The deadline for submitting paper self-assessment tax returns for the 2023-24 tax year is 31 October 2024. If the return is submitted late, a £100 penalty will be imposed, regardless of whether there is a tax liability or if any owed tax is fully paid by 31 January 2025.

We recommend that taxpayers still using paper returns consider switching to electronic submission, which offers an additional three months (until 31 January 2025) to file their self-assessment tax return.

Taxpayers with certain underpayments in the 2023-24 tax year can elect to have this amount collected via their tax code (in 2025-26), provided they are in employment or in receipt of a UK-based pension. The coding applies to certain debts and the amount of debt that can be coded out ranges from £3,000 to £17,000 based on a graduated scale. The maximum coding out allowance applies to taxpayers with earnings exceeding £90,000.

Daily penalties of £10 per day will also take effect if the tax return is still outstanding three months after the filing date up to a maximum of £900. If the return still remains outstanding further higher penalties will be charged from six months and twelve months late.

You must inform HMRC by 5 October 2024 if you need to complete a tax return for the 2023-24 tax year and have not done so before.

There are late filing penalties which are designed to encourage companies to file their accounts and reports on time. All companies, private and public, large or small, trading or non-trading must send their accounts to Companies House. A penalty is automatically imposed by Companies House if the accounts are late.

The table of penalties for late submission is as follows:

Failure to file confirmation statements or accounts is a criminal offence which could result in the directors being personally fined in the criminal courts. Late penalties which are unpaid will be referred to collection agents and could result in a County Court judgement or a Sheriff Court decree against the company.

It is possible to appeal against a penalty, but it will only be successful if the appellant is able to demonstrate that the circumstances of the late filing were exceptional, for example, a fire destroying records a few days before the filing deadline.

According to Companies House guidance, an appeal is unlikely to be successful if it’s based on the following examples:

• your company is dormant
• you cannot afford to pay
• your accountant was ill
• you relied on your accountant
• these are your first accounts
• you are not familiar with the filing requirements
• your company or its directors have financial difficulties (including bankruptcy)
• your accounts were delayed or lost in the post
• the directors or LLP members live (or were travelling) overseas
• another director or LLP member is responsible for preparing the accounts.

A 1% reduction in the Bank Rate would reduce the UK government's annual interest charges on the national debt, but the exact amount of the reduction depends on the proportion of the debt that is sensitive to changes in short-term interest rates.

According to the Office for Budget Responsibility, a 1% decrease in short-term interest rates would lead to a reduction in debt interest payments of approximately £6.5 billion in the first year. This impact would diminish slightly over time as the immediate effect on short-term debt lessens, and only newly issued debt benefits from the lower rates​.

Compare this saving with the expected £2bn saving by restricting the winter fuel payment to pensioners receiving Pension Credits.

Reducing the Bank Rate by 1% in the UK would have a number of potential consequences aside from the reduction in debt interest charges:

1. Lower Borrowing Costs: For businesses and consumers, loans and mortgages would become cheaper, potentially boosting spending and investment.
2. Weaker Pound: A lower interest rate typically makes a currency less attractive to investors, which could weaken the pound, potentially increasing inflation due to higher import costs.
3. Increased Inflationary Pressure: Cheaper borrowing could stimulate demand, potentially leading to higher inflation, particularly if the economy is near full capacity.
4. Boost to Economic Growth: Lower rates could stimulate economic activity by encouraging borrowing and spending, helping to counteract economic slowdowns.

However, the effectiveness of such a rate cut would depend on the broader economic context, including inflation levels and global economic conditions. But it does beg the question, why is the Bank of England holding back further interest rate cuts when the advantages would seem to outpace the disadvantages?

The UK's new National Wealth Fund (NWF) represents a significant shift in the government's approach to fostering economic growth and addressing climate change. Established by the Labour government, the NWF is designed to catalyse private investment in key industries, particularly those related to green technology and infrastructure.

With an initial injection of £7.3 billion, the NWF will channel funds through existing institutions like the UK Infrastructure Bank and the British Business Bank. These institutions have a proven history of unlocking substantial private capital, and under the NWF, they are expected to mobilize billions more to support emerging sectors such as clean energy, decarbonized heavy industry, and advanced manufacturing​.

The fund aims to address two critical challenges: the need for significant investment in green technologies to meet the UK's net-zero goals and the broader objective of stimulating regional economic growth. By doing so, the government hopes to create thousands of high-quality jobs across the country, reduce economic disparities between regions, and ensure the UK remains competitive on the global stage​.

Critically, the NWF is also seen as a response to the global trend of using public wealth funds to drive economic transformation. By leveraging public funds to attract private investment, the UK hopes to position itself as a leader in the green economy while also generating returns for taxpayers​.

Overall, the NWF is a bold initiative that seeks to reshape the UK economy, ensuring it is both sustainable and inclusive, though its success will depend on the government's ability to effectively engage with private investors and local stakeholders.

Gift Hold-Over Relief is a tax relief that defers the payment of Capital Gains Tax (CGT). It can be claimed when assets, including certain shares, are gifted or sold below their market value to benefit the buyer. This relief allows any gain on the asset to be "held over" until the recipient sells or disposes of it, by reducing the recipient's acquisition cost by the amount of the deferred gain.

The person giving a qualifying asset is not liable for CGT on the gift itself. However, CGT may be due if the asset is sold for less than its market value. Gifts between spouses and civil partners do not usually incur a CGT charge. A claim for the relief must be made jointly with the person to whom the gift was made.

If you are giving away business assets you must:

• be a sole trader or business partner, or have at least 5% of voting rights in a company (known as your 'personal company'); and
• use the assets in your business or personal company.

You can usually get partial relief if you used the assets only partly for your business.

If you are giving away shares, then the shares must be in a company that's either:

• not listed on any recognised stock exchange; or
• your personal company.

The company's main activities must be in trading, for example providing goods or services, rather than non-trading, investment activities.

There is no requirement for employers to pay tax and National Insurance on certain health benefits covered by tax concessions or exemptions. For example, there is no requirement to report employees’ medical or dental treatment or insurance if they are a part of a salary sacrifice arrangement.

In addition, the following health benefits can be provided tax free:

• A maximum of one health-screening assessment and one medical check-up in any year.
• Eye tests required by health and safety legislation for employees who use a computer monitor or other type of screen.
• Glasses or contact lenses required by employees for working on computer monitors or other types of screen.
• Medical treatment for employees working overseas. The employer must have committed in advance to pay for this treatment or must pay the provider directly for the employee’s treatment or insurance.
• Medical treatment or insurance related to injuries or diseases that result from your employee’s work.
• Medical treatment to help an employee return to work. This allows the employer to pay up to £500 in costs for an employee to return to work.
• Any medical or dental treatment or insurance provided that is not exempt must be reported to HMRC. Employers may be required to deduct and pay tax and National Insurance on these amounts.

There are a significant number of reliefs available to businesses that suffer losses. Certain losses that your company has not used in any other way can be carried forwards against profits in future accounting periods. In general, a company can carry trading losses forward to deduct from profits of future accounting periods as long as the trade continues.

However, there are limitations on the total amount of carried-forward losses that can be offset against profits for accounting periods starting from 1 April 2017.

These apply to carried-forward trading losses so that the total:

• amount that can be relieved using carried-forward trading losses that arose before 1 April 2017 is restricted to, broadly, the amount of an allowance up to £5 million, plus 50% of remaining trading profits after deduction of the allowance;
• overall amount that can be relieved using most types of carried-forward losses – including carried-forward trading losses incurred either before or after 1 April 2017 – is restricted to, as set out above, the amount of an allowance up to £5 million, plus 50% of remaining total profits after deduction of the allowance.

Any claim for trading losses forms part of the Company Tax Return. The trading profit or loss for Corporation Tax purposes is worked out by making the usual tax adjustments to the figure of profit or loss shown in the company’s or organisation’s financial accounts.

Pension Credits can provide extra income to those over State Pension age and on a low income. The credits were first introduced back in 2003 to help keep retired people out of poverty.

The Department for Work and Pensions has launched a Pension Credit awareness drive, urging pensioners to check their eligibility for Pension Credit in order to secure this year’s Winter Fuel Payment. This follows the Chancellor’s recent announcement that the Winter Fuel Payment will be means tested in future.

Approximately 1.3 million households in England and Wales are expected to continue receiving Winter Fuel Payments. The government is eager to increase the uptake of Pension Credit to ensure that low-income pensioners who qualify for these payments continue to receive the Winter Fuel Payment. Pensioners must apply by 21 December 2024 in order to make a backdated claim for Pension Credit and be eligible for the Winter Fuel Payment.

Pensioners whose weekly income is below £218.15 for a single person or £332.95 for a couple should check to see if they are eligible. If your income is higher, you might still be eligible for Pension Credit if you have a disability, you care for someone, you have savings or you have housing costs. Not all benefits are counted as income.

Claimants entitled to the Pension Credit could be entitled to a support package worth an average of £3,900 per year. Details of how to make an application for Pension Credit can be found on GOV.UK at https://www.gov.uk/pension-credit/how-to-claim 

The Chancellor of the Exchequer, Rachel Reeves commented that: 

“The dire state of the public finances we inherited from the previous government means we’ve had to make some very difficult decisions.

Our commitment to supporting pensioners remains, which is why we are maintaining the triple lock.

We want pensioners to get the support they are entitled to. That’s why I urge all pensioners to check whether they are eligible for the Pension Credit.”

Employees who are working from home may be eligible to claim a tax deduction on certain work-related bills. If their employer does not cover these expenses or allowances, they can claim tax relief directly from HMRC.

You can claim tax relief if you are required to work from home, such as if your job requires you to live far from your office or if your employer does not have an office. However, tax relief is typically not available if you choose to work from home, even if your employment contract allows it or if your office is occasionally full.

Employees can claim tax relief of £6 per week (or £26 per month for those paid monthly) to cover additional costs of working from home without needing to keep specific records. The amount of tax relief you receive depends on your highest tax rate. For instance, if you pay the 20% basic rate of tax, you will receive £1.20 per week in tax relief (20% of £6). Alternatively, you can claim the exact amount of additional costs incurred, but you must provide evidence to HMRC. HMRC accepts backdated claims for up to four previous tax years.

You may also be eligible to claim tax relief for using your own vehicle, whether it’s a car, van, motorcycle, or bike. Generally, there is no tax relief for regular commuting to and from your usual workplace. However, the rules differ for temporary workplaces, where such expenses are typically allowable, or if you use your own vehicle for other business-related mileage. Additionally, you may be able to claim tax relief on equipment purchased for work, such as a laptop, chair, or mobile phone.

If you are an employee who is working from home, you may be able to claim tax relief for some of your bills that are related to your work. If your expenses or allowances are not paid by your employer, then you can claim tax relief directly from HMRC.

There is an online tool available on GOV.UK that allows taxpayers to check if they need to advise HMRC about additional income they receive. The online tool can be found at https://www.tax.service.gov.uk/guidance/check-non-paye-income/start/how-did-you-receive-additional-income

Additional income could be generated by:

• selling things, for example at car boot sales or auctions, or online;
• doing casual jobs such as gardening, food delivery or babysitting;
• charging other people for using your equipment or tools;
• renting out property or part of your home, including for holidays (for example, through an agency or online); or
• creating content online, for example on social media.

In most cases, these types of income are taxable. However, there are two separate annual £1,000 tax allowances available for property and trading income. If you receive either type of income listed (property or trading income), you can claim a £1,000 allowance for each. The online tool will help determine if this applies to you.

Where each respective allowance covers all the individual’s relevant income (before expenses) the income is tax-free and does not have to be declared. Taxpayers with higher amounts of income will have the choice, when calculating their taxable profits, of deducting the allowance from their receipts, instead of deducting the actual allowable expenses.

Negative equity occurs when the value of an asset, typically a property, falls below the outstanding balance on the loan or mortgage secured against it. In other words, the amount owed on the mortgage is greater than the current market value of the property.

Example:

Imagine you bought a house for £200,000 with a mortgage of £180,000. If the value of the house drops to £150,000, but you still owe £170,000 on the mortgage, you are in negative equity by £20,000 (£170,000 owed – £150,000 value).

Causes of Negative Equity:

1. Falling Property Prices: A decline in the housing market can reduce property values, leading to negative equity for homeowners who bought at higher prices.
2. High Loan-to-Value Ratio (LTV): If a homeowner took out a mortgage with a high LTV ratio, they have less equity in the property. A small decrease in property value can push them into negative equity.
3. Interest-Only Mortgages: Homeowners with interest-only mortgages do not pay off the principal balance, which can lead to negative equity if property values decline.

Implications of Negative Equity:

1. Selling the Property: If you are in negative equity and want to sell the property, the sale proceeds won't cover the outstanding mortgage balance. You would need to find additional funds to repay the lender.
2. Mortgage Difficulties: Refinancing or switching to a new mortgage can be challenging if you're in negative equity because lenders typically require some equity in the property.
3. Limited Mobility: Negative equity can limit your ability to move house, as you may be unable to sell your property without incurring a loss.

Dealing with Negative Equity:

• Overpaying the Mortgage: If possible, making overpayments can help reduce the mortgage balance faster, potentially bringing the mortgage back to positive equity.
• Renegotiating with Lenders: Some lenders may be willing to restructure the mortgage or offer alternative solutions if you are struggling with negative equity.
• Waiting for Market Recovery: If you can afford to stay in the property, waiting for the housing market to recover may eventually restore your equity.

Negative equity is generally considered problematic because it limits financial flexibility and can lead to losses if the property must be sold.

In the UK, certain business sectors are required to register with a regulatory body, such as HM Revenue & Customs (HMRC), for Anti-Money Laundering (AML) purposes. These sectors include:

1. Money Service Businesses (MSBs): This includes currency exchange offices, money transmission services, and cheque cashing businesses. MSBs are required to register with HMRC for AML supervision.
2. Estate Agents and Letting Agents: Estate agents involved in buying, selling, or letting property, especially transactions over a certain value, must register with HMRC. Letting agents also need to register if they facilitate transactions with monthly rents of €10,000 or more.
3. High-Value Dealers: Businesses that accept or make cash payments of €10,000 or more (or the equivalent in any currency) in a single transaction must register with HMRC. This category includes dealers in luxury goods, precious metals, and other high-value items.
4. Accountancy Service Providers (ASPs): This includes accountants, tax advisers, external auditors, and bookkeepers who offer accountancy services. These businesses must register with a relevant supervisory authority, such as HMRC, or a professional body like the Institute of Chartered Accountants.
5. Trust or Company Service Providers (TCSPs): Businesses that provide services related to the formation of companies, acting as company directors or secretaries, providing registered office addresses, or acting as trustees must register with HMRC.
6. Cryptoasset Exchange Providers and Custodian Wallet Providers: Businesses involved in exchanging cryptoassets or providing services for managing and storing cryptoassets (custodian wallets) must register with the Financial Conduct Authority (FCA) for AML purposes.
7. Art Market Participants: Businesses or individuals involved in the buying and selling of works of art, where the value of transactions (individually or cumulatively) amounts to €10,000 or more, must register with HMRC.
8. Bill Payment Service Providers and Telecommunications, Digital, and IT Payment Providers: Businesses that provide bill payment services or enable payments through digital or IT services must also register with HMRC for AML compliance.
9. Auctioneers and Dealers of Art or Antiques: Similar to high-value dealers, businesses in this sector must register if they manage transactions exceeding the €10,000 threshold.

These sectors are considered high-risk for money laundering and terrorist financing, and therefore, are required to register with an appropriate supervisory body to ensure compliance with the UK's AML regulations. Failure to register can lead to significant penalties, including fines and criminal prosecution.