Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) is set to transform the way sole traders and landlords in the UK manage their taxes. It focuses on digital record-keeping, streamlining tax reporting, and encouraging the use of digital tax software, ultimately modernising the UK tax system.

If you’re feeling a bit overwhelmed by the changes, you’re certainly not alone. Many of our clients have expressed concerns about the new rules, which is why we’ve put together this guide to help you get to grips with MTD for ITSA. Here’s everything you need to know to stay ahead of the game.

#MakingTaxDigital #MTDforITSA #SelfAssessment

With the tax/financial year end approaching, now is a good time to check that you’re making the most of the available reliefs and allowances available to you. Please talk to us if you think any of the issues affect you.

#TaxPlanning #TaxTips #TaxAdvice

HMRC will reduce late payment and repayment interest rates from 25 February following the cut in the base rate. 

#HMRC #LatePayment # RepaymentInterestRates

We want to bring an important tax change to your attention that could impact your business vehicle decisions.

From 6 April 2025, double cab pick-up trucks will be reclassified as cars for tax purposes, affecting capital allowances, benefit-in-kind (BIK) taxation and may affect deductions from business profits. This marks a significant shift from the current treatment of these vehicles as commercial vans. However, VAT recovery rules will remain unchanged.

#DCPU #BusinessVehicleDecisions #BIK

Legislation was laid before Parliament last week confirming that the new National Living Wage and new Minimum Wage rates will take effect from 1 April 2025. 

#NLW #NMW #NationalMinimumWage #NationalLivingWage

The amount of State Pension you will receive is based on how many completed years you have in your NI record. Currently it is possible to review your record going back to 2006, and wh There is limited time to be able to do this though.

From 6 April 2025, you will only be able to make voluntary NI contributions for the previous 6 tax years. This means there is now less than two months left to be able to plug any gaps that go back to 2006. ere there is a gap, you can contribute to plug the gap.

#StatePension #RetirementPlanning #PensionTopUp

Starting a business in the UK is an exciting venture, but it comes with financial, tax, and accounting responsibilities that you must navigate effectively. Understanding what you will need to do from the outset will help make sure that you don’t miss anything, avoid unnecessary costs, and position your new business for success. 

#Startup #NewBusiness #BusinessStructure #SmallBusiness

The UK labour market remains challenging as employers cut staff numbers and wage growth accelerated, according to the latest data from the Office for National Statistics (ONS). 

The International Monetary Fund (IMF) has upgraded its growth forecast for the UK economy this year. 

The global institution upgraded its prediction for UK growth to 1.6% for this year from its previous estimate of 1.5%. 

As well as upgrading its outlook for the UK, the IMF suggested the UK economy would perform better than European economies such as Germany, France and Italy over the next two years. 

The Chancellor will deliver her Spring Statement / Budget to the House of Commons on Wednesday 26 March 2025.

People selling unwanted items online can continue to do so without any new tax obligations, HMRC has confirmed. 

The reminder comes as online platforms start sharing sales data with HMRC from January 2025 – a new process that, when announced last year, generated inaccurate claims that a new tax was being introduced. 

HMRC is warning of scam attempts targeting self-assessment taxpayers in the run up to the 31 January deadline. 
#HMRC #ScamWarnings #Self-Assessement

HMRC to Reduce Late Payment Interest Rates

Due to the recent drop in the Bank of England’s base rate from 5.0% to 4.75% on 7 November 2024, HMRC will adjust interest rates on late payments and overpayments.

Nearly half of UK adults have not written a will, nor are they currently in the process of doing so, according to research published by life insurer Canada Life. 

HMRC has warned landlords to disclose their earnings on self assessment tax returns. 

The tax authority has clarified the guidance on who can participate in the Let Property Campaign, which is targeted at landlords who owe tax through letting out residential property in the UK or abroad. 

The Autumn Budget delivered by Chancellor Rachel Reeves, marks Labour’s return to fiscal policy-making after more than a decade.  Here’s a detailed look at the major changes introduced, particularly impacting individuals and businesses.

#AutumnBudget #UKBudget #Budget2024 #CorporateTax #SmallBusiness Support #TaxPolicy

With less than a month until the 31 October deadline for filing a 2023/24 paper self assessment tax return, HMRC have confirmed they will accept copies of the tax return form that have been downloaded and printed from GOV.UK

Businesses have been banned from withholding tips or service charges from their staff under new rules that came into force on 1 October 2024.

All tips, whether in cash or by card, must now be shared between workers by law in Britain

Here is another reminder of the National Insurance Contributions Deadline

The government previously extended the deadline to pay voluntary National Insurance Contributions (NICs) to 5 April 2025. This gives individuals more time to fill gaps in their National Insurance record and potentially boost their State Pension.

#NICs #TaxUpdate #StatePension

Ellis Atkins will be relocating to a new office on 1 November 2024. Please update your records to reflect our new address:

Constable Court
62 Dene Street
Dorking
RH4 2DP