WHAT'S GOING ON?
Some important information worth knowing...
Government Announcements
NATIONAL LIVING WAGE TO RISE TO £11 AN HOUR
The national living wage (NLW) is set to increase to at least £11 an hour from next April, Chancellor Jeremy Hunt has confirmed.
​
In a Conservative Party Conference speech, Hunt said the move would benefit two million of the lowest-paid workers.
​
Based on the Low Pay Commission's latest forecasts, a full-time worker on the NLW would earn over £1,000 more next year if the wage increases to over £11 an hour.
The NLW, currently set at £10.42 an hour, is the lowest amount workers aged 23 and over can be paid per hour by law. There are lower rates for younger workers.
​
​
​
​
Following successive rises since the NLW's introduction in July 2015, the announcement means a full-time worker on the living wage will be over £9,000 better off than they would have been in 2010.
​
Alongside the living wage announcement, Hunt also said ministers would look again to enforce the requirements to look for work that apply to certain benefits.
​
Hunt said:
​
"Since we introduced the living wage, nearly two million people have been lifted from absolute poverty after housing costs - not by tax credits or benefits, but by removing the barriers to work: boosting salaries, cutting tax, making work pay."
Talk to us about how these changes affect your business.
HMRC HELPLINE WAITING TIMES SET TO INCREASE
HMRC has written to agents to inform them of upcoming changes to the Agent Dedicated Line (ADL).
​
From 2 October 2023, HMRC will remove its current 10-minute call-answering target for the ADL, meaning that agents should expect waiting times to increase.
​
The tax authority will also introduce waiting time information for queuing callers and re-route some PAYE queries.
​
HMRC claims that these measures will help improve the quality of service offered while meeting the challenges it faces in delivering that service.
However, the decision to scrap the waiting time target has been met with criticism, with the Institute of Chartered Accountants in England and Wales (ICAEW) saying this signals a "new low" for HMRC.
​
​
According to the ICAEW, the announcement demonstrates a "continued decline" in HMRC's performance, with little sign of improvement likely in the near future.
​
Michael Izza, chief executive at the ICAEW, said:
​
"Removing the 10-minute service level on the Agent Dedicated Line represents a new low in HMRC's declining performance.
​
"It seems clear that HMRC does not have the tools to manage the tax system effectively and efficiently, so to restore confidence, we want to see a thorough review with a plan to improve services and develop digital capabilities for the future."
​
Contact us today about your tax obligations.
Business and Personal Taxes
12 MILLION SELF-ASSESSMENT CUSTOMERS AT RISK OF SCAMS
Approximately 12 million people are expected to submit a self-assessment tax return for the 2022 to 2023 tax year before the deadline on 31 January 2024, leaving the door open for scammers.
After receiving reports of more than 130,000 tax scams between September 2022 and September 2023 - 58,000 of which were offering fake tax rebates - HMRC is warning customers to be cautious.
Approximately 12 million people are expected to submit a self-assessment tax return for the 2022 to 2023 tax year before the deadline on 31 January 2024, leaving the door open for scammers.
After receiving reports of more than 130,000 tax scams between September 2022 and September 2023 - 58,000 of which were offering fake tax rebates - HMRC is warning customers to be cautious.
Fraudsters are expected to prey on customers by impersonating HMRC through a variety of methods, for example they could offer a fake rebate, inform customers they need to update their tax details or even threaten arrest for tax evasion.
Myrtle Lloyd, HMRC's director general for customer services, said:
"HMRC is reminding customers to be wary of approaches by fraudsters in the run up to the self-assessment deadline. Criminals are great pretenders who try and dupe people by sending emails, phone calls and texts which mimic government messages to make them appear authentic.
"Unexpected contacts like these should set alarm bells ringing, so take your time and check HMRC scams advice on GOV.UK."
HMRC ENCOURAGES COUPLES TO EXPLORE MARRIAGE ALLOWANCE
In a bid to boost financial wellbeing, HMRC has advised married couples and those in civil partnerships to take just 30 seconds of their time to assess their eligibility for marriage allowance.
By utilising HMRC's online marriage allowance calculator, couples can promptly determine if they qualify and potentially enhance their finances by up to £252 annually.
Marriage allowance facilitates tax savings by enabling the lower or non-earning partner to reduce their partner's tax liability. The lower earner can transfer £1,260 of their personal allowance to their spouse or civil partner, potentially reducing tax by up to £252 a year.
Eligible couples can also retroactively claim for the previous four tax years to secure a lump-sum payment exceeding £1,000.
HMRC's deputy chief executive and second permanent secretary, Angela MacDonald, said:
"The marriage allowance calculator helps couples to find out in seconds how much they stand to benefit. Check today and claim right away. It's a quick and easy process that's worth up to £252 a year."
Tools & Tips
