You Earn in the 2023/24 tax year. If you receive a P800 showing that you have paid too much tax, you will be due a repayment. But beware – the way HMRC issue repayments to most people has recently changed. This article explains what you need to know and how you can get the money you are owed. Fri, 16 Aug 2024 12:57:05 BST lthompson@litrg.org.uk /node/10955 https://www.litrg.org.uk/news/home-responsibilities-protection-did-you-claim-child-benefit-may-2000 Some parents and carers who claimed child benefit before May 2000 may have missed out on Home Responsibilities Protection (HRP), a scheme designed to protect their state pension entitlement. HMRC are writing to people who they think might be affected to explain how they can check and claim for missing HRP. Whether you are already claiming state pension, are approaching retirement age, or are still a fair way off from reaching state pension age, it’s important to check that your National Insurance record is not missing any HRP that you were entitled to. This guide will help you understand HRP, why some people missed out, and how you can make a claim now to maximise your state pension. Tue, 13 Aug 2024 10:00:00 BST lthompson@litrg.org.uk /node/10950 https://www.litrg.org.uk/submissions/finance-and-public-administration-committee-inquiry-managing-scotlands-public-finances-strategic The Finance and Public Administration Committee of the Scottish Parliament are carrying out their pre-budget scrutiny in respect of the Scottish Budget 2025-26. Their inquiry focuses on three key areas. The LITRG response focuses on the second of these, which relates to the Scottish Government’s approach to taxation. The inquiry considers what the draft tax strategy should include and how potential behavioural responses affect business and individuals. This is to aid the achievement of the aims of the inquiry, which include to influence development of the Scottish Government’s tax strategy. Mon, 12 Aug 2024 10:00:00 BST lthompson@litrg.org.uk /node/10949 https://www.litrg.org.uk/news/have-you-received-simple-assessment-letter-hmrc HMRC are sending simple assessment letters to about 560,000 taxpayers over the next few months. This number includes 140,000 pensioners. For many, this will be the first time they have received a simple assessment letter. In this article, we explain more about simple assessment and what you need to do if you receive one in the coming months. Wed, 07 Aug 2024 11:29:24 BST lthompson@litrg.org.uk /node/10948 https://www.litrg.org.uk/news/universal-credit-people-working-through-their-own-limited-company Not everyone that works through their own limited company is a high earner. If you have a lower income, have a fall in income or are unable to work for the moment, you may need to make a claim for universal credit. If you are in this situation, read on.  Thu, 01 Aug 2024 11:33:02 BST lthompson@litrg.org.uk /node/10946 https://www.litrg.org.uk/blog-post/understanding-taxes-empowerment-and-engagement Taxes are an integral part of our lives; most of us pay tax, whether income tax, council tax or VAT on things we buy. Taxes also play an important role in shaping the infrastructure of our society. Yet, there is sometimes a lack of understanding and awareness of taxes and how the tax system works among the general public. This may be because of complexity, but it can also be a result of the way in which some tax systems operate. For example, the pay as you earn (PAYE) system through which you pay tax on your wages or pension is designed to minimise taxpayer involvement. Improving tax education can provide numerous benefits, from better understanding and awareness of the tax system to enhanced civic engagement. In this blog, we will explore the importance of tax education and the positive impacts of greater tax literacy. Thu, 01 Aug 2024 9:11:32 BST lthompson@litrg.org.uk /node/10947 https://www.litrg.org.uk/news/do-you-travel-work-find-out-what-tax-relief-you-can-get-cost-your-meals If you are an employee and you have to travel within the UK in relation to your work, you may have to pay for other travel-related expenses too, like meals (subsistence) or overnight accommodation. Your employer may reimburse you for these expenses – in this article we explain the tax and NIC treatment of these payments. If your employer does not reimburse these travel-related business costs fully, you may be able to claim tax relief for them from HMRC. We explain when you might be able to do this. Tue, 30 Jul 2024 11:06:51 BST lthompson@litrg.org.uk /node/10944 https://www.litrg.org.uk/news/are-you-making-most-tax-free-and-tax-efficient-ways-saving-uk As more people are having to pay tax on their investment income, here we remind you of some tax-free and tax efficient savings options that may be available to you. Fri, 26 Jul 2024 11:19:07 BST lthompson@litrg.org.uk /node/10945 https://www.litrg.org.uk/news/marriage-allowance-and-importance-timing The marriage allowance (also known as the transferable tax allowance for married couples and civil partners) allows you to give up some of your personal allowance to provide a tax credit for your spouse or civil partner. This can reduce the amount of tax that they pay. The timing of your claim can affect the start date. The decision of when to cancel or withdraw a claim can also determine when the withdrawal takes effect. This can be complex and can affect whether you and your spouse or civil partner make best use of the marriage allowance. We explain the importance of timing in relation to marriage allowance claims in more detail below.  Wed, 24 Jul 2024 10:19:24 BST lthompson@litrg.org.uk /node/10943 https://www.litrg.org.uk/news/where-find-your-cis-details If you are a subcontractor paid under the construction industry scheme (CIS) and need your pay and tax information to complete your tax return, here we tell you how to find the information - and what to do if you can’t locate it. Fri, 19 Jul 2024 11:47:01 BST lthompson@litrg.org.uk /node/10942 https://www.litrg.org.uk/news/electric-or-petroldiesel-vehicles-business-travel-tax-relief Employers do not have to pay employees for their business travel. However, some employers may reimburse you partly or fully for business mileage in either a company car or your own car. We explain how these different employer payments are treated for tax. If your employer does not reimburse your business mileage costs fully or at all, you may be able to claim tax relief from HMRC. We explain when you might be able to do this. We include a look at electric vehicles, as more employers are offering these to their entire workforce via salary sacrifice schemes.  Tue, 16 Jul 2024 9:11:38 BST lthompson@litrg.org.uk /node/10940 https://www.litrg.org.uk/news/update-hmrc-voluntary-class-2-nics-error-check-your-202223-record Please note: this news article was originally published on 8 July 2024 and was updated on 26 July 2024 following confirmation from HMRC that they will write to affected taxpayers.  HMRC have admitted that a processing error occurred with voluntary class 2 National Insurance contributions (NICs) for the 2022/23 tax year. These payments are usually made by some self-employed people with low profits.  If you opted to pay voluntary class 2 NICs on your tax return last year, it is important that you check that the payment was properly allocated to your National Insurance record. If not, you might lose out on a qualifying year for NIC purposes. Here we explain the problem and help you understand what you need to do if you think you might be affected. Mon, 08 Jul 2024 11:25:59 BST lthompson@litrg.org.uk /node/10939 https://www.litrg.org.uk/news/child-trust-funds-how-find-lost-account-its-easy-and-free Are you approaching the age of 18, or have you recently turned 18? You might have had a Child Trust Fund set up for you shortly after you were born. You are able to access this when you turn 18. Here we look at what Child Trust Funds are, and the various ways you can search for yours if you or your parents/guardians don’t have the details of it. We also include a word of caution about using firms that might charge you a fee to find your Child Trust Fund. Mon, 01 Jul 2024 14:38:17 BST lthompson@litrg.org.uk /node/10938 https://www.litrg.org.uk/submissions/draft-legislation-penalties-failure-pay-tax-assessments-regulations-2024-joint-litrg-and-ciot Penalties for late payment of tax are being reformed. The new rules have applied to taxpayers in respect of VAT obligations since 1 January 2023 and to taxpayers voluntarily in scope of Making Tax Digital for Income Tax Self Assessment since 6 April 2024. LITRG and the CIOT have commented on the draft legislation which aims to give HMRC the power to assess the second late payment penalty in circumstances where the amount of tax is still outstanding after two years. Fri, 21 Jun 2024 15:27:05 BST lthompson@litrg.org.uk /node/10936 https://www.litrg.org.uk/news/tax-credits-renewals-and-next-steps-tax-credits-come-end HMRC are currently sending tax credit claimants their annual renewal packs. The renewal process allows HMRC to finalise tax credit awards for the 2023/2024 year and set up new renewal claims for 2024/2025 (if appropriate). Universal credit is gradually replacing tax credits and so, like last year, the renewal packs this year will include a flyer about universal credit. The flyer is just for information and is not a formal migration notice. Thu, 20 Jun 2024 15:46:11 BST lthompson@litrg.org.uk /node/10934 https://www.litrg.org.uk/news/hiring-carer-or-personal-assistant If you are hiring a carer or personal assistant, whether funded through government money, or privately, you can use our new flowchart to help you work out what, if anything, you need to do about tax. For example, if you are hiring someone and the nature of the arrangement is an ‘employment’ you will need to operate Pay As You Earn (PAYE) on their wages. It is important to get this right. Contrary to what you may understand or have been told, you cannot just pay your carer or personal assistant as though they are self-employed and think no more about it! Thu, 20 Jun 2024 11:27:02 BST lthompson@litrg.org.uk /node/10933 https://www.litrg.org.uk/news/taking-pension-under-age-55-watch-out-scams If you are struggling financially, you may be tempted to withdraw money from your pension to help you out. This may not always be a good idea. There is a minimum age to take money from a UK registered pension (usually 55). If you take money out sooner, you are likely to face large tax charges. The scheme may be a scam – so you may face high fees and the rest of your savings may be stolen. So, know the warning signs of pension scams and don’t get caught out. Wed, 19 Jun 2024 16:46:25 BST lthompson@litrg.org.uk /node/10932 https://www.litrg.org.uk/news/flexible-working-tax-guidance Starting any new job can be daunting, but in flexible work, pay, tax or benefits can be more complicated than usual. Flexible working covers many different types of arrangements – temporary, casual, platform, contracting, flexitime, remote working etc. If you have any questions about your tax position in any of these arrangements, you will be pleased to know we cover all these scenarios, and more, in our website guidance! Mon, 10 Jun 2024 16:23:07 BST lthompson@litrg.org.uk /node/10929 https://www.litrg.org.uk/blog-post/untaxed-income-are-you-confused-about-when-and-how-tell-hmrc Readers have been contacting us as they aren’t sure whether they need to tell HMRC about income that they have received gross (without tax taken off before they get it). Unfortunately, there is no easy answer as there are different sets of criteria you need to consider. Also, the law and HMRC guidance is not completely clear. Below we look at what you can do and how we think the system could be improved. We would also like to hear your experiences, so please tell us what you think! Mon, 10 Jun 2024 11:54:55 BST lthompson@litrg.org.uk /node/10926 https://www.litrg.org.uk/submissions/low-pay-commission-consultation-2024 We have responded to the Low Pay Commission (LPC) consultation 2024, taking the opportunity to highlight two recent developments in the labour market with both tax and National Minimum Wage (NMW) considerations.  Wed, 05 Jun 2024 13:17:04 BST lthompson@litrg.org.uk /node/10925 https://www.litrg.org.uk/submissions/public-accounts-committee-inquiry-hmrc-customer-service LITRG has submitted a response to the Public Accounts Committee inquiry into HMRC customer service.  Thu, 30 May 2024 12:53:11 BST tkinson@ciot.org.uk /node/10923 https://www.litrg.org.uk/submissions/raising-standards-tax-advice-market-litrg-response LITRG has responded to HMRC’s consultation on raising standards in the tax advice market. Thu, 30 May 2024 12:39:11 BST tkinson@ciot.org.uk /node/10922 https://www.litrg.org.uk/submissions/finance-no-2-bill-2023-24-briefing-high-income-child-benefit-charge-changes LITRG has issued a briefing to MPs on clause 5 of the Finance (No. 2) Bill 2023-24, which covers changes to the high income child benefit charge from 6 April 2024.  Thu, 23 May 2024 14:26:31 BST tkinson@ciot.org.uk /node/10921 https://www.litrg.org.uk/blog-post/when-expense-not-expense Carer’s allowance has featured heavily in news over the last few weeks – in particular, reports of carer’s allowance being clawed back due to breaches of the earnings limit threshold. There are several reasons why the earnings limit threshold may appear to be exceeded, but in this blog we explore one issue that can potentially lead to an overpayment of carer’s allowance – carers claiming deductions from income for expenses that they think qualify, but don’t.  Tue, 21 May 2024 13:10:21 BST tkinson@ciot.org.uk /node/10920 https://www.litrg.org.uk/press-release/litrgs-work-recognised-prestigious-tax-awards The Low Incomes Tax Reform Group (LITRG) has been honoured with a prestigious tax award. Fri, 17 May 2024 11:04:33 BST lthompson@litrg.org.uk /node/10919 https://www.litrg.org.uk/press-release/child-trust-funds-find-them-free The Low Incomes Tax Reform Group has urged young people to use a free HMRC tool to check if they have a Child Trust Fund (CTF), following concerns that some firms could be charging hundreds of pounds to trace and help withdraw the value of the fund.  Thu, 16 May 2024 16:32:35 BST lthompson@litrg.org.uk /node/10918 https://www.litrg.org.uk/news/umbrella-company-news-and-developments Since the umbrella company consultation closed in August 2023, we have written several articles for ContractorUK on the topic, which we summarise here. Thu, 16 May 2024 12:18:48 BST lthompson@litrg.org.uk /node/10917 https://www.litrg.org.uk/news/keeping-business-records-digital-age As it’s a new tax year, some sole traders, partnerships or landlords may be tempted to throw away last tax year’s receipts. Business records can include documents such as bank statements, sales invoices and expense receipts. However, there is a legal requirement to keep these records to support the entries on your tax return for a certain period of time. This article looks at what business records look like in this digital age and explains how long you need to keep these records for. It also includes some tips to help you with your record keeping.  Thu, 16 May 2024 9:30:05 BST lthompson@litrg.org.uk /node/10916 https://www.litrg.org.uk/press-release/litrg-nao-right-call-out-sluggish-hmrc-service-levels The Low Incomes Tax Reform Group (LITRG) has issued an initial reaction to the National Audit Office’s report into HMRC’s customer service1. Wed, 15 May 2024 10:53:24 BST lthompson@litrg.org.uk /node/10915 https://www.litrg.org.uk/news/taxation-awards-2024-litrg-nomination We are delighted to have been shortlisted in the ‘outstanding contribution to taxation in 2023/24 by a not-for-profit organisation’ category at the prestigious annual Tolley’s Taxation Awards. This is especially fitting as LITRG celebrated its 25th anniversary in 2023.  Tue, 14 May 2024 9:21:03 BST lthompson@litrg.org.uk /node/10914 https://www.litrg.org.uk/press-release/litrg-responds-extra-hmrc-phone-funding-announcement The Low Incomes Tax Reform Group (LITRG) has responded to the government’s announcement that it will provide HMRC with £51 million in new funding to support its telephone helpline services1.  Mon, 13 May 2024 17:00:06 BST lthompson@litrg.org.uk /node/10913 https://www.litrg.org.uk/news/late-tax-return-penalties-do-you-have-reasonable-excuse If you miss the self assessment tax return deadline, HMRC will automatically send you a 'late filing penalty’ notice.  Penalties start to increase the longer the tax return is outstanding. If you didn’t get your 2022/23 tax return submitted by 31 January 2024 and still have not sent it in, you might start to see daily penalties being applied from the start of this month. But what if you were unable to submit your tax return on time for reasons outside of your control? It is sometimes possible to appeal late filing penalties if you can show that you had a ‘reasonable excuse’. We know that for 2022/23 tax returns, some people especially struggled with HMRC changing the way they do things. If changes to HMRC services affected you submitting your tax return on time, you might look at whether you could argue you had a reasonable excuse.  Mon, 13 May 2024 13:38:18 BST lthompson@litrg.org.uk /node/10912 https://www.litrg.org.uk/press-release/litrg-website-relaunched-provide-accessible-tax-information The Low Incomes Tax Reform Group (LITRG) has launched its newly re-designed website, which will continue to provide a valuable resource for taxpayers, journalists and others who need help and information on the UK tax system. Fri, 10 May 2024 14:57:06 BST lthompson@litrg.org.uk /node/10911 https://www.litrg.org.uk/submissions/tax-administration-framework-review-enquiry-and-assessment-powers-penalties-safeguards-litrg LITRG has responded to the latest call for evidence under the Tax Administration Framework Review, on enquiry and assessment powers, penalties and safeguards.  Wed, 08 May 2024 11:14:08 BST lthompson@litrg.org.uk /node/10910 https://www.litrg.org.uk/announcements/vat-email-scam-alert HMRC have identified a new VAT email scam which encourages people to scan a QR code. Tue, 07 May 2024 16:00:41 BST lthompson@litrg.org.uk /node/10909 https://www.litrg.org.uk/announcements/our-updated-self-employment-tax-guide-available-now Our free publication ‘Self-employment: A LITRG guide’ has recently been updated and is now available to download. It is aimed at those who are self-employed or in a partnership. It will also be very helpful to voluntary sector advisers and other non-tax specialists who advise low-income self-employed individuals. Fri, 03 May 2024 13:14:50 BST lthompson@litrg.org.uk /node/10908 https://www.litrg.org.uk/press-release/hmrc-error-means-self-employed-workers-could-lose-out-national-insurance-related-benefits The Low Incomes Tax Reform Group (LITRG) is warning that an HMRC error could mean that some low-income, self-employed workers lose out on their entitlement to National Insurance-related benefits like the state pension unless they take action. Fri, 03 May 2024 11:32:52 BST lthompson@litrg.org.uk /node/10907 https://www.litrg.org.uk/news/check-your-student-loan-repayments Many graduates make student loan repayments through the Pay As You Earn (PAYE) system, if they are employed and earn over their relevant loan plan threshold. Usually, the loan repayment thresholds change at the beginning of each tax year. Check your April payslip to make sure your repayment is correct.  Tue, 30 Apr 2024 12:50:11 BST lthompson@litrg.org.uk /node/10906 https://www.litrg.org.uk/news/how-hmrcs-app-can-potentially-help-make-your-life-easier HMRC’s revamped app provides a convenient and user-friendly way to access your details and help you manage your taxes. In this article, we explore the app and list some of the useful things that you can do in it - including several that may offer you important information about your finances and others that could save you a lengthy wait on a HMRC phone line. Mon, 29 Apr 2024 11:33:03 BST lthompson@litrg.org.uk /node/10905 https://www.litrg.org.uk/submissions/public-accounts-committee-inquiry-universal-credit LITRG submitted a response to the Public Accounts Committee inquiry into DWP’s progress in implementing universal credit.  Mon, 22 Apr 2024 11:29:37 BST lthompson@litrg.org.uk /node/10903 https://www.litrg.org.uk/press-release/be-aware-tax-obligations-when-investing-cryptoassets-say-tax-professionals Cryptoasset investors should keep up-to-date records to ensure they pay the right amount of tax, the Chartered Institute of Taxation (CIOT) and its Low Incomes Tax Reform Group (LITRG) have warned. Mon, 22 Apr 2024 9:37:40 BST lthompson@litrg.org.uk /node/10902 https://www.litrg.org.uk/press-release/week-53-tax-year-could-mean-unexpected-tax-bills-warns-litrg Thousands of UK employees could face an unexpected tax bill this year due to a little-known quirk in the tax system, the Low Incomes Tax Reform Group (LITRG) has warned. Tue, 02 Apr 2024 16:36:52 BST lthompson@litrg.org.uk /node/10900 https://www.litrg.org.uk/news/scottish-income-tax-scottish-taxpayers-202425 From 6 April 2024, there are six rates and bands of Scottish income tax that apply to the non-savings and non-dividend income of Scottish taxpayers. We set out what this means for Scottish taxpayers. Tue, 02 Apr 2024 10:44:28 BST lthompson@litrg.org.uk /node/10899 https://www.litrg.org.uk/news/time-running-out-claim-201920-tax-refunds In some situations, you need to actively claim a tax refund if one is due to you. These include refunds that relate to claims for the marriage allowance, tax relief on job-related expenses, and payment protection insurance (PPI) pay-outs where too much tax has been withheld at source. For refunds relating to the 2019/20 tax year, act now! You need to make your claim by 5 April 2024.  Wed, 27 Mar 2024 13:37:39 GMT tkinson@ciot.org.uk /node/10898 https://www.litrg.org.uk/news/important-information-employees-being-paid-4th-or-5th-april-2024 There are 53 Thursdays and Fridays in the 2023/24 tax year, rather than 52. If you are weekly paid and will be paid on Thursday 4th or Friday 5th April, then you may encounter a ‘week 53’ issue which could impact your tax position.  Tue, 26 Mar 2024 9:03:11 GMT lthompson@litrg.org.uk /node/10897 https://www.litrg.org.uk/blog-post/side-hustle-tax-challenge The beginning of 2024 saw much confusion over how so-called ‘side hustles’ are taxed. This was prompted by the introduction of new reporting rules for online platforms, which mean HMRC will get information about online sales of goods and services from next year. So where did the confusion come from? And what might be done to improve matters in future?  Fri, 22 Mar 2024 11:09:44 GMT lthompson@litrg.org.uk /node/10896 https://www.litrg.org.uk/press-release/hmrc-helplines-institute-welcomes-halting-cuts The Chartered Institute of Taxation (CIOT) and its Low Incomes Tax Reform Group (LITRG) have welcomed today’s announcement1 by HMRC that they will be putting planned helpline closures on hold while they consider how best to help taxpayers harness online services. Wed, 20 Mar 2024 13:02:52 GMT lthompson@litrg.org.uk /node/10894 https://www.litrg.org.uk/press-release/self-assessment-phone-line-closure-disappointing-not-unexpected The Low Incomes Tax Reform Group (LITRG) has responded with disappointment to the announcement1 that HMRC are to permanently close their self assessment helpline for six months of the year and reduce access to the line at other times of the year.  Tue, 19 Mar 2024 11:01:37 GMT lthompson@litrg.org.uk /node/10892 https://www.litrg.org.uk/press-release/household-income-assessment-child-benefit-charge-possibly-fairer-far-simple-says-litrg The Low Incomes Tax Reform Group (LITRG) has said today’s Budget decision to increase the high income child benefit charge threshold to £60,000 from April 2024 will bring the scope of the charge closer to the original policy intent, but has cautioned that the plan for the tax charge to be based on joint household incomes by April 2026 may be complex, costly and difficult to achieve.1 Wed, 06 Mar 2024 17:16:02 GMT lthompson@litrg.org.uk /node/10888 https://www.litrg.org.uk/news/what-does-having-utr-actually-mean We often get asked questions about UTR (Unique Taxpayer Reference) numbers. There is a lot of misunderstanding about what a UTR is and what it isn’t. For example, did you know that having a UTR does not necessarily mean someone is self-employed? Read on to find out more about what a UTR does and doesn’t mean.  Wed, 28 Feb 2024 10:32:31 GMT lthompson@litrg.org.uk /node/10887 https://www.litrg.org.uk/press-release/pac-report-highlights-problem-poor-hmrc-service-levels The Low Incomes Tax Reform Group (LITRG) has welcomed the publication of a report by the House of Commons’ Public Accounts Committee highlighting the ‘conscious choices’ being made by HMRC and HM Treasury that have resulted in the continuing deterioration of HMRC customer service levels. Wed, 28 Feb 2024 9:05:06 GMT lthompson@litrg.org.uk /node/10886 https://www.litrg.org.uk/news/check-your-paye-code-carefully HM Revenue & Customs (HMRC) have started to issue PAYE codes for the next tax year – 2024/25. You may receive a paper coding notice (form P2), or alternatively an email notification that your new code is available to see in your personal tax account (PTA). In this article, we look at some of the tax code issues that are cropping up for taxpayers. Fri, 23 Feb 2024 8:58:30 GMT lthompson@litrg.org.uk /node/10885 https://www.litrg.org.uk/news/changes-reporting-income-self-employment-and-partnerships This month HMRC are writing to around 100,000 unrepresented self-employed individuals or trading partnerships who do not have an accounting period ending between 31 March and 5 April. The letter is highlighting significant new changes to how these businesses will need to report their accounting information on their tax returns, which affects what profits they pay tax on in a tax year. These changes known as ‘basis period reform’ or ‘reporting on a tax year basis’, will affect the 2023/24 tax return onwards.  Wed, 21 Feb 2024 16:14:13 GMT lthompson@litrg.org.uk /node/10884 https://www.litrg.org.uk/news/tips-follow-when-submitting-p87-tax-refund-form HMRC issue some tax refunds automatically. In other cases, you need to actively claim tax refunds. For example, for job-related expenses that you paid for yourself, you need to make a claim by completing form P87. For refunds relating to the 2019/20 tax year, you need to make your claim by 5 April 2024. It is important that you complete the P87 correctly, so that it gets processed without delay. This article gives some tips to follow when submitting a P87 tax refund form.  Tue, 20 Feb 2024 10:31:37 GMT lthompson@litrg.org.uk /node/10883 https://www.litrg.org.uk/announcements/announcement-cost-living-payment-tax-credit-claimants From today, 16 February 2024, HMRC is making cost of living payments to eligible tax credit claimants. The payments will be made between 16 and 22 February 2024.  Fri, 16 Feb 2024 16:08:15 GMT lthompson@litrg.org.uk /node/10879 https://www.litrg.org.uk/submissions/tipping-act-code-practice Under the Tipping Act, the government must introduce a new code of practice to help ensure that employers are distributing tips fairly and transparently. The government is inviting feedback to ensure this code is as helpful as possible.  Fri, 16 Feb 2024 15:21:46 GMT lthompson@litrg.org.uk /node/10878 https://www.litrg.org.uk/announcements/have-your-say-hmrcs-service Every year, HM Revenue & Customs (HMRC) publish a report on their Charter. These reports set out HMRC’s performance against the HMRC Charter. This is your chance to complete a survey and tell us how you think HMRC have performed. We will use your feedback when we write our comments for the HMRC report. Mon, 12 Feb 2024 12:15:18 GMT lthompson@litrg.org.uk /node/10871 https://www.litrg.org.uk/announcements/announcement-hmrc-cost-living-payment-text-messages Today, 9 February 2024, HMRC will be sending a text message to eligible tax credit claimants reminding them of the payment dates for the next cost of living payment.   Fri, 09 Feb 2024 16:02:42 GMT lthompson@litrg.org.uk /node/10874 https://www.litrg.org.uk/blog-post/council-tax-where-do-we-go-here Various attempts are being made by the governments in Scotland and Wales to make council tax ‘fairer’. We take a look at some of the reasons for the perceived unfairness of council tax, and some of the suggestions as to how to resolve this. Fri, 09 Feb 2024 13:05:18 GMT lthompson@litrg.org.uk /node/10873 https://www.litrg.org.uk/news/side-hustle-tax-mythbuster The noise about ‘side hustle tax’ is showing no signs of dying down and we are still seeing incorrect information circulating online about the tax position of people selling items via online platforms. We previously published a flowchart trying to provide clarity on the rules. In this, our third article on the topic, we dispel five of the biggest myths we have seen circulating.  Fri, 09 Feb 2024 10:51:40 GMT lthompson@litrg.org.uk /node/10872 https://www.litrg.org.uk/submissions/public-accounts-committee-inquiry-hmrc-standard-report-2022-23 LITRG submitted a response to the Public Accounts Committee inquiry into HMRC’s 2022-23 Standard Report. Thu, 08 Feb 2024 9:49:31 GMT lthompson@litrg.org.uk /node/10869 https://www.litrg.org.uk/blog-post/tax-state-pensions-looking-back-and-ahead State pensions are increasing in April 2024, but the point at which most people start to pay tax is staying the same. Here we look ahead some of the problems this might cause. We also give our ideas on how the government could make things easier for state pensioners – some of which we originally suggested in 2007! Thu, 01 Feb 2024 13:10:30 GMT lthompson@litrg.org.uk /node/10844 https://www.litrg.org.uk/submissions/care-leaver-payment-scotland LITRG submitted a response to the Scottish Government consultation on the development and delivery of the Care Leaver Payment. Wed, 24 Jan 2024 11:46:24 GMT lthompson@litrg.org.uk /node/10839 https://www.litrg.org.uk/submissions/hmrc-consultation-proposed-amendments-making-tax-digital-regulations HMRC published draft amended Regulations relating to Making Tax Digital for Income Tax legislation for consultation last month. The draft amendments were to mainly take account of the outcome of HMRC’s Small Business Review that it had undertaken in 2023. LITRG recently responded to the consultation. Fri, 19 Jan 2024 12:03:54 GMT lthompson@litrg.org.uk /node/10824 https://www.litrg.org.uk/news/time-running-out-31-january-self-assessment-deadline The deadline for sending most online 2022/23 self assessment tax returns to HMRC, and for paying the related tax, is 31 January 2024. If this deadline applies to you, make sure you file your 2022/23 tax return online and pay any tax you owe by 31 January 2024 to avoid penalties and interest. Wed, 17 Jan 2024 14:14:42 GMT lthompson@litrg.org.uk /node/10825 https://www.litrg.org.uk/submissions/finance-bill-briefing-clause-36-commencement-rules-imposing-penalties-failure-make-returns-etc Clause 36 is a regulation-making power which allows for the new penalty regime on late filing and late payment to be brought into effect for income tax from 6 April 2024, with adaptations for those volunteering for the Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA) pilot. Tue, 16 Jan 2024 11:51:49 GMT lthompson@litrg.org.uk /node/10805 https://www.litrg.org.uk/submissions/finance-bill-briefing-clause-16-and-schedule-10-provision-relating-cash-basis Clause 16 and Schedule 10 change the current rules for reporting information on self assessment tax returns for most unincorporated businesses. The aim is to allow more sole traders and partnerships to be eligible to use the cash basis rather than the accruals basis (also known as traditional accounting) which may simplify the preparation of their business accounts.  Tue, 16 Jan 2024 11:34:02 GMT lthompson@litrg.org.uk /node/10804 https://www.litrg.org.uk/news/more-side-hustle-tax-help Despite ongoing efforts by tax professionals up and down the land, we are still seeing a large amount of confusion about the ‘new’ side hustle tax reporting rules for online platforms. There is no new tax on side hustles. Here, we reiterate the main things you need to know, provide a new flowchart to help explain the tax rules and deal with some important emerging questions. Fri, 12 Jan 2024 14:20:00 GMT admin /node/2817 https://www.litrg.org.uk/submissions/employment-status-pas The Scottish Government is undertaking an inquiry into how the Social Care (Self-directed Support) (Scotland) Act 2013 has worked since it came into force. LITRG have submitted some comments focusing on the employment status of PAs. Fri, 12 Jan 2024 11:43:00 GMT admin /node/2816 https://www.litrg.org.uk/submissions/finance-bill-briefing-clause-32-and-schedule-13-disqualification-promoting-tax-avoidance Clause 32 and Schedule 13 introduce a new power, which allows His Majesty’s Revenue and Customs (HMRC) to apply to the court for a disqualification order. This is in relation to directors and other persons who control or exercise influence over a company involved in promoting tax avoidance and operating against the public interest. Fri, 12 Jan 2024 11:29:00 GMT admin /node/2815 https://www.litrg.org.uk/press-release/there-no-new-side-hustle-tax-say-tax-experts The Low Incomes Tax Reform Group has reassured those selling goods and services online that they won’t be subject to a new “side hustle tax”, despite information online in the past few days suggesting otherwise. Thu, 04 Jan 2024 9:52:00 GMT admin /node/2814 https://www.litrg.org.uk/news/new-rules-gig-economy-workers-your-questions-answered Many people make a living from doing things in the gig economy like driving, delivering, or freelancing - often via online platforms such as Uber, Deliveroo and TaskRabbit. Some new HMRC rules are coming into force in January 2024. This news has caused people making money from the gig economy, either as a full-time job or as a ‘side hustle’, to ask questions about their tax position. Here we explain the new rules from January 2024 and answer the most common questions. Wed, 13 Dec 2023 11:36:00 GMT admin /node/2813 https://www.litrg.org.uk/press-release/hmrcs-digital-shift-needs-taxpayer-buy The Low Incomes Tax Reform Group (LITRG) has responded to the news1 that between 11 December and 31 January, HMRC’s self assessment helpline will focus only on ‘priority queries’, with other enquiries directed online. Thu, 07 Dec 2023 12:50:00 GMT admin /node/2812 https://www.litrg.org.uk/news/ppi-tax-refunds-new-evidence-requirement Due to concerns over the nature and scale of R40 claims for PPI tax refunds being submitted by certain tax refund companies, HMRC will now require evidence before they progress a claim for a PPI tax refund. This is to ensure they are only processing claims that are correct and properly authorised by the taxpayer. Wed, 06 Dec 2023 14:32:00 GMT admin /node/2811 https://www.litrg.org.uk/news/new-government-guidance-umbrella-companies-top-5-takeaways-workers HMRC have published new guidance aimed at helping agencies that hand workers over to umbrella companies understand their legal responsibilities and keep their supply chain compliant. This good, clear guidance will also help workers better navigate through the world of umbrella working. Here we outline the key points from it. Fri, 01 Dec 2023 12:38:00 GMT admin /node/2809 https://www.litrg.org.uk/press-release/hmrc-must-mitigate-burden-digital-tax-reporting-smallest-businesses The Low Incomes Tax Reform Group (LITRG) has welcomed the main findings of the Public Accounts Committee’s review of HMRC’s progress with its Making Tax Digital (MTD) programme, as set out in its report published today, especially in relation to the impact on unrepresented taxpayers. Fri, 24 Nov 2023 10:27:00 GMT admin /node/2808 https://www.litrg.org.uk/press-release/wage-increase-employees-could-negatively-affect-low-income-self-employed Whilst welcoming yesterday’s announcement that the national living wage will increase to £11.44, the Low Incomes Tax Reform Group (LITRG) are highlighting that some self-employed universal credit claimants may be negatively impacted by the rate increase - even though they are not entitled to it. Thu, 23 Nov 2023 17:25:00 GMT admin /node/2807 https://www.litrg.org.uk/press-release/autumn-statement-2023-class-2-nic-change-simplification-and-saving-some-not-those-lowest-incomes In yesterday’s Autumn Statement, Chancellor Jeremy Hunt announced that Class 2 National Insurance Contributions (NIC) – normally paid by self-employed individuals – would be ‘abolished’ from next April.1 However the Low Incomes Tax Reform Group (LITRG) notes that this change does not benefit the lowest-income self-employed. Thu, 23 Nov 2023 17:16:00 GMT admin /node/2806 https://www.litrg.org.uk/news/5-questions-ask-yourself-setting-limited-company Whether you are starting a new business or are looking to develop an existing one, you may be considering setting up a limited company. Limited companies are cheap, easy to set up and may have certain benefits. But they can be difficult to run and expensive if things go wrong. You therefore need to think carefully before deciding to set one up! Wed, 22 Nov 2023 12:26:00 GMT admin /node/2805 https://www.litrg.org.uk/news/can-employees-claim-tax-relief-ulez-charges Owners of a vehicle that doesn't meet the Ultra Low Emission Zone (ULEZ) emissions standards and isn’t exempt must pay a £12.50 daily charge to drive within London boroughs. It has been confirmed by HMRC that self-employed drivers will be able to claim tax relief on the daily charge. But what about employees? Thu, 02 Nov 2023 11:06:00 GMT admin /node/2804 https://www.litrg.org.uk/submissions/autumn-statement-representation-2023 Tue, 17 Oct 2023 10:56:00 BST admin /node/2803 https://www.litrg.org.uk/submissions/salary-advance LITRG have responded to the technical consultation on proposed amendment regulations, which allow employers to delay reporting an advance payment of salary (salary advance) made to an employee until payment. Mon, 09 Oct 2023 11:14:00 BST admin /node/2802 https://www.litrg.org.uk/news/act-now-meet-31-october-paper-tax-return-deadline This year, HMRC decided to stop automatically sending out paper returns to many taxpayers. HMRC have also changed the downloadable version of the form to indicate it is now ‘for reference only’. If you need to complete your 2022/23 tax return on paper but have not yet received or ordered one from HMRC, act now! Wed, 04 Oct 2023 9:14:00 BST admin /node/2801 https://www.litrg.org.uk/press-release/failure-deal-revaluation-means-council-tax-will-remain-detached-reality Council tax in Scotland will remain ‘detached from reality’ unless ministers commit to a revaluation of properties to ensure they pay the correct amount of tax. Mon, 25 Sep 2023 10:28:00 BST admin /node/2800 https://www.litrg.org.uk/submissions/consultation-fairer-council-tax LITRG has responded to a consultation on a fairer council tax system for Scotland, published jointly by the Scottish Government and the Convention of Scottish Local Authorities (COSLA – on behalf of local government). Sat, 23 Sep 2023 13:56:00 BST admin /node/2799 https://www.litrg.org.uk/news/litrgs-top-tips-make-completing-your-tax-return-easier Now that the days are getting shorter as summer comes to an end, are you beginning to turn your attention to completing your 2022/23 self assessment tax return? If so, this article gives you some top tips to simplify the whole process for you. Tue, 19 Sep 2023 9:19:00 BST admin /node/2798