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Over one million parents have now claimed Child Benefit online or via the HMRC app, with 87% of new claims using this speedy service. If you've recently had a baby or a child joins your family, applying online ensures you get support quickly—right when you need it most. HMRC’s Director General for Customer Services, said: "Having a baby is a busy and expensive time but claiming Child Benefit online or via the app means you’ll get cash in your bank account as soon as possible. Claim now and you could get your first payment in time...

Can’t pay your tax bill in full by 31 January 2025? HMRC’s online Time to Pay system lets self-assessment taxpayers spread the cost over monthly instalments. With plans available for tax bills up to £30,000, this flexible option can help you avoid late payment penalties. Those eligible for the self-serve option can arrange payments online without needing to contact an HMRC adviser. HMRC has revealed that more than 15,000 taxpayers have already set up a Time to Pay payment plan for the 2023-24 tax year. To qualify for the online Time to Pay...

Navigating tax obligations can be daunting for small business owners and sole traders. To make life easier, HMRC has introduced new interactive tools, including a Sole Trader Setup Guide and VAT Registration Estimator, helping businesses understand taxes step by step. The new resources include: Sole Trader Setup Guide: A step-by-step guide to help people who are self-employed understand when they need to register as a sole trader and how to do it. The interactive tool explains what records need to be kept, which taxes may apply, and includes...

Reclaiming VAT on company cars isn’t as simple as it sounds. Generally, businesses can’t recover VAT unless the car is used exclusively for business purposes. But there are exceptions—like taxis, driving schools, and commercial vehicles. Here’s what you need to know. There are complex VAT rules that determine how much VAT can be reclaimed when buying a new car. Generally, businesses cannot recover the VAT paid on a car purchase. An exception occurs when the car is used exclusively for business purposes. This has been clarified through...

For companies selling shares, the Substantial Shareholdings Exemption (SSE) can mean significant tax relief. Introduced in 2002 and simplified in 2017, this exemption allows qualifying gains on share disposals to go untaxed—provided key conditions are met. The SSE regime provides that a gain on a disposal by a company of shares (or an interest in shares, or certain assets related to shares) will not normally be a chargeable gain. This is provided the following two conditions are met for disposals on or after 1 April 2017. The...

Navigating VAT in the construction industry can feel like untangling scaffolding. Enter the VAT reverse charge—special rules that mean sub-contractors no longer charge VAT on services but contractors handle the tax instead. Here's how it works and who it affects. There are special VAT reverse charge rules that can apply to certain construction businesses. When these rules apply, the supply of most construction services between construction or building businesses is subject to the domestic reverse charge. The reverse charge only applies...

The UK government has announced significant reforms to enhance compensation for customers affected by water service failures. Under new regulations, water companies will be mandated to increase compensation payments for issues such as supply interruptions, sewer flooding, and low water pressure. These changes mark the first substantial update to compensation rates since 2000. For instance, compensation for internal sewer flooding will rise from £1,000 to £2,000 or more, and payments for low water pressure will increase from £25 to £250....

Intellectual property (IP) refers to creations of the mind, such as inventions, literary works, designs, brand names, and artistic outputs. Whether you are a business owner, inventor, writer, or entrepreneur, protecting your intellectual property is essential for several compelling reasons. Encourages Innovation and Creativity Protecting IP incentivises individuals and businesses to invest in creating something new. Without IP protection, others could freely copy or reproduce a creator's hard work without consent, undermining the effort and...

A restaurant in Middlesborough recently challenged a civil penalty notice of £15,000 issued by the Secretary of State for the Home Department under Section 15 of the Immigration Asylum and Nationality Act 2006 (IANA 2006) arguing that their employee was lawfully present in the UK and that they were not given the opportunity to mitigate the penalty. However, the Court emphasised that the 2006 Act's purpose was to discourage illegal employment and that employers are responsible for conducting any necessary checks on employees' right to work,...

Scotland’s 2024 Budget delivers on public priorities with investments in services, poverty reduction, and economic growth. Tax rates stay frozen, but bands shift to protect low incomes. A hopeful step forward for Scotland’s future! Scotland’s Deputy First Minister and Finance Secretary, Shona Robison delivered her second Budget statement to the Scottish parliament on 4 December 2024. The Finance Secretary said the following: ‘I am proud to present a budget that delivers on the priorities of the people of Scotland. Parliament can show that we...