The government’s Tax-Free Childcare (TFC) initiative helped 649,935 families to save on their childcare costs during the 2022/23 tax year, HMRC has revealed. Under TFC the tax relief available is 20% of the costs of childcare up to total childcare costs of £10,000 per child per year. The scheme is therefore worth a maximum of £2,000 per child (£4,000 for a disabled child). Parents are able to apply for Tax-Free childcare for children under 12 (up to 17 for children with disabilities). HMRC has reminded eligible families of the financial support available under the TFC scheme. TFC funds can be ..read more

HMRC recently revealed that the number of self-assessment taxpayers filing their tax returns on the first day of the tax year has more than doubled since 2018, with more than 77,500 customers submitting their tax returns for the 2022/23 tax year on 6 April 2023. The deadline to file tax returns for the 2022/23 tax year is 31 January 2024, but what are some of the benefits of getting your tax return submitted early? Planning and budgeting By filing early it means that you will know exactly how much tax you owe before the deadline. It gives you time to budget for your tax bill so you ..read more

The number of self-assessment taxpayers filing their tax return on the first day of the tax year has more than doubled since 2018, HMRC has revealed. More than 77,500 customers submitted their tax return for the 2022/23 tax year on 6 April 2023, compared to almost 37,000 customers on 6 April 2018. The deadline to file tax returns for the 2022/23 tax year is 31 January 2024 and customers have been able to submit theirs since the start of the new tax year. HMRC says that by completing their self-assessment return early, customers avoid the stress of last-minute filing – something which encourage ..read more

HMRC is seeking views on measures designed to simplify and strengthen the Construction Industry Scheme (CIS). A consultation on the issue considers whether it would be appropriate to add VAT to the list of taxes HMRC must consider when undertaking the statutory compliance test for receiving or keeping Gross Payment Status (GPS). The current Construction Industry Scheme legislation does not allow VAT to be taken into account as part of the compliance test, which HMRC says brings a risk that traders who are not fulfilling their VAT obligations nonetheless are being given GPS. HMRC is also seekin ..read more

Following the Covid-19 pandemic, the working world has changed in many ways, from how we work to where we work. Most businesses now offer a more flexible approach with regards to working from home, or what is known as hybrid working – with employees splitting time between home and being on-site. But what about the self-employed? What tax implications does homeworking have for them? UK tax rules differ considerably depending on whether you are self-employed, as a sole trader or partner, or whether you are an employee, even if that is as an employee of your own company. In this blog we take a l ..read more

The Federation of Small Businesses (FSB) has urged energy suppliers to renegotiate fixed contracts for small firms on market-peak tariffs. Research carried out by the FSB revealed that many small businesses are trapped in contracts that mean that their latest bills are at last summer’s peak market rate for energy, despite wholesale prices having fallen since the winter of 2022. 13% of small firms polled fixed their energy contracts during market peak in 2022, the FSB found. It suggested that 93,000 small businesses could be forced to downsize, restructure or even close. The business group has ..read more

Data published by Barclays has suggested that 77% of financial scams carried out in the UK originate on social media. Social media platforms, dating apps and online marketplaces have experienced an influx of criminals carrying out financial scams, with many cases featuring impersonation and purchase fraud. Figures published recently by trade association UK Finance indicated that 56% of the total amount lost as a result of scams was returned to victims during the first half of last year. Experts have suggested that big tech should be held responsible for stopping scams at source and help to res ..read more

Employers are still facing major difficulties in hiring new staff, according to a survey conducted by the (BCC). The latest Quarterly Recruitment Outlook (QRO), a survey of more than 5,000 UK firms, found that 80% of those attempting to recruit have faced challenges. While recruitment difficulties are being experienced across the economy, firms in the hospitality and manufacturing sectors were the most likely to report recruitment difficulties. This is closely followed by the construction and engineering sector and then the professional services, public, education and health sectors. The BCC i ..read more

Research carried out by payment solution provider Caxton has suggested that 47% of UK workers have had a late or incorrect wage paid into their bank account on pay day. 33% of workers polled said that a late or incorrect wage would affect their ability to pay bills, and 32% stated that they wouldn’t be able to pay their mortgage on time. 35% said that they feel more stressed and anxious as a result of being paid late or incorrectly, and 30% believe it would take a toll on their mental health. 23% said they wouldn’t be able to afford food for themselves if they were paid incorrectly or late. Ru ..read more

HMRC has urged all VAT registered businesses to use Making Tax Digital for VAT (MTD for VAT) compatible software to keep VAT records digitally and file VAT returns. From 15 May 2023, businesses that file VAT returns annually will no longer be able to use their VAT online account and instead must use compatible software to file future VAT returns. HMRC said that businesses that fail to do so may have to pay a penalty. If a business is already exempt from filing VAT returns online or if it is subject to an insolvency procedure, it is automatically exempt. Business owners can apply for an exempti ..read more