Newsletter - January 2025
Posted on 10th January 2025
This new year's update includes our new website and logo, some useful (and timely) information on HMRC's online Time to Pay option if you need to spread the cost of your tax bill due 31 January. If you've recently had a baby, did you know you can claim any child benefit online? Find out more about this popular and efficient service in our second article below. Clarify the difference between casual and trading online sellers and the tax implications of both - there have been no recent changes but it's good to know where you stand if you trade online. HMRC is issuing its annual warning of online scams, particularly as we are enter the busy tax return period.
We finish our newsletter this month with some reminders of financial deadlines that take us up to mid-February 2025.
We wish you a great year ahead.
New Website and Logo
We’re thrilled to announce the launch of our new website! The site is live and offers a fresh, modern look that reflects our commitment to providing exceptional services. While it’s already functional, we’ll continue to refine and update it in the coming weeks to ensure it’s as user-friendly and informative as possible. Alongside this, we’ve unveiled our brand-new logo, symbolizing the evolution of Bidwell Accountancy and our focus on growth and innovation.
We’d love for you to check out our new site and share your thoughts. Your feedback helps us keep improving!
Spreading tax payments by using Time to Pay
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 option, taxpayers must meet these conditions:
No outstanding tax returns
No other tax debts
No existing HMRC payment plans
For taxpayers who do not meet these requirements or owe more than £30,000, other payment arrangements may be available. These are typically agreed on a case-by-case basis, tailored to individual circumstances and liabilities, allowing businesses and individuals to pay off their debt over time.
HMRC's Director General for Customer Services, said:
We're here to help customers get their tax right and if you are worried about how to pay your self-assessment bill, help and support is available. Customers can set up their online payment plan to suit their own financial circumstances and can spread those payments across a maximum of 12 months. It is a valuable option for someone needing extra flexibility in meeting their tax obligations.
Claiming Child Benefits online
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 for your baby's first Christmas. Download the HMRC app today."
You can apply for Child Benefit starting the day after you register your child's birth or when a child comes to live with you. Claims can be backdated up to 12 weeks. Applying online is usually the fastest way to complete your claim.
If you are unable to claim online, you can complete the Child Benefit form CH2 and send it to the Child Benefit Office. The address can be found on the form. If you are claiming for more than two children, you will need to complete the additional child form CH2(CS) and send it with your CH2 form. Alternatively, you can contact HMRC by phone if online or postal methods are not suitable.
Child Benefit is typically available for children who move to the UK. However, there are certain requirements that must be met to claim. If a child receiving Child Benefit moves permanently abroad, HMRC must be notified as soon as possible.
The child benefit rates for the only or eldest child in a family is currently £25.60 a week and the weekly rate for all other children is £16.95. The rates are set to increase to £26.05 and £17.25 respectively from April 2025..
No tax changes for online sellers
Selling online? From 2024, digital platforms must report your information to HMRC if sales exceed £1,700 or 30 goods a year. Casual sellers are exempt, but regular traders may need to register for Self-Assessment.
New rules, which became effective from 1 January 2024, require digital platform operators in the UK to collect and verify information about sellers on their platforms. The first reports due under these new rules must be submitted by 31 January 2025. HMRC has released a press release to make it clear that the tax rules for sellers have not changed despite rumours to the contrary.
These new rules mean that if you are using online platforms to sell goods or services, any pertinent information collected about you between 1 January 2024 to 31 December 2024 will be reported to HMRC by 31 January 2025. The information will only be shared with HMRC if you sell 30 or more goods or earn approximately £1,700 (equivalent to €2,000) or more in a calendar year. The online sellers are also required to give you a copy of the reported information. This can help if you have to make tax returns.
HMRC's Second Permanent Secretary and Deputy Chief Executive Officer, said:
We cannot be clearer - if you are not trading and just occasionally sell unwanted items online - there is no tax due. As has always been the case, some people who are trading through websites or selling services online may need to be paying tax and registering for self-assessment.
You may need to register for self-assessment and pay tax if you:
buy goods for resale or make goods with the intention of selling them for a profit;
offer a service through a digital platform - such as being a delivery driver or letting out a holiday home through a website;
AND generate a total income from trading or providing services online of more than £1,000 before deducting expenses in any tax year.
Self-assessment scam warning
Scammers are on the rise as the Self-Assessment deadline nears! HMRC warns that HMRC never emails or texts about tax refunds. Stay alert, report suspicious contacts, and protect your money from fraudsters.
Fraudsters are increasingly targeting taxpayers with scam emails as the deadline for submitting self-assessment returns for the 2023-24 tax year approaches. Between November 2023 and October 2024, HMRC received over 144,000 reports of suspicious contact, nearly 72,000 of which involved fake tax rebate claims. There has been a significant rise in scam emails compared to the previous year.
These scams often claim that taxpayers are entitled to a rebate or refund from HMRC and request bank or credit card details to process the non-existent refund. Fraudsters use various methods, including phone calls, text messages, and emails, and may even threaten victims with arrest or imprisonment if a fabricated tax bill is not paid immediately.
HMRC works to identify and shut down scams but continues to urge taxpayers to be vigilant and avoid falling victim. Remember, HMRC only contacts individuals due a refund by post-never via email, phone, text, or third-party companies. Legitimate organizations like HMRC and banks will never ask for your PIN, password, or bank details.
If you receive a suspicious email claiming to be from HMRC, forward it to phishing@hmrc.gov.uk. For suspicious texts, text 60599, and for fraudulent calls, report them via GOV.UK. If you have lost money, contact Action Fraud at 0300 123 2040 or report online. In Scotland, contact the Police on 101.
HMRC's Chief Security Officer at HMRC, said:
'With millions of people filing their Self-Assessment return before January's deadline, we're warning everyone to be wary of emails promising tax refunds.
Being vigilant helps you spot potential scams. And reporting anything suspicious helps us stop criminal activity and to protect you and others who could have received similar bogus communication.
Our advice remains unchanged. Don't rush into anything, take your time and check 'HMRC scams advice' on GOV.UK.'
Tax Diary January/February 2025.
1 January 2025 - Due date for Corporation Tax due for the year ended 31 March 2024
19 January 2025 - PAYE and NIC deductions due for month ended 5 January 2025. (If you pay your tax electronically the due date is 22 January 2025).
19 January 2025 - Filing deadline for the CIS300 monthly return for the month ended 5 January 2025.
19 January 2025 - CIS tax deducted for the month ended 5 January 2025 is payable by today.
31 January 2025 - Last day to file 2023-24 self-assessment tax returns online.
31 January 2025 - Balance of self-assessment tax owing for 2023-24 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 2024-25.
1 February 2025 - Due date for Corporation Tax payable for the year ended 30 April 2024.
19 February 2025 - PAYE and NIC deductions due for month ended 5 February 2025. (If you pay your tax electronically the due date is 22 February 2025)
19 February 2025 - Filing deadline for the CIS300 monthly return for the month ended 5 February 2025.
19 February 2025 - CIS tax deducted for the month ended 5 February 2025 is payable by today.
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