HMRC’s self-assessment (SA) helpline will focus on priority queries from 11 December until 31 January. Whilst the helpline is focusing on priority calls in the run-up to the filing deadline, other enquiries will be directed to HMRC’s online digital services, including online guidance, digital assistant and webchat. 

This move has been in place over the busy period running up to the self-assessment deadline on 31 January 2024. HMRC says that the helpline advisers will focus on answering priority self-assessment queries that cannot be easily dealt with online. In addition, the helpline will aim to support the small minority of taxpayers who require extra support or cannot engage with HMRC digitally.    

HMRC has reported that the vast majority of self-assessment taxpayers use HMRC’s online services, with 97% filing online. Examples of queries that can be resolved much quicker online include updating personal information, chasing the progress of a SA registration, ending SA registration, and checking a Unique Taxpayer Reference number. 

Please call if you have any self-assessment queries that require assistance but cannot be resolved using HMRC's helplines.

There are two ways to consider the effects or benefits of business and personal expenditure.

The payment of rates or utility costs are an essential part of our daily expenditure, but it would be difficult to view them as an investment.

Whereas the cost of building a new online sales platform for your business may open up the prospect to win additional sales for your business or additional income for your family finances. But the costs of the build are a real expense.

Any costs that you undertake that will have a direct impact on improving your financial situation should be considered an investment rather than an expense.

Having made this distinction, it makes sense, when you are considering cost cutting or planning your finances, to protect investment costs and see if you can reduce those costs that are not going to have a direct, positive influence in 2024.

In certain cases, the two distinctions may rub shoulders with each other. For example, investing in solar technology, while not impacting your ability to earn more, may help you reduce your ongoing electricity costs.

If we are to recover from the economic challenges of the past few years, we must address a more considered reclassification of our planned outgoings.

Be wary of reducing investment expenditure.

Other aspects of your expenditure that will also need consideration in this exercise could include:

• Will an investment in a new piece of plant really have a positive impact on your sales or could the expenditure be deferred until trading conditions improve?
• Do you really need to change your car? It may get you from A to B more comfortably, but it will likely use financial resources that may be more profitably employed in improving productivity and sales/income.

Trimming costs or expenditure that will have little impact on your future financial prospects makes sense.

Trimming “investment” costs that could have a positive impact makes less sense.

We recommend that your take this distinction into your planning for 2024. And if you need help creating plans, pick up the phone. We can help.

As Christmas arrives the week before the calendar year-end, many of us will enjoy a week’s shut down and have time to relax and enjoy the break with our family and friends.

The break also gives us time to consider our plans, personal and business, for the coming year.

Readers of this post who have not seriously considered their finances would be well advised to dust off their laptops and evaluate their “what-if” choices for 2024.

• If your present income exceeds your outgoings will that enviable state of affairs continue?
• How will you be affected by continuing upward pressure on prices?
• Is it time to consider creating new income streams?
• If your planned outgoings exceed your planned income, how will you fund the shortfall? From savings, by drifting into debt?
• And don’t forget to include debt repayment in your cashflow forecasts.

We have all experienced tough economic challenges as the effects of the banking crisis, Brexit, COVID and the war in Ukraine have impacted our daily lives. High inflation, high interest rates and a depressed economy are a direct result, and it is not clear if 2024 will see a significant reversal in these trends.

And so, if you get the time, give a little serious thought to your prospects for 2024 over the coming holiday. The scouting maxim, be prepared, comes to mind. Plan for the worst, hope for the best.

1 January 2024 – Due date for Corporation Tax due for the year ended 31 March 2023.

19 January 2024 – PAYE and NIC deductions due for month ended 5 January 2024. (If you pay your tax electronically the due date is 22 January 2024).

19 January 2024 – Filing deadline for the CIS300 monthly return for the month ended 5 January 2024. 

19 January 2024 – CIS tax deducted for the month ended 5 January 2024 is payable by today.

31 January 2024 – Last day to file 2022-23 self-assessment tax returns online.

31 January 2024 – Balance of self-assessment tax owing for 2022-23 due to be settled on or before today unless you have elected to extend this deadline by formal agreement with HMRC. Also due is any first payment on account for 2023-24.

1 February 2024 – Due date for Corporation Tax payable for the year ended 30 April 2023.

19 February 2024 – PAYE and NIC deductions due for month ended 5 February 2024. (If you pay your tax electronically the due date is 22 February 2024)

19 February 2024 – Filing deadline for the CIS300 monthly return for the month ended 5 February 2024. 

19 February 2024 – CIS tax deducted for the month ended 5 February 2024 is payable by today.
 

The annual exempt amount applicable to Capital Gains Tax (CGT) is to be halved from April 2024. This means that the exempt amount will be reduced from £6,000 currently, to £3,000 from April 2024. The exempt amount was as high as £12,300 2022-23.

Any taxpayers with small gains should consider the benefits of crystalising these gains before 6 April 2024 to fully use the £6,000 allowance for 2023-24. Married couples and civil partners both qualify for the £6,000 allowance, in which case organising joint ownership of these assets before disposal may be beneficial if each individual partner is not fully using their annual allowance. 

Transfers between spouses and civil partners are exempt from CGT. Making use of the full allowance can, in some circumstances, effectively double the CGT exemption before the end of the current tax year, to £12,000.

CGT for individuals is normally charged at 10% or 20%. If taxpayers pay basic rate tax and make a small capital gain, they may only be subject to a reduced rate of 10%. Once the total of taxable income and gains exceed the higher rate threshold, the excess will be subject to 20% CGT. 

A higher rate of CGT applies to gains on the disposal of residential property (apart from a principal private residence). The rates are 18% for basic rate taxpayers and 28% for higher rate taxpayers.

A reminder that the main rate of Class 1 Employee National Insurance contributions (NIC) will be reduced from 6 January 2024. This change will see Class 1 NICs reduced by 2% from 12% to 10% in a change set to benefit some 27 million employees.

This reduction will only apply to annual earnings between £12,570 and £50,270, meaning that the maximum saving is £754 a year. The average worker bringing home £35,400 will be £450 better off. As the Class 1 NIC rate will be reduced from 6 January 2024, employees will see a benefit before the start of the next tax year. Usually, such changes would only take effect from the start of the new tax year.

The policy paper released by HM Treasury on these changes also highlighted further examples of the savings this will create. We have listed these examples below.

• 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.

When a new employee is added to the payroll it is the employer's responsibility to ensure they meet the employee's rights and deduct the correct amount of tax from their salary.

HMRC’s guidance lists the following requirements that an employer must meet for employees on full-time and part-time contracts:

• a written statement of employment or contract;
• the statutory minimum level of paid holiday;
• a payslip showing all deductions, such as National Insurance contributions (NICs);
• the statutory minimum length of rest breaks;
• Statutory Sick Pay (SSP); and
• maternity, paternity and adoption pay and leave.

Employers must also:

• make sure employees do not work longer than the maximum allowed;
• pay employees at least the minimum wage;
• have employer’s liability insurance;
• provide a safe and secure working environment;
• register with HM Revenue and Customs to deal with payroll, tax and NICs;
• consider flexible working requests;
• avoid discrimination in the workplace; and
• make reasonable adjustments to their business premises if an employee is disabled.

The rent-a-room scheme is a set of special rules designed to help homeowners who rent-a-room in their home. If you are using this scheme, you should ensure that rents received from lodgers during the current tax year do no exceed £7,500. The tax exemption is automatic if you earn less than £7,500 and there are no specific tax reporting requirements. If required, homeowners can opt out of the scheme and record property income and expenses as usual.

To qualify for this relief, homeowners must be resident in the house whilst rooms are sub-let.

The relief applies only to the letting of furnished accommodation and can be used when a bedroom is rented out to a lodger by homeowners in their home. The relief also simplifies the tax and administrative burden for those with rent-a-room income up to £7,500. The limit is reduced by half if the income from letting accommodation in the same property is shared by a joint owner of the property.

The rent-a-room limit includes any amounts received for meals, goods and services provided, such as cleaning or laundry. If gross receipts are more than the limit, taxpayers can choose between paying tax on the actual profit (gross rents minus actual expenses and capital allowances) or the gross receipts (and any balancing charges) minus the allowance – with no deduction for expenses or capital allowances.

There are special rules for the provision of living accommodation for employees. In most cases, employees will pay tax on any living accommodation provided by an employer unless they qualify for an exception.

However, where an employee qualifies for an exemption, there is no tax to pay on the provision of living accommodation. The definition of living accommodation includes houses, flats, houseboats, holiday homes and apartments. It does not include hotel rooms or board and lodgings.

An exception for living accommodation will usually apply in the following cases:

• If it is domestic or personal
  • Accommodation is exempt if both:
    • you are an employer who is an individual, for example a sole trader; and
    • you are providing it for someone because they are a close relative – even if they happen to work in your business.
• If it is provided by a local council
  • Accommodation is exempt if a local council provides it on the same terms that it provides housing to non-employees.
• If it is necessary or usually provided for the job
• If it is needed for security

Other charges and costs

If the accommodation you provide is exempt, you do not have to report Council Tax, water and sewerage charges to HMRC, or pay National Insurance and tax.

If you are having trouble paying your tax on time you may be eligible to receive support from HMRC by applying for an instalment payment plan. An online payment plan for self-assessment tax bills can be used to set up arrangements for paying tax liabilities of up to £30,000.

The large majority of taxpayers, who are due to make payments on 31 January 2024, could qualify to implement a Time to Pay arrangement online.

Taxpayers that want to use the online option must have filed their latest tax return within 60 days of the payment deadline and intend to pay their debt within the following 12 months or less. Taxpayers that qualify for a Time to Pay arrangement using the self-serve Time to Pay facility online, can do so without speaking to an HMRC adviser.

Taxpayers with self-assessment tax payments that do not meet the above requirements need to contact HMRC to formally request a Time To Pay arrangement. These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities.

HMRC will only offer taxpayers the option of extra time to pay if they think they genuinely cannot pay in full but will be able to pay in the future. If HMRC do not think that more time will help, they can require immediate payment of a tax bill and start enforcement action if no payment is forthcoming.

If you are concerned that an organisation is holding personal information you have a legal right to ask for a copy of the information that they hold about you.

If it is a public organisation, write to their Data Protection Officer (DPO). Their details should be on the organisation’s privacy notice.

If the organisation has no DPO, or you do not know who to write to, address your letter to the company secretary.

How long it should take

The organisation must give you a copy of the data they hold about you as soon as possible, and within one month at most.

In certain circumstances, for example particularly complex or multiple requests, the organisation can take a further two months to provide data. In this case, they must tell you:

• within one month of your request; and
• why there’s a delay.

When information can be withheld

There are some situations when organisations are allowed to withhold information, for example if the information is about:

• the prevention, detection or investigation of a crime;
• national security or the armed forces;
• the assessment or collection of tax; or
• judicial or ministerial appointments.

An organisation does not have to say why they are withholding information.

How much it costs

Requests for information are usually free. However, organisations can charge an administrative cost in some circumstances, for example if:

• you are asking for a large amount of information; or
• your request will take a lot of time and effort to process.

Homes and businesses will be able to install rooftop solar panels more easily, under new rules that were recently announced.

Changes to permitted development rights rules will mean more homeowners and businesses will be able to install solar panels on their roofs without going through the planning system. 

Currently those who have to go through the planning system are having to wait over eight weeks and face extra costs.  

The move will encourage more people to install solar panels on their properties, slashing their energy bills in the process and cutting down on harmful emissions.

Energy Security and Net Zero Minister Graham Stuart MP said:

“… we are cutting through red tape to make it easier for businesses to install solar panels on their rooftops.

Removing the 1MW restriction for industrial rooftop solar will help us meet our target of 70GW of solar power by 2035 while supporting hundreds of long-term skilled British jobs, bolstering our world-leading renewables sector and reducing bills for consumers with panels.”

The changes will mean homes with flat roofs will be able to install panels without planning permission, bringing rules in line with those for businesses. 

Current rules that require businesses to apply for planning permission if solar panels will generate more than one megawatt of electricity will also be scrapped, meaning organisations will be able to install more solar panels on rooftops without the delay and cost of applying for planning permission.

The Government is clear that where possible already developed land should be used for solar panels, which is why the changes will make it easier for panels to be installed in canopies above car parks, if they are over ten meters away from people’s homes.  

These measures also support ambitions set out in the British Energy Security Strategy published by government last year – taking the necessary steps to combat climate change and bring greenhouse gas emissions to net zero by 2050.