HM Revenue and Customs has issued a reminder to be careful about scam attempts that target people filing Self Assessment tax returns.
In the last year, nearly 150,000 scam attempts were referred to HMRC, a 16.7% increase on last year. With the January 31st 2025 filing deadline approaching, fraudsters are likely to step up their activities.
HMRC reports that around half of all scam reports in the last year were fake tax rebate claims. Fraudsters are usually aiming to get hold of personal information and banking details.
If you receive an email, text or phone call from someone claiming to be from HMRC that asks you for personal information or offers you a tax rebate, there is a useful checklist here that can help you identify a scam.
It is helpful to know that HMRC will never leave voicemails threatening legal action or arrest. Neither will they ask for personal or financial information over text message.
HMRC also will not contact you by email, text, or phone to announce a refund or ask you to request one.
If you have been contacted by someone claiming to be from HMRC and feel unsure whether it is a scam, or you would like to check whether you are due a tax refund, call us at any time and we would be happy to help you.
Volunteers from Barter Durgan delivered pizzas to the main children’s ward at Queen Alexandra Hospital in Portsmouth.
Barter Durgan teamed up with charity Sophie’s Legacy which organises for pizzas to be delivered to patients and relatives on children’s wards at hospitals including in Portsmouth, Chichester, Isle of Wight, Poole NICU and Royal Marsden Hospitals.
Under the banner of “Sophie’s Saturday Night Suppers”, the pizzas are delivered each week.
Emma Zeqo from Barter Durgan said: “Sophie’s Legacy does really important work in supporting parents when they have a child in hospital. Sophie’s Saturday Night Suppers is part of that and is such a great idea and we were very happy to support it.”
Segensworth-based Sophie’s Legacy https://www.sophieslegacy.co.uk/ was set up in memory of Sophie Fairall. Sophie had just turned nine when she was diagnosed with a rare form of childhood cancer called Rhabdomyosarcoma in September 2020. During her treatment, she endured nine rounds of intense chemotherapy and seven weeks of radiotherapy.
Sophie never managed to get into remission and in June 2021, after only eight weeks on a programme of maintenance chemotherapy, she relapsed. With no treatment options left Sophie passed away aged ten, in September 2021, just one year after her diagnosis.
Sophie’s Legacy seeks to enact the changes that Sophie wanted to happen including: a play specialist in hospital seven days a week, improvement to food for children in hospital, parents to be fed when staying with their child, for health professionals to be trained in childhood cancer and for an increase in funding for research into childhood cancer.
An important ethos of the charity is to support families locally who end up in hospital with their child. The support varies depending on each situation but the following are regularly offered on a referral basis:
- Help with transport costs (fuel vouchers, bus or train passes or taxis)
- Clothes when admitted in an emergency with their child
- Birthday parties in hospital for children and parents
- Emotional support
- End of life wishes for children and their families
- Vouchers for meals at the hospital restaurant or shops such as M&S
- Costa vouchers
- Beauty treatments such as nails, haircut or back massage when a parent needs it – this tends to be for the parents who are in for long stays.
The charity also provides hospital wards with:
- Snack and toiletry boxes in every parent room / kitchen
- Frozen meals from Cook
- Art practitioner at Portsmouth Hospital and in the community for children who spend long periods of time in hospital
- Parent packs which contain essential toiletry items, phone chargers, notepad and pen, snack etc.
- A trolley of food, drink and toiletries seven days a week at QA Hospital for parents on CAU and children’s wards
Following the Bank of England’s decision to reduce the base rate from 5% to 4.75%,
HM Revenue and Customs (HMRC) have announced a reduction in their late
payment interest rates.
HMRC interest rates track the base rate. Late payment interest (payable if you pay
tax late) is set at base rate plus 2.5%. Repayment interest (which HMRC pay you on
refunds or overpayments) is set at base rate minus 1%, with a minimum rate of
0.5%.
Therefore, the late payment interest rate will reduce to 7.25%. Repayment interest
will reduce to 3.75%.
The reductions come into effect from the following dates:
- 18 November 2024 for quarterly instalment payments; and
- 26 November 2024 for non-quarterly instalments payments.
See: https://www.gov.uk/government/news/hmrc-late-payment-interest-rates-to-be-
revised-after-bank-of-england-lowers-base-rate
HM Revenue and Customs (HMRC) have begun reminding taxpayers that time is
ticking for getting self-assessment tax returns filed in time for the 31 January 2025
deadline.
More than 3.5 million tax returns have already been submitted, however HMRC are
anticipating more than 12 million in total needing to be filed by the end of January.
So, HMRC are encouraging people to submit their return as early as possible.
Filing earlier does have some advantages, such as avoiding a last-minute panic, and
knowing how much any tax payment will be in time to be able to budget for it.
If you need to complete a self-assessment tax return this year but haven’t completed
one before, then you will need to register first before you can send your tax return.
The registration process can take a few days, so it is best to start this in good time
before the end of January.
If you would like any help with completing your tax return, please feel free to contact
us at any time and we would be happy to help you.
See: https://www.gov.uk/government/news/on-your-marks-100-days-to-file-self-
assessment
Companies House have rolled out a new penalties regime as part of a broader effort to boost corporate transparency and combat economic crime, following the implementation of the Economic Crime and Corporate Transparency Act 2023.
This could mean tougher consequences in the shape of financial penalties for companies that don’t meet their obligations, including filing their confirmation statements on time.
More serious offences, such as ongoing non-compliance or fraudulent activity, could lead to civil action, director disqualification, or even criminal prosecution. Companies House have said they will work closely with the Insolvency Service and other enforcement partners to investigate and prosecute offences when necessary.
According to Martin Swain, Director of Intelligence and Law Enforcement Liaison at Companies House: “Where our guidance and support are not enough to encourage users to comply with the law or discourage misuse of our registers, we won’t hesitate to use these new powers available to us.”
What happens if you break the rules?
For minor breaches, such as filing documents late, the result may simply be a fine. The amount of the fine increases depending on the seriousness of the offence and how many times it has already happened. Amounts could range from £250 to £2,000.
Companies House is also adopting a holistic approach to enforcement, which means that they will share intelligence with other bodies. For companies, this could mean that non-compliance could trigger a much deeper investigation, potentially leading to more severe consequences than in the past.
How to stay compliant
To avoid penalties, company directors should make sure they are up to date with their filings and other legal obligations. Here are a few steps to consider:
- Ensure all filings are made on time: This includes confirmation statements, accounts, and any other required documents.
- Respond to any warnings from Companies House: Ignoring these can escalate the situation quickly.
- Keep up to date with any changes: Stay informed about legal updates that might affect your responsibilities as a company director.
- Seek help if needed: If you’re unsure about what’s required, don’t hesitate to seek professional advice.
If you have any questions or concerns about the new regime, feel free to reach out. We’re here to help ensure your business remains compliant with these important regulations.
See: https://www.gov.uk/government/publications/companies-house-approach-to-financial-penalties
HM Revenue and Customs (HMRC) is reminding parents to claim their Child Benefit. A claim can be made online and the first payment could be made within a week of claiming.
Why claim child benefit?
Child Benefit is a helpful financial support for families, offering up to £1,331 per year for the first child, and £881 for each additional child. This can make a real difference, especially in the early days of parenthood.
But Child Benefit doesn’t just provide extra money – it also gives you National Insurance (NI) credits. These credits contribute to your State Pension in the future, and so this could be especially important for parents who may be taking time off paid employment to care for their little ones.
As of 1st October, new laws are in place to ensure that workers keep 100% of the tips, gratuities, and service charges they earn. This is a major development for employees in sectors such as hospitality, where tipping plays a significant role in take-home pay, and for employers, who will need to ensure they comply with the new rules.
The Employment (Allocation of Tips) Act, which came into effect last week, aims to create a fairer system for workers and crack down on businesses that previously kept a portion of tips. While many employers already pass on tips to staff, this new legislation will close loopholes so that all tips go directly to workers.
What’s changing for employers?
Under the new law, employers are now legally required to pass all tips, gratuities, and service charges on to their staff without making any deductions. This means that if a customer leaves a tip, whether it’s in cash or through card payments, it must go to the workers.
Businesses that fail to follow these rules could face serious consequences. Workers now have the right to take their employer to an employment tribunal if they believe their tips have been unfairly withheld. This means that employers could be ordered to pay fines or compensation to affected staff members.
To avoid any potential issues, it’s crucial for employers to review their tipping policies and ensure they’re fully compliant with the law. Transparency is key, and businesses should make sure they have a clear and fair system in place for distributing tips.
What does this mean for employees?
The Department for Business and Trade estimates that these changes could boost workers’ wages by a total of £200 million across the country. For many employees, especially those in roles where tips form a significant part of income, this could make a real difference.
A fairer system for everyone
These new rules aim to improve trust between workers, businesses, and customers. When people leave tips for good service, they do so with the expectation that the person who provided the service will receive it. The introduction of this legislation ensures that workers are rewarded fairly for their hard work and dedication.
For businesses, this also helps create a level playing field. Employers who were already passing on tips to their staff won’t be at a disadvantage compared to those who were not. This new framework encourages consistency and transparency across the board.
Have you prepared for the changes?
With the new laws already in effect, employers should already be familiar with the statutory Code of Practice on fair tipping. This code provides detailed guidance on how tips should be fairly distributed among workers. The rules apply across sectors in England, Scotland, and Wales (For Northern Ireland, employment policy is devolved), and employment tribunals will consider this code when handling disputes.
If you’ve not done so already, it’s a good idea to review your tipping policies, train your staff on the new procedures, and ensure that your systems for handling tips comply with the law. The government has also issued some non-statutory guidance to help employers.
Why comply?
Aside from avoiding legal trouble and potential fines, compliance will promote fairness, transparency, and trust in the workplace and also builds a positive reputation with both staff and customers. This can all contribute to a more successful business.
HM Revenue and Customs (HMRC) has recently reminded people to check and make sure they are not missing out on valuable State Pension entitlements due to gaps in their National Insurance (NI) record.
The issue mainly affects parents, particularly women, who claimed Child Benefit before 2000. During that time, Home Responsibilities Protection (HRP) was designed to reduce the number of NI qualifying years needed to receive the full basic State Pension. However, if you didn’t provide your NI number when claiming Child Benefit, your record may not reflect the HRP you were entitled to, potentially lowering the State Pension you will now receive.
Who should check?
If you claimed Child Benefit between 1978 and 2000, it’s worth checking if HRP was properly applied to your NI record, especially if you took time off work to raise a family. Although HMRC is writing to those affected, you don’t need to wait for a letter—you can check your NI record online or through the HMRC app.
If gaps are identified and you successfully claim HRP, your NI record will be corrected, and the Department for Work and Pensions (DWP) will recalculate your State Pension. This could result in higher payments or, in some cases, back payments.
How to check and claim
It takes about 15 minutes to check your record on GOV.UK. If you find any gaps, you can submit a claim online or by post. There’s no need to apply if you already receive the full State Pension or if your missing year is already counted as a qualifying year.
Why this matters
For those nearing, or at, State Pension age, these missing years could make a difference in retirement income. Taking a few minutes to check your records now could help ensure you receive the full pension you’ve earned.
If you need any help, please feel free to give us a call and we would be happy to help you. Don’t miss out on what’s rightfully yours!
See: https://www.gov.uk/government/news/check-youre-not-missing-state-pension-payments
As HMRC intensifies its crackdown on National Minimum Wage (NMW) noncompliance, it’s vital to make sure you don’t fall foul of NMW laws. Compliance can have more complexities to it than many assume, and the risks of getting it wrong are significant.
HMRC is focusing on SMEs
It seems that HMRC are targeting SMEs. For instance, they have recently targeted SMEs in regions including Belfast, Liverpool, East Anglia, Watford, and the North East. They have plans to expand to additional areas over time.
What are the areas of compliance to watch?
Clearly it is important to make sure that you are using the correct rates of NMW pay. However, compliance isn’t just about paying the correct hourly rate. There are a few areas that you need to be aware of to make sure that you comply with the laws.
- What category is the worker? Under NMW laws, workers are categorised in four different ways – salaried, time-based, output-based, or unmeasured. The category a worker belongs to can alter the method for calculating NMW.
- How much time does the worker work? If you have salaried staff, then you need to monitor the excess hours they work. A salaried worker is entitled to receive NMW for the total hours they work over a year, called their ‘calculated year’. Excess hours could include their turning up early, staying late, working through some of their lunch break, logging on outside of their normal office hours, and business travel. Payments to staff may need to be uplifted to avoid falling foul of the regulations.
- Does a non-employee count as a worker for NMW purposes? In some situations, someone who would not be considered an employee under PAYE may count as a worker under the NMW laws. For instance, paying volunteers beyond expenses, or offering non-cash benefits, could inadvertently classify them as workers under NMW rules.
- Could an after-tax deduction bring a worker below NMW? Deductions from wages, such as those made for benefits or savings schemes, can create unintended problems. A recent tribunal case highlighted that a scheme which was well-intentioned still resulted in noncompliance because it reduced pay below the NMW threshold.
- Are your records complete and accurate? In the event of a dispute where an employee says they have provided time records, but you have not kept a record, HMRC will side with the staff and calculate any arrears based on the information provided by the worker.
The consequences of non-compliance
HMRC’s enforcement process includes a three-stage approach, that starts softly and becomes heavier when the business fails to put things right. Continued noncompliance can result in penalties of up to 200% of arrears and public naming and shaming on the government website. Such exposure can damage a business’s reputation, affecting recruitment, supplier relationships, and overall growth.
Proactive steps for compliance
To mitigate risks, you should conduct periodic and thorough reviews to check that you are complying. This includes assessing potential areas of noncompliance, updating your policies, and ensuring that employment contracts are aligned with NMW regulations. Communication with staff and line managers is also critical to ensure that any issues are flagged promptly.
Our payroll team are skilled at applying the NMW rules, so if you have questions on any particular situation, please feel free to contact us and we would be happy to help you.
Companies House has confirmed that its online services will move to the GOV.UK One Login beginning this Autumn.
The GOV.UK One Login is becoming an increasingly important way of accessing government digital services. It means that you only need one account, one username, and one password to access a range of government services.
The Login is already used for a number of government services, including those related to being an apprenticeship provider, finding and applying for grants, and in Wales to manage fishing permits and catch returns.
Ultimately, the GOV.UK One Login will be used to access all GOV.UK services, which eventually would include tax services. Companies House services moving across will be a major step towards this goal.
The find and update company information service will be the first to move across, with the Webfiling service being moved at a later date.
As part of the changes being made by the Economic Crime and Corporate Transparency Act, any person who sets up, runs, or controls a company in the UK will need to verify their identity.
The GOV.UK Login will be used when Companies House implement this requirement so that users can verify their identity directly.
If you need any help with your company secretarial requirements, please just get in touch, our team will be happy to help you!
See: https://www.gov.uk/government/news/companies-house-to-join-govuk-one-login
