The tax gap for 2024/25 sets another record at £59.2 billion, with small businesses accounting for some 62% of the taxes not collected. The tax gap is the difference between the amount of tax that should, in theory, be paid to HMRC, and what is actually paid. Upward trend The tax gap for 2024/25 represents […]
Owners of public houses have faced significantly higher bills for business rates from April 2026. To partly offset the increases, the government announced a 15% discount for the current year and has recently announced a 20% discount for 2027/28. The higher business rates costs have been generated as a result of a business rates revaluation […]
New data from HMRC shows how much the government relies on just four taxes. Source: HMRC The Labour Party went into the 2024 general election with pledges on four major taxes in its manifesto: “Labour will not increase taxes on working people, which is why we will not increase National Insurance, the basic, higher, or […]
The Chancellor has announced a 10p per mile increase for the tax-free mileage rates, which can be paid to employees using their own cars for business purposes, with the increase backdated to 6 April 2026. Mileage rates The 10p per mile increase only applies to the first 10,000 business miles driven each tax year. This […]
Making Tax Digital is now live, but with nearly 80% of those required still unregistered at the start of April, sole traders and landlords face a scramble before the first quarterly deadline.
April brought a trio of unwelcome changes for businesses: reduced capital allowances, doubled late filing penalties and the closure of HMRC’s free corporation tax filing portal.
In less than six months, Making Tax Digital (MTD) will become mandatory for sole traders and landlords with an annual income of more than £50,000. However, some may be able to avoid the requirements. HMRC has opened applications for an exemption from MTD for income tax for those who consider themselves to be digitally excluded. […]
HMRC’s newly launched online service means that taxpayers can pay a high income child benefit charge (HICBC) in real time. It should reduce the number of individuals who have to register for self assessment only for HICBC. The charge The HICBC only applies when an individual – or their partner – receives child benefit and […]
The UK tax system is undergoing a major transformation, and it is closer than you might think. From April 2026, Making Tax Digital (MTD) will become mandatory for many individuals with self-employment or property income. If you are not yet prepared, now it is the perfect time to start. Here’s everything you need to know […]
Companies that may have miscalculated their corporation tax marginal relief may receive a letter from HMRC as part of a new campaign. The targeted errors could be due to ignoring associated companies. Associated companies Directors will be aware that the first £50,000 of their company’s profit benefits from a corporation tax rate of 19%, compared […]