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Insights by Femi

Time To Pay? New VAT Late Payment Penalties

Published: May 9, 2025

It is now more expensive to be late when it comes to making a VAT payment. The slowest payers now face a 250% increase to an annualised rate. In addition, the rate of late payment interest has also increased. Late payment penalties Payment for each VAT return is considered separately, and penalties can be avoided […]

Paying the high income child benefit charge

Published: May 7, 2025

From this summer, employed taxpayers who have to pay the high income child benefit charge (HICBC) will no longer need to complete a self assessment tax return. Instead, they can report the charge using HMRC’s new online service. When the HICBC is payable The HICBC only comes into play when an individual – or their […]

Making Tax Digital expands

Published: April 16, 2025

Self-employed people and landlords with an income between £20,000 and £30,000 will be required to use Making Tax Digital (MTD) from 6 April 2028. This will bring a further 900,000 low-income taxpayers under the MTD regime. HMRC previously stated that those with an income between £20,000 and £30,000 would be mandated before the end of […]

Sick Pay and Small Employers’ Relief

Published: April 10, 2025

Statutory payments can be problematic to administer for smaller employers, but in a rare instance of generosity HMRC compensates for this. Also, from 6 April 2025, the rate of compensation will almost triple from the current 3% to 8.5%. Employers can usually reclaim 92% of statutory payments for maternity, paternity, adoption, shared parental and parental […]

Side hustles and tax obligations

Published: April 10, 2025

HMRC has recently launched their Help for Hustles campaign to help people earning extra income to understand their tax obligations. Online platforms, such as eBay, are now required to report users’ income to HMRC. Anyone who is selling goods or services online therefore needs to be aware of their tax reporting requirements. Many regular activities […]

Making Tax Digital Expands

Published: April 3, 2025

Self-employed people and landlords with an income between £20,000 and £30,000 will be required to use Making Tax Digital (MTD) from 6 April 2028. This will bring a further 900,000 low-income taxpayers under the MTD regime. HMRC previously stated that those with an income between £20,000 and £30,000 would be mandated before the end of […]

Spring Statement: The Magic of £9.9 billion

Published: April 3, 2025

There were no tax increases in the Chancellor’s Spring Statement (upgraded from an initial Spring Forecast), but that might just be pain deferred. Before becoming Chancellor, Rachel Reeves set out a new goal for the public finances, now badged the ‘Stability Rule’. In simple terms, this requires the Government should at least match its day-to-day […]

New tax year planning

Published: March 29, 2025

The start of the new tax year warrants as much planning as the end of the old tax year. While the end of the tax year on 5 April is a major focus of tax planning, it doesn’t end there. The following day may require much less immediate attention, but there is an argument for […]

Another Day, Another Validation Order…………

Published: March 24, 2025

Another successful validation order obtained for our client. Many thanks to Kartikeya Sharma of 23ES for a brilliant job articulating what was a challenging case! Photo by GR Stocks on Unsplash

Late payment interest warning

Published: March 20, 2025

A warning for the 1.1 million taxpayers who missed the 31 January filing deadline. It isn’t just penalties you will be incurring for subsequent late payment, but also late payment interest. A record amount of late payment interest was paid to HMRC during 2024 to a total of £409 million, more than triple what it […]

Heads Up: New Reporting Requirements for Dividend Data

Published: March 14, 2025

Starting with the 2025/26 tax year, directors of close companies (owner-managed companies) will need to separate the dividend income received from their companies. This change will have an impact on almost 900,000 directors. In very broad terms, a close company is a company that is under the control of its directors or five or fewer […]

Overseas workday relief set to improve

Published: March 12, 2025

Employees coming to work in the UK should see an improvement in the new version of overseas workday relief set to be introduced from 6 April 2025. Current system Under the current system of overseas workday relief, earnings for employment duties performed overseas are exempt from UK tax if: The employee is not domiciled in […]

What’s new on MTD?

Published: March 6, 2025

A busy start for HMRC on Making Tax Digital (MTD) for 2025 with focus falling on new guidance for three-line accounts and joint property income. Self-employed individuals and landlords with an annual income of more than £50,000 will start using MTD from 6 April 2026. The £50,000 test is based on overall self-employed and property […]

Property purchasing could get costlier……………

Published: February 26, 2025

Although a late reprieve cannot be completely ruled out, the stamp duty cost of purchasing a property in England and Northern Ireland is set to go up from 1 April 2025. Stamp duty costs have risen now that the temporary £250,000 nil rate threshold has reverted back to £125,000, the pre-23 September 2022 level. First-time […]

What to expect from the Spring Forecast on 26 March

Published: February 19, 2025

The Chancellor has announced the timing of her next formal report to Parliament. Cast your mind back six Chancellors ago to Philip Hammond (aka Spreadsheet Phil). In autumn 2016, Hammond announced a change to the timings of Budget announcements, with a Spring Budget and Autumn Pre-Budget Report (PBR) to be replaced by an Autumn Budget […]

A cautionary tale – no excuse for late tax return

Published: February 12, 2025

In a recent case heard by the First Tier Tribunal (FTT), a taxpayer lived overseas, encountered postal delays and had limited internet access, but these did not constitute reasonable excuses for the late submission of a self-assessment tax return. The case When he was a UK resident, the taxpayer had previously submitted tax returns on […]

Making Tax Digital latest

Published: February 9, 2025

Although Making Tax Digital (MTD) for the self-employed and landlords is still more than a year away, the October 2024 Budget further extended its scope with the announcement that it will apply to those with income between £20,000 and £30,000 before the end of this parliament. MTD timeline With the latest announcement, the MTD timeline […]

Lost pensions worth billions unclaimed

Published: January 31, 2025

Over the past six years, the number of lost pension pots has doubled to around 3.3 million. The total value of missing funds now sits at almost £31 billion. A pension pot is considered to be lost when the pension provider administering the fund is unable to contact the saver who owns the pension pot. […]

Employment rights changes on the horizon

Published: January 27, 2025

The Employment Rights Bill working its way through parliament will have serious implications for employers once finally enacted. Along with the loss of options for offering more flexible working arrangements, the changes are likely to cost businesses several billion pounds a year to implement. Businesses operating in the hospitality sector will take a significant hit […]

Stamp duty hit for landlords

Published: January 24, 2025

UK landlords are facing increased rates of surcharge when purchasing buy-to-let property following increases over the past three months. The rate is now particularly punitive for those buying property in Scotland. Stamp duty was devolved to the Scottish and Welsh Governments in 2015 and 2018 respectively. Rather than stamp duty land tax (SDLT), Scottish property […]

From new year to year end – time to keep a tax-planning resolution?

Published: January 20, 2025

As 2025 gets under way, it is once again the time of year to start considering your tax year-end planning. The early months of the year are the time to undertake year-end tax planning. Unsurprisingly, the traditional drivers have been the tax year-end (Saturday 5 April 2025) and the Spring Budget. On this occasion, after […]

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