Tag: Treasury

The press release issued by HM Treasury on 31 January 2024.

Millions of UK workers see boost in take home pay today as cut to National Insurance shows in January’s payslip as part of plan to reward work and boost growth.

• Progress made on economy means government is able to cut taxes for hard working people
• Saving worth £450 for an average worker earning £35,400 a year

Millions of workers are going to start seeing a boost to their take home pay today as January’s pay comes into bank accounts across the UK.

With millions of monthly earners getting paid today (Wednesday 31 January 2024), a household with two average earners will be starting to see a nearly £1,000 a year benefit from the Chancellor’s record personal tax cut.

Thanks to the progress made against its economic priorities, the government announced it will cut National Insurance by 2p from 12% to 10% at the Autumn Statement and made sure it took effect within weeks of the announcement, as part of its plan to reward work and grow the economy. The change is a more than 15% reduction in National Insurance, saving £450 this year for the average salaried worker on £35,400.

Millions of people working different jobs across hundreds of industries will now be better off. To a pub landlord that’s £418 a year, a bus driver £328, a nurse £527. A teacher will pay £635 less in National Insurance contributions this year.

Today’s historic NICs cut takes effect with the government having faced the legacy of Covid-19, and global instability with war in Ukraine and the Middle East.

In the past year, inflation has halved; the economy has recovered more quickly from the pandemic than first thought; and debt is on track to fall. The government is sticking to the plan and is building a stronger economy where hard work is rewarded and ambition and aspiration are celebrated.

Chancellor of the Exchequer Jeremy Hunt said:

“I never shied away from making the tough decisions needed yesterday to cut taxes today.

“This January pay boost for hard-working Brits is part of our plan to grow the economy and build a brighter future where hard work is always rewarded, relieving pressure on UK workers by putting around £450 back in their pockets.”

The cut means that for those on average salaries, personal taxes would be lower in the UK for single parents with no children than every other G7 country, based on the most recent OECD data. The UK also has the most generous starting allowances for income tax and social security contributions in the G7.

To mark the tax cut, earlier this month HMRC launched an online tool to help people understand how much they could save in National Insurance this year.

The tool uses salary information to give employees personalised estimates of how much they could save because of the government’s changes, and is hosted on the government’s cost of living support website on gov.uk.

The last major cut to the current personal tax system of today’s magnitude was when the National Insurance personal allowance increased from £9,880 to £12,570. This was the largest ever cut to a personal tax starting threshold, allowing working people to hold on to an extra £2,690 free from tax whilst last year taking around 2.2 million people out of paying tax altogether.

The cut to National Insurance combined with above-inflation increases to tax thresholds since 2010 means that the average earner will pay over £1,000 less in personal taxes than they otherwise would have done.

The independent Office for Budget Responsibility (OBR) says that, by 2028-29 this tax cut will increase the number of people in employment by 28,000 alongside a substantial economic benefit from those in work increasing their hours which the OBR forecast will be equivalent to 79,000 on a full-time equivalent basis. Overall, the OBR says that by 2028-29 this measure will increase the number of hours worked by new and existing employees by 0.3%, or 94,000 in full-time equivalent terms.

At the Autumn Statement the Chancellor Jeremy Hunt announced the biggest package of tax cuts to be implemented since the 1980s. In addition to today’s action, he announced a National Insurance cut for 2 million self-employed people, which will take effect on 6 April 2024 and is worth £350 for the average self-employed person on £28,200. He also made full expensing permanent, which at £11 billion per year is the biggest business tax cut in modern British history helping businesses invest for less. Over 200 business leaders told the government that it would have the single most transformational impact on business investment and growth.

The OBR says these two measures will increase the number of people in work and grow the economy.

He also announced the biggest ever increase to the National Living Wage, froze alcohol duty for six months and extended cuts to business rates relief for the high street.

Further information

Today’s tax cut combined with above-inflation increases to tax thresholds since 2010 means that the average earner will pay over £1,000 less in personal taxes than they otherwise would have done – this is based on the mean earnings for all employees from ASHE 2023. The income tax and employee NICs liability is compared to a hypothetical counterfactual where tax rates are kept unchanged and thresholds are uprated in line with inflation every year.

• Use HMRC’s new online tool to estimate yearly national insurance savings thanks to the 2p cut
• Visit the government’s cost of living support website
• National Insurance factsheet
• Latest OECD tax on wages data

The press release issued by HM Treasury on 25 January 2024.

The Bank of England (the Bank) and HM Treasury have today published their response to the consultation on a digital pound that was launched in February 2023.

• Bank of England and HM Treasury update on proposals for a digital pound which would include primary legislation to guarantee users’ privacy and control.
• Response confirms that neither the Bank nor the government would have access to users’ personal data.
• Authorities committed to maintaining access to cash for those who prefer it.
• Continuing work on digital currency will strengthen the UK’s position as a competitive global leader in finance.

The Bank of England (the Bank) and HM Treasury have today (25 January) published their response to the consultation on a digital pound that was launched in February 2023.

No final decision has been made to pursue a digital pound – also called a central bank digital currency (CBDC).

Work will continue during the design phase exploring its feasibility and potential design choices. This will look at how a digital pound could be used in the UK economy, providing greater choice, convenience and innovation for households and businesses making and accepting everyday payments. As part of broader work on payments innovation, the work will also help strengthen the UK’s position as a competitive global leader in finance.

The feedback from respondents from a range of industries and organisations was largely supportive of the proposed design set out in the 2023 Consultation Paper, while other respondents raised concerns about the implications of a digital pound for access to cash, users’ privacy, and control of their money.

To address these concerns, today’s publication confirms that, if a digital pound were to be implemented, primary legislation would be introduced, and this would guarantee users’ privacy and control. The Bank and the government would not have access to any personal data and users would have freedom in how they spent their digital pounds. There would also be a further public consultation on a digital pound prior to the introduction of primary legislation. These commitments would give both Parliament and the public further opportunities to have their say.

In addition, today’s publication reiterates the commitment of both the government and the Bank to protect access to cash, even if a digital pound were introduced.

Economic Secretary to the Treasury, Bim Afolami, said:

“We are at an exciting time of innovation in money and payments, and we want to ensure the UK is ready should a decision to build a digital pound be taken in the future. This is the latest stage in our national conversation on the future of our money – and it is far from the last.

“We will always ensure people’s privacy is paramount in any design, and any rollout would be alongside, not instead of, traditional cash.“

Deputy Governor for Financial Stability, Sarah Breeden, said:

“Trust in all forms of money is an absolute necessity. We know the decision on whether or not to introduce a digital pound in the UK will be a major one for the future of money. It is essential that we build that trust and have the support of the public and businesses who would be using it if introduced.”

Following the design phase, the Bank and the government will decide whether or not to build a digital pound, and, if proceeding, would set out a timetable for further consultation on legislation and a potential launch.

What would a digital pound look like?

• A digital pound would complement the role of cash in a digital world and give people more choice in how they make everyday payments.
• £10 of a digital pound would always be worth the same as £10 in banknotes or coins.
• It would be issued by the Bank of England, widely available and convenient to use.
• It would be easily exchangeable with other forms of money, including cash and bank deposits.
• It would be accessed through digital wallets offered to the public and businesses by the private sector through smartphones or smartcards.
• It would be intended for payments made online, in-store, and between individuals, rather than for savings, and it would not pay interest.
• There would be restrictions, at least initially, on how much an individual or business could hold.
• Like banknotes, it would be a claim on the Bank of England, have intrinsic value and be stable, unlike unbacked cryptoassets.

The press release issued by HM Treasury on 18 January 2024.

Jeremy Hunt champions British science and tech in first visit to the World Economic Forum’s Annual Meeting in Davos, Switzerland from a UK Chancellor since 2019

The press release issued by HM Treasury on 11 January 2024.

The three external members have been reappointed by the Economic Secretary to the Treasury.

John Taylor, Antony Jenkins, and Tanya Castell have been reappointed by the government as external members of the Prudential Regulation Committee (PRC).

John Taylor will serve a further three-year term, from 14 January 2024 to 13 January 2027. Antony Jenkins will also serve a further three-year term, from 5 April 2024 to 4 April 2027. Tanya Castell will serve a further three-year term from 1 September 2024 to 31 August 2027.

The Economic Secretary to the Treasury, Bim Afolami, said:

“I am pleased to reappoint John Taylor, Antony Jenkins, and Tanya Castell to the Prudential Regulation Committee. They have all made important contributions during their initial terms on the Committee and their reappointments will ensure the PRC continues to benefit from their industry experience and expertise.”

Further information

John Taylor currently serves as a non-executive director on the boards of the International Centre for Mathematical Sciences, the Royal Conservatoire of Scotland and the Medical, Dental Defence Union of Scotland and a member of Scottish Taskforce for Green and Sustainable Financial Services. He is a former chair of the Scottish Financial Risk Academy and a former president of the Institute and Faculty of Actuaries.

Antony Jenkins is the founder, chair and CEO of 10x Future Technologies Group, a company that aims to redefine how banks operate and engage with customers. He is chair of Redpin, the first non-bank foreign exchange payments specialists in the UK and member of the Advisory Board of Palamon Capital Partners. Previously, Antony held board leadership positions at Barclays Plc (2009 – 2015) including chief executive officer from 2012-2015.

Tanya Castell is an independent non-executive director on the Board of Border to Coast Pensions Partnership, which is an asset management company set up to pool the assets of the 11 local authority pension funds that own it. Tanya is also a member of the Financial Conduct Authority’s Regulatory Decisions Committee, a trustee on the board of the Royal National Institute for Blind where she chairs the Audit, Risk and Assurance Committee and the founder (and former CEO) of the charity Changing the Chemistry. Its aim is to improve diversity of thought on boards.

About the Prudential Regulation Committee

The Prudential Regulation Authority (PRA) supervises banks, insurers and major investment firms.

The PRA’s most important decisions are taken by the Prudential Regulation Committee, chaired by the Governor of the Bank of England. Five members are Bank staff, including the governor and four deputy governors. The Prudential Regulation Committee has a majority of external members, including the chief executive of the Financial Conduct Authority and six others selected for their experience and expertise in financial services.

The press release issued by HM Treasury on 6 January 2024.

27 million people across the UK will benefit from a yearly tax cut worth hundreds of pounds from today, meaning a household with two average earners will save nearly £1,000 per year.

• 27 million people to get tax cut from today as the main rate of employee National Insurance will be cut by two percentage points, from 12% to 10%.
• Change in gear for government, cutting taxes for hard working people so they have more money in their pocket.
• Online tool launched to help workers estimate their savings.

The main rate of National Insurance has been cut by 2p from 12% to 10% today (Saturday 6 January 2024). This reduces National Insurance by more than 15%, saving £450 this year for the average salaried worker on £35,400.

Millions of people working different jobs across hundreds of industries will now be better off. An average full-time nurse will save £520, a typical junior doctor £750 and an average teacher £630.

In the past year, inflation has halved; the economy has recovered more quickly from the pandemic than first thought; and debt is on track to fall. With a renewed focus on the long-term decisions to strengthen the economy, the government is changing gear and cutting taxes for hard working people, giving them the opportunity to build a wealthier, more secure life for themselves and their families.

Prime Minister Rishi Sunak said:

“We have made tough decisions on the economy, supporting people through global shocks such as the pandemic and Putin’s illegal invasion of Ukraine. It is because of the tough decisions this government has taken that today we are able to cut taxes for 27 million people across the UK.

“Today’s tax cuts will directly reward hard working people, putting £450 back in the pocket of the average worker and helping them make ends meet.”

Chancellor of the Exchequer Jeremy Hunt said:

“With inflation halved, we’ve turned a corner and are cutting taxes – starting with today’s record cut to National Insurance worth nearly £1,000 for a household.

“From nurses and brickies, to cleaners and butchers, 27 million hard-working Brits will have a little more cash in their pockets.”

The cut means that for those on average salaries, personal taxes would be lower in the UK than every other G7 country, based on the most recent OECD data. The UK also has the most generous starting allowances for income tax and social security contributions in the G7.

To mark the tax cut, HMRC have launched an online tool to help people understand how much they could save in National Insurance this year.

The tool will use salary information to give employees personalised estimates of how much they could save because of the government’s changes, and will be hosted on the government’s cost of living support website on GOV.UK.

The last major cut to the current personal tax system of today’s magnitude was when the National Insurance personal allowance increased from £9,880 to £12,570 in July 2022. This was the largest ever cut to a personal tax starting threshold, allowing working people to hold on to an extra £2,690 free from tax whilst taking 2.2 million people out of paying tax altogether.

Today’s tax cut combined with above-inflation increases to tax thresholds since 2010 means that the average earner will pay over £1,000 less in personal taxes than they otherwise would have done.

At the Autumn Statement the Chancellor Jeremy Hunt announced the biggest package of tax cuts to be implemented since the 1980s. In addition to today’s action, the Chancellor also announced a National Insurance cut for 2 million self-employed people, which will take effect on 6 April 2024 and is worth £350 for the average self-employed person on £28,200. He also announced the biggest ever increase to the National Living Wage, effectively cut corporation tax by more than £55 billion as he made full expensing permanent to help businesses invest for less, froze alcohol duty for six months and extended cuts to business rates relief for the high street.

Today’s historic National Insurance cut takes effect following the government stepping in to support households during the Covid-19 pandemic and throughout Putin’s barbaric war in Ukraine. The government took the decision to manage the public finances responsibly by not saddling future generations to help pay down debt.

Further information

• Use HMRC’s new online tool. It will be online at 05:00 on Saturday 6 January 2024.
• Visit the government’s cost of living support website
• National Insurance factsheet
• Latest OECD tax on wages data
• Visit the Treasury’s Flickr to view photos from the Chancellor’s visit to Openreach, Crawley to mark the NICs cut
• Today’s NICs cut has reduced the 32% combined tax rate for employees (income tax + national insurance) paying the basic rate of tax to 30% – the lowest since the 1980s.
• From April 2024, a full time National Living Wage worker’s take home pay will be 30% greater in real terms than it was in 2010, due to successive increases in the National Living Wage and changes to personal tax rates and thresholds.
• The OBR say that, by 2028-29 this tax cut will increase the number of people in employment by 28,000 alongside a substantial economic benefit from those in work increasing their hours which the OBR forecast will be equivalent to 79,000 on a full-time equivalent basis. Overall, the OBR say that by 2028-29 this measure will increase the number of hours worked by new and existing employees by 0.3%, or 94,000 in full-time equivalent terms. This shows the government is making work pay.

Who does this help?

• A senior nurse with 5 years of experience on £42,618 will receive an annual gain of £600.
• An average full-time nurse on £38,900 will receive an annual gain of over £520.
• An average police officer on £44,300 will receive an annual gain of over £630.
• A typical junior doctor on £63,000 will receive an annual gain of over £750.
• A cleaner working night shifts on £21,000 will receive a gain of £170.
• A typical self-employed plumber on £34,400 will receive an annual gain of £410.
• An average teacher on £44,300 will receive an annual gain of over £630
• A hard-working family with 2 earners on the average earnings of £35,404 will be £900 better off.

The press release issued by HM Treasury on 2 January 2024.

Self Assessment customers have less than one month to file their tax returns.

With less than a month to go to the Self Assessment deadline, HM Revenue and Customs (HMRC) is urging nearly 5.7 million customers to file their tax return for the 2022 to 2023 tax year.

HMRC data shows almost 6.5 million customers have already beaten the Self Assessment clock by filing their tax return including 49,317 customers who used the New Year holiday to get a head start on their tax obligations:

• 25,593 customers filed their tax return on New Years Eve, with the most popular time being between 12:00 and 12:59, when 2,677 customers filed
• 127 customers saw in the New Year by filing their tax return between 00:00 and 00:59 on 1 January
• 23,724 customers filed on New Year’s Day, with the most filing between 15:00 and 15:59, when 2,354 customers filed

The deadline to file a tax return for the 2022 to 2023 tax year and pay any tax owed is 31 January 2024. Customers can submit their tax returns and pay any tax owed online at GOV.UK.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said:

The clock is ticking for those customers yet to file their tax return. Don’t put it off, kick start the new year by sorting your Self Assessment. Go to GOV.UK and search ‘Self Assessment’ to get started start today.

HMRC has a wide range of resources online including a series of video tutorials on YouTube, help and support on GOV.UK, to support customers in completing their tax return.

The quickest and easiest way customers can pay their tax bill is via HMRC’s app which is free and secure. Information about the different ways to pay can be found on GOV.UK.

Customers who are unable to pay in full can access support and advice on GOV.UK. HMRC may be able to help by arranging an affordable payment plan, known as Time to Pay for those who owe less than £30,000. Customers can arrange this themselves online. Go to GOV.UK and search “HMRC payment plan” for more information.

HMRC will consider a customer’s reasons for not being able to meet the deadline. Those who provide HMRC with a reasonable excuse may avoid a penalty. The penalties for late tax returns are:

• an initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time
• after 3 months, additional daily penalties of £10 per day, up to a maximum of £900
• after 6 months, a further penalty of 5% of the tax due or £300, whichever is greater
• after 12 months, another 5% or £300 charge, whichever is greater

There are also additional penalties for paying late of 5% of the tax unpaid at 30 days, 6 months and 12 months. Interest will also be charged on any tax paid late.

Customers need to be aware of the risk of falling victim to scams and should never share their HMRC login details with anyone, including a tax agent, if they have one. HMRC scams advice is available on GOV.UK.

The press release issued by HM Treasury on 1 January 2024.

British film, TV and video game producers will benefit from new, more generous tax credits that start today (1 January 2024).

• New and improved tax credit system for film, TV and video game production companies starts from today (1 January 2024)
• An extra £42,500 in relief for children’s TV, animated TV and animated film production
• £5,000 in relief for high-end TV, film or video game production

To maximise the potential of the UK’s cutting-edge production industry and help incubate unique British talent, the government’s Audio-Visual Expenditure Credit and the Video Games Expenditure Credit replace the previous tax reliefs for film, TV and video games.

All companies will receive more tax relief than they did under the previous system, greater flexibility over production decisions and greater clarity about the amount of credit companies can expect to receive.

Nigel Huddleston, Financial Secretary to the Treasury, said:

We are backing the makers of the next Barbie, Happy Valley and Grand Theft Auto with this new, more generous, tax credit system for British production talent.

The UK is a world leader in creativity, and we want to ensure that continues well into the future by making it easier for British film, TV and video games to thrive.

Under the new system, a children’s TV production, animated TV production or film with £1 million of qualifying expenditure will receive an additional £42,500 in relief. A high-end TV production, film production or video game will receive £5,000 in relief. To ensure fairness, the uplift in relief for animation will be extended to include animated films as well as TV programmes.

The credits will be calculated directly from a production or game’s qualifying expenditure, instead of being an adjustment to the company’s taxable profit.

Animation and children’s TV productions will be eligible for a higher credit rate of 39%, a rate increase of 4.25% under the previous reliefs. The 34% credit rate for film, high end TV and video games is roughly equivalent to a rate increase of 0.5% under the previous tax reliefs.

The new system applies to the whole of the UK. The government has listened to feedback from industry that companies will need sufficient time to adapt to the new expenditure credits. For this reason, productions and games in development on 1 April 2025 may continue to use the previous tax reliefs until they end on until 1 April 2027.

The move to reform tax relief for entertainment productions and video games was announced at the Spring Budget in March 2023. The system implemented today was developed hand in glove with the UK entertainment industry, with consultations on both the policy itself and the draft legislation. It is being legislated as part of the Finance Bill 2023-24.

The UK’s creative industry is already worth £126bn and the UK has the largest video game employee base in Europe, at nearly 21,000 by the last estimate.

Today’s new tax credit system is the latest move by UK Government in support for British creative industries. The Chancellor also announced that full-expensing will be made permanent in 2023’s Autumn Statement, helping creative businesses invest for the less by saving them 25p in every £1 they spend on qualifying equipment and machinery.

At Spring Budget 2023, the Chancellor also extended the rates of relief for theatre, orchestra and museums for two additional years to April 2025.

In September last year, coinciding with a visit by the Chancellor Jeremy Hunt to Warner Bros. Studios in Los Angeles, it was announced that the production giant would expand their studio in Leavesden, Hertfordshire, in 2024. The move is expected to create 4,000 new jobs in the UK and contribute more than £200m to the UK economy.

Further information

• Qualifying expenditure will remain broadly unchanged. For the Video Games Expenditure Credit, to align the conditions for video games with film and TV, at least 10% of expenditure has to be ‘used or consumed’ in the UK.
• At Spring Budget 2023, the Chancellor also extended the higher 45% (for non-touring productions) and 50% (for touring productions) rates of relief for theatre, orchestra and museums for two additional years to April 2025.

The press release issued by HM Treasury on 1 January 2024.

Women will save up to £2 on a £12 pair of period pants as the government scraps VAT on the underwear.

• Women to save up to £2 on period pants worth £12 as government scraps VAT today.
• Retailers, including M&S, Primark and Tesco, have committed to pass on the savings, worth 16%.
• Move follows scrapping of tampon tax in 2021, removing VAT from sanitary products, following the UK’s decision to leave the EU.

From today, 1 January 2024, women will save up to £2 on a £12 pair of period pants – up to 16% – as the government scraps VAT on the underwear.

The pledge to scrap the tax was made by the Chancellor Jeremy Hunt at the Autumn Statement 2023 and follows the end of the tampon tax in January 2021.

Around 80 MPs, charities and retailers called on the government to scrap the VAT in August 2023.

With Marks & Spencer spearheading the campaign, other retailers including Primark and Tesco have committed to pass the tax cut straight to the consumer.

Financial Secretary to the Treasury, Nigel Huddleston, said:

This is a victory for women across the UK and for the campaigners who’ve helped raise awareness of the growing importance of period pants.

It’s only right that women and girls can find more affordable options for what has become an essential and environmentally friendly product.

Since reforming the ‘tampon tax’, the market for period underwear has expanded and they are now a mainstream choice for many women. The scrapping of the current VAT will ensure that period underwear is treated the same as traditional period products.

Having left the European Union, the UK is no longer legally bound by EU laws which saw sanitary products subject to five different rates of VAT between 1973 and 2021.

The move comes after the ‘Say Pants to the Tax’ campaign, led by retailers such as Marks & Spencer, women’s groups and environmentalists, called to scrap the tax.

Victoria McKenzie-Gould, Corporate Affairs Director at Marks & Spencer, said:

Paying tax on period pants was a bum deal for women everywhere so we’re thrilled that the Treasury has done the right thing by axing the tax and levelling the playing field on period products for good.

Nearly 25% of women cite cost as a barrier to using period pants so we know the new legislation that comes into effect from today will make a big difference to women’s budgets across the UK.

A big thank you to WUKA, the tens of thousands of individuals, politicians, brand and retailers, who threw their weight behind our campaign – Say Pants to the Tax – and of course a big thank you to the Chancellor and HM Treasury team who made the change we were campaigning for a reality.

Women with sensory issues who find conventional period products difficult to use will also benefit from period pants becoming more affordable.

The savings for women are subject to the VAT cut being passed on, with the army of retailers behind the campaign pledging themselves to play their part to pass on the 20% VAT cut.

Laura Coryton, tampon tax campaigner and founder of social enterprise Sex Ed Matters, said:

Ending the tax on period underwear will make a huge difference, particularly given skyrocketing levels of period poverty across the UK. It will also help to tackle the stigma associated with periods, which stops at least 10% of girls going to school every month.

Now, it is important for retailers to pass savings on to consumers, not only in relation to period underwear, but all period products.

Further information

• Women’s Sanitary Products have been subject to five different tax rates since 1973. The UK first introduced VAT in 1973 with a standard rate of 10% applied to sanitary products. In 1974, standard VAT was cut to 8%, before rising to 15% in 1979 and 17.5% in 1991. The government moved sanitary products to a reduced rate of 5% in January 2001 following a campaign and debates in Parliament.
• Read the 50 retailers’ letter to the Financial Secretary to the Treasury from August 2023.

The press release issued by HM Treasury on 27 December 2023.

Thousands of customers filed their Self Assessment tax return on Christmas Day.

There were 4,757 customers who filed their Self Assessment tax return on Christmas Day, HM Revenue and Customs (HMRC) has revealed.

A day traditionally dominated by eating, drinking, and exchanging gifts saw a perhaps surprising number of customers also find time to go online and complete the essential job of filing their tax return for the 2022 to 2023 tax year, ahead of the 31 January 2024 deadline.

Over the three-day festive period, 25,769 customers submitted their tax return, an increase compared to the same period last year, with 8,876 filing on Christmas Eve and 12,136 on Boxing Day. The peak time was between 12:00 and 12:59 on Boxing Day, when 1,121 returns were received by HMRC.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said:

Our Christmas Day filers proved that there is no time like the present to get started on Self Assessment, and with our online tool it can be a simple task that’s easy to fit around other festive commitments. There’s no need to delay, getting it done ahead of the 31 January deadline means less stress and longer to work out payment options. Get started today by searching ‘Self Assessment’ on GOV.UK.

Customers can submit their tax return online, but they do not have to pay until 31 January 2024. However, those who file before 30 December may have the option of paying any tax owed through their PAYE tax code.

HMRC has a wide range of resources online including a series of video tutorials on YouTube, help and support on GOV.UK, to support customers in completing their tax return.

They can pay through the free and secure HMRC app. For a full list of ways to pay any tax owed, visit GOV.UK.

If customers cannot pay in full by the deadline, they may be able to set up a Time to Pay arrangement online if the amount owed is less than £30,000. There is a new affordability assessment for customers to enter their income and spending to calculate disposable income and set up an affordable payment plan.

Customers need to be aware of the risk of falling victim to scams and should never share their HMRC login details with anyone – even a tax agent, if they have one. HMRC scams advice is available on GOV.UK.

Further information

More information about Self Assessment.

The breakdown of figures for those who opted to file during the festive period are:

• Christmas Eve: 8,876 tax returns were filed – the peak time for filing was between 12:00 and 12:59, when 850 returns were received
• Christmas Day: 4,757 tax returns were filed – the peak time for filing was between 12:00 and 12:59, when 402 returns were received
• Boxing Day: 12,136 tax returns were filed – the peak time for filing was between 12:00 and 12:59, when 1,121 returns were received

During December and January, the HMRC helpline is supporting customers who have queries about Self Assessment payments, refunds and who need help completing their tax return.  For all other queries go online where you’ll find guidance, videos and tools that will help you. Go to GOV.UK and search ‘Self Assessment’.

HMRC has lots of information and support available online which includes:

• HMRC’s digital assistant – the assistant will help you find information, and if you can’t find what you’re looking for you can ask to speak to an adviser. You can also access the digital assistant via the HMRC app
• guidance notes and help sheets and YouTube videos provide a wealth of information if you’re stuck or confused
• live webinars where you can ask questions or if you can’t join, you can watch recorded webinars on demand
• technical support for HMRC online services for help signing into online services
• email updates – sign up to HMRC email updates so you don’t miss out on the latest information on Self Assessment
• social media updates – follow HMRC X (formerly Twitter) @HMRCcustomers to get the latest updates on Self Assessment services and useful reminders
• if you need extra support to help your with Self Assessment you can contact a voluntary or community sector organisation who can provide you with help and advice, or you can get support directly from HMRC

The small minority of customers who require extra support or struggle to engage with us digitally can still speak to an adviser.

Customers are reminded to include their bank account details on their tax return so they can get any repayment due quickly and securely.

It is important that customers let HMRC know of any changes to their circumstances. Customers can use the HMRC app to update their details including a new address or name. Customers also need to let us know if they’ve stopped being self-employed or need to change their business details. This can be done online at GOV.UK.

The press release issued by HM Treasury on 27 December 2023.

The Chancellor Jeremy Hunt has commissioned the Office for Budget Responsibility to prepare an economic and fiscal forecast to be presented to Parliament alongside his Spring Budget on 6 March 2024.