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HMRC missed out on £46.8bn in tax last year. Small businesses and Corporation Tax make up the biggest share of the shortfall. The tax gap for the 2023-24 tax year has been published and is estimated to be 5.3% of total theoretical tax liabilities. The tax gap is basically the difference between the amount of tax that should have been paid to HMRC and the amount of tax collected by the Exchequer. The gap includes tax that has been avoided in the UK’s black economy, by criminal activities, through tax avoidance and evasion. However, it also...

Starting work this summer? Download the free HMRC app to get your NI number, check your tax code and stay on the right pay. Young people finishing exams and entering the job market this summer are being urged by HMRC to download the HMRC app. The app is a free tool that can be used to provide quick access to essential employment and tax details. The app has already been downloaded by over 1.2 million people aged 25 and under. The app offers instant access to your National Insurance (NI) number, tax code, pay details and employment...

Get a clear view of your future pension. Use the enhanced online service to check, boost, or track your State Pension entitlement. The enhanced Check Your State Pension forecast service is available online, offering a faster and more complete way to understand your State Pension entitlement. This joint service from HMRC and the Department for Work and Pensions (DWP) lets most people under State Pension age see: How much State Pension they could get. When they can get it. If and how they can increase their State Pension, for example, by...

Struggling with late-paying customers? The VAT Cash Accounting Scheme helps protect cash flow by taxing only what you have received. The VAT Cash Accounting Scheme is designed to support businesses by improving cash flow. Using this scheme means that VAT is only paid when your customer pays you and not when you issue an invoice. This means that if a customer fails to pay, the VAT is not payable to HMRC, offering a clear advantage for businesses that sell on credit. In contrast, under standard VAT accounting, VAT is due whether or not you've...

From April 2024, the cash basis is the default method for sole traders and most partnerships when preparing Self-Assessment returns. Designed to simplify tax reporting, the cash basis lets businesses record income and expenses when money actually moves, easing the admin burden for many. Those who prefer or need traditional accruals accounting must actively opt out when submitting their tax return. Businesses that prefer traditional accruals accounting or who are ineligible for the cash basis, must opt out of the cash basis when submitting...

Buying tools or clothing for your job? You could claim tax relief. Check if you qualify and how to get your money back. If you have spent your own money on items essential for your work, such as tools or specialist clothing, HMRC may allow you to claim tax relief, even up to four years after you paid. There are two ways to make a claim, and it might be simpler than you think. You may be able to claim tax relief on: Cleaning, repairing, or replacing specialist clothing (e.g. uniforms, safety boots). Repairing or replacing small tools needed...

A recent tribunal clarified the procedural powers of the Certification Officer (CO), ruling that applications from trade union members cannot be refused simply because they are deemed "unarguable". After becoming Chair of a prestigious university, the appellant faced three internal complaints from other members/staff of the UCU involving bullying; a complaint regarding his decision not to permit a motion for an AGM at an EGM; and a data protection breach complaint from three managers after he included information about them. All...

The government has announced the reinstatement of Winter Fuel Payments for pensioners in England and Wales for winter 2025-26, reversing the previous year's cuts. Around nine million pensioners are expected to benefit from this decision, with payments of £200 per household or £300 for households where someone is aged 80 or over. Eligibility will be based on age and income. Anyone who has reached State Pension age by the qualifying week of 15 to 21 September 2025 and earns £35,000 or less will receive the payment automatically. Pensioners with...

In a significant update, the UK government has unveiled a new compensation scheme targeting individuals affected by the earlier “Capture” software, used in over 2,000 Post Office branches during the 1990s. This programme aims to redress those who suffered financial losses prior to the widely known Horizon IT scandal. Background on Capture Before Horizon, the Post Office operated the Capture system during the mid-1990s. This legacy software generated accounting records that later allegations suggest were sometimes erroneous,...

You could earn up to £18,570 in tax-free savings interest in 2025-26, thanks to the personal allowance, starting rate for savings, and the Personal Savings Allowance. If your taxable income for the 2025-26 tax year is less than £17,570, you will not pay tax on the interest you receive. This figure combines the £5,000 starting rate for savings (taxed at 0%) with the £12,570 personal allowance. In addition, the Personal Savings Allowance (PSA) provides further tax-free savings interest: basic-rate taxpayers can earn up to £1,000 in interest...