Latest news with #HMRevenueandCustoms
Daily Record
15 hours ago
- Business
- Daily Record
New HMRC service announced for workers to take control of their tax
HMRC has also set out more than 50 measures to transform the UK's tax and customs system. Income tax rises for Scots in April - how the changes affect you Workers are set to take control of their tax affairs after the UK Government announced a new online Pay As You Earn (PAYE) service for around 35 million UK taxpayers as HM Revenue and Customs (HMRC) sets out more than 50 measures to transform the UK's tax and customs system. The new online service for all PAYE taxpayers will make it simpler and easier to check and update their income, allowances, reliefs and expenses, and will be available via their Personal Tax Account on or on the official HMRC app. This service forms part of HMRC's Transformation Roadmap, which launched earlier this week. It sets out ambitious plans to become a digital first organisation by 2030, with 90 per cent of customer interactions taking place digitally. The roadmap sets out more than 50 IT projects, services and measures that, once delivered, will transform the UK's tax and customs systems, simplifying processes and making it easier to pay the tax that funds public services and deliver the UK Government's Plan for Change. The plans to modernise the tax and customs system, introduce new AI technologies and work with third parties and intermediaries will make it easier for taxpayers, businesses and intermediaries to interact with HMRC. The digital first approach will see HMRC automating tax wherever possible and offering new digital self-serve options across a number of tax regimes. Alongside the new PAYE service, HMRC will save £50 million a year - the equivalent of almost 1,500 full time nurses - by moving customer letters and reminders to a digital first approach, reducing the reliance on paper correspondence, by the 2028 to 2029 tax year. Paper post provision will remain for critical correspondence and for the digitally excluded. HMRC said increasing the use and investment in AI will enable customers to meet their tax obligations and allow the tax body to monitor the system in near real time. HMRC plans to introduce AI in work areas HMRC advisers and caseworkers: using AI capability to automate call summaries and the use of internal GenAI Chat Assistants to support them in their work. Digital assistants: developing new AI-powered features to help customers easily navigate HMRC services and improve the ability to update HMRC's content and guidance on Compliance: delivering an automatic document identifier system for HMRC caseworkers to identify fraudulent documents during compliance activities by using a biometric likeness-liveness check. HMRC said it will work with developers to create a set of principles which will set out HMRC's expectations of how third parties use AI in software where it interacts with the department and the tax administration system. These principles will give developers the confidence to introduce AI functionality into their products in the UK and minimise the risk of those products introducing error or non-compliance. James Murray MP, Exchequer Secretary to the Treasury, said: 'We are going further and faster to make HMRC fit for the 21st century, including delivering a simpler and easier system for all PAYE workers. 'By 2030, taxpayers can expect a modern and innovative HMRC with cutting-edge AI, industry-leading customer service practices, and a laser focus on delivering taxpayer value for money by ensuring everyone pays their fair share.' Mr Murray's key priorities for the department are: improve day-to-day performance and the customer experience reform and modernise the tax and customs system close the tax gap As announced at the Spending Review 2025, £1.7 billion will be provided to HMRC over four years to fund an additional 5,500 compliance and 2,400 debt management staff. HMRC said this will ensure more of the tax owed is paid, to fund public services. HMRC is focusing on tackling wealthy offshore tax non-compliance, with an additional 400 people set to work on wealthy offshore tax risks. This includes experts in private sector wealth management, who will help find and tackle non-compliance more effectively and train HMRC compliance staff. JP Marks, HMRC's Chief Executive and First Permanent Secretary, said: 'The Government's ambition is for a simpler tax and customs system and this roadmap sets out how HMRC will deliver a first-class experience that feels different to their customers. 'By 2030, UK citizens will experience a tax administration system that is more automated, more focused on self-service, and better set up to get things right first time so they can fulfil their tax obligations.' The Transformation Roadmap sets out timescales for delivery and HMRC is committed to reporting on progress. Work is underway to deliver some of the measures set out in the roadmap this tax year, including: extending the rollout of the SMS confirmation service to Self Assessment appeals, complaint cases and some PAYE services. improving Self Assessment registration service and streamlining the exit process for those customers who no longer need to file a Self Assessment tax return. expanding the rollout of the voice biometrics pilot to make customer verification easier when calling HMRC's helplines. a new service to give employed parents, who are newly liable for the High Income Child Benefit Charge, the choice to pay it directly through their tax code without needing to register for Self Assessment. launching an enhanced reward scheme for informants, targeting information on serious non‑compliance in large corporates, wealthy individuals, offshore and avoidance schemes. The new scheme will reward informants with compensation linked to a percentage of any tax taken. Further measures and projects to be delivered as part of the roadmap include: digitalising the Inheritance Tax service to provide a modern, easy-to-use system, that makes submitting returns and paying tax simpler and quicker. launching a new service to allow agents to digitally submit information which may impact their client's tax code. delivering a Digital Disclosure Service to allow customers and intermediaries to correct mistakes, pay liabilities and penalties for all taxes and duties. introducing an electronic trade documentation pilot to see how it could improve customs operations. progressing the Verifiable Credentials pilot with US Customs and Border Protection to test the use of new internationally interoperable digital credentials and identity standards. HMRC wants to incentivise taxpayers to pay their tax on time by simplifying and strengthening penalties. In the 2023 to 2024 tax year, HMRC collected 94.7 per cent of the total tax due. Those who meet their obligations and pay their tax on time should not be disadvantaged by the minority who don't follow the rules. HMRC will update on modernising behavioural penalties later this year.
Daily Mirror
6 days ago
- Business
- Daily Mirror
People warned to check if they owe tax as deadline for next payment looms
The deadline for paying the second instalment of tax for the 2024/25 financial year is fast approaching on July 31, but many people may be unaware they need to do so People are being prompted to check whether they owe any tax for the 2024/25 financial year as a crucial payment deadline approaches. Advice Direct Scotland has sounded the alarm, reminding workers that they must clear their tax dues by midnight on Thursday, July 31, to dodge potential penalties from HM Revenue and Customs (HMRC). Individuals who are registered for self-assessment for the 2024/25 tax year might have already made an initial payment to HMRC at the end of January, coinciding with the due date for the 2023/24 tax returns. Nonetheless, a second payment is expected by the end of July, termed a 'payment on account', which contributes towards their forthcoming tax bill. These instalments aim to ease the annual tax burden by spreading out payments and are estimated based on the previous year's tax liability. Yet, it's all too easy to overlook this deadline. Delays in settling the tax bill can trigger monetary sanctions from HMRC, with the penalty amount varying according to the tax owed and the extent of the delay. To ascertain if a payment is due before July 31, Scots are advised to log into their HMRC online account and review their self-assessment statement, reports the Daily Record. Should you anticipate that your tax liability will be less than the previous year, you have the option to apply for a reduced 'payment on account', which can be accomplished online or via post. Andrew Bartlett, chief executive of Advice Direct Scotland, commented: "Paying a tax bill is a long way from most people's minds during the height of the summer, which is why it is so easy to miss this particular HMRC deadline. "However, late payment fines will start to accrue if you forget about it, so make sure you login to your online account now and check if you need to act. "If your situation has changed and you think you will be liable to pay less tax than previously, make sure to ask for a reduction, which will keep the money in your pocket." He continued: "If you find the whole thing confusing, don't worry - the team is here to help Scots with self-assessment queries, completely free of charge. The service is backed by HMRC and provides an alternative to calling them directly." Advice Direct Scotland provides a complimentary tax helpline and website named which has HMRC backing, to assist individuals in understanding their tax responsibilities. Those requiring support with navigating the self-assessment procedure can contact a specialist adviser on 0800 756 3381. Beyond self-assessment guidance, personnel can respond to enquiries across numerous areas, from PAYE to National Insurance questions. They can also provide direction on tax matters relating to pensions, inheritance tax, capital gains tax, and marriage allowance, whilst offering assistance with claiming Child Benefit and Tax Credits.
Daily Record
6 days ago
- Business
- Daily Record
People warned to check if they owe tax ahead of payment deadline this month
People must settle their tax bills by midnight on July 31 to avoid potential fines from HMRC. Income tax rises for Scots in April - how the changes affect you Scots have been urged to check now if they need to pay any tax for the 2024/25 financial year ahead of a looming payment deadline. Advice Direct Scotland has issued a reminder that people must settle their tax bills by midnight on Thursday, July 31, to avoid potential fines from HM Revenue and Customs (HMRC). Those registered for self-assessment for the 2024/25 tax year may already have paid HMRC an initial instalment at the end of January, when tax returns for 2023/24 were also due. However, a second instalment is also due at the end of July, known as a 'payment on account', which goes towards their next tax bill. The payments are designed to help spread the cost of tax throughout the year and are calculated based on the previous year's tax bill. But the deadline is easy to miss. Paying the tax bill late can lead to financial penalties being issued by HMRC, with the amount depending on how much tax is owed and how late the payment is. To check if you need to pay something before July 31, Scots should login to their HMRC online account and check their self-assessment statement. If you know the tax you owe is going to be lower than last year, you can request a reduction in the payment on account, which can be done either online or by post. Andrew Bartlett, chief executive of Advice Direct Scotland, said: 'Paying a tax bill is a long way from most people's minds during the height of the summer, which is why it is so easy to miss this particular HMRC deadline. 'However, late payment fines will start to accrue if you forget about it, so make sure you login to your online account now and check if you need to act. 'If your situation has changed and you think you will be liable to pay less tax than previously, make sure to ask for a reduction, which will keep the money in your pocket.' He added: 'If you find the whole thing confusing, don't worry - the team is here to help Scots with self-assessment queries, completely free of charge. The service is backed by HMRC and provides an alternative to calling them directly.' Advice Direct Scotland offers a free tax helpline and website called which is backed by HMRC, to help people understand their tax obligations. Those who need help navigating the self-assessment process can call a specialist adviser on 0800 756 3381. As well as advice on self-assessment, staff can answer questions on a wide range of areas, from PAYE to National Insurance queries. They can also offer guidance on tax related to pensions, inheritance tax, capital gains tax, and marriage allowance, as well as help with claiming Child Benefit and Tax Credits.
BBC News
6 days ago
- Business
- BBC News
Why employment figures aren't up to the job
Unemployment in Scotland is down, while it has risen in the rest of the monthly figures on the jobs market tell us the share of the adult population in Scotland searching for a job between March and May was down to 3.7%, while it was up to 4.7% across the UKThat seems like good news for the Scottish economy. But can these figures be trusted? According to the people who compile them no, they can't, and be careful how you use margin of error for the Scottish figure is 0.7 percentage points either way, so unemployment could be 3% or 4.4%. And while there's a smaller margin on the UK figure, it means that the Scottish figure could be higher than the UK one, but probably isn't. Such numbers are no longer given the stamp of approval as National Statistics. Why? I'll come back to let's look at some numbers that are more reliable. They come from HM Revenue and Customs which - as many of us know - takes tax off employed people's pay at source in the month it is collection agency knows the number of people on payrolls, how that number varies, and how median pay for employees is changing. They can do that at a Scottish level as well the UK and other bits of the Scotland, that tells us there were more than 2.5 million people in payrolled jobs in June. And since June of last year there's been a fall in that total of 16,000. With more data due, they'll revise that figure next reliable way of counting captures only one element of the number of people seeking work in any month - the claimant count of those seeking benefits due to unemployment. Lots of people who are unemployed do not claim or don't qualify for claimant count hasn't changed much over the past three years. The newly-published figure is 107,200 claimants in Scotland last month - up 1,800 on the previous month, and down 1,300 on June last year. How has pay been affected? According to HMRC, median employee pay in the month to June was up 5.4% and earning £2,546. (A reminder: if all employees were lined up, the median would be the person in the middle.)Across the UK, that figure rose faster, at 5.6%. And when you take inflation into account - at 3.6% we learned this week - real earnings rose by 1.8%.That does not include self-employed workers. There are very poor stats on them until a long time later because they don't declare their income, or even if they've been working, until several months after the end of the financial year. Earnings this month have to be declared by the end of January 2027. The figures filed in January this year were for earnings up to 20 months other measure of earnings from the ONS is from a survey of British workers taken between March and May, including the self-employed but not including Northern Ireland (for reasons I haven't yet discovered).That increase in average monthly earnings was 5% in cash terms. That's down from 5.3% in the previous three months, December to February. And if you exclude bonuses, it's the lowest rate of increased earnings for nearly three years, reflecting the fall also in price you're in the public sector, average monthly earnings were up 5.5% in the year to spring, in the private sector it was 4.9%. The real increase, after accounting for price inflation up to those spring months, was again 1.8%. But if you include housing costs, only a 1% real boost to your spending power. This takes us back into the murky statistics of the Labour Force Survey. It's carried out throughout the year by the ONS. It used to be reliable and statistically sound, but since the pandemic, things have gone badly wrong with partly because survey response rates from the public have fallen sharply. It seems we're not as willing to engage with people asking us questions about our working lives and our earnings, particularly younger also because the ONS embarked on a change in the way it gathers information, moving from face-to-face-interviews to online questionnaires. It planned that transition badly, and the stats that it gathered ceased to be ONS claims things are turning around. They're getting more people in the survey, down from 84,000 every three months to 44,000 when, to quote an ONS source, things were "truly awful". That's risen to nearly 70,000 people it's getting better, but still not certificated as sound. And don't bother comparing the most recent survey figures for March to May with last year, or the year if you dig into these figures, you'll find that big range of possible outcomes. For instance, the estimated increase in the number of Scots in employment in March to May was plus 22,000, but that could be wrong, by plus or minus 74,000. So there's a reasonable chance that the number it matter? Yes, because in making policy and distributing funds, those in government need to have the best information about the economy. What about people who can't work because of ill-health? The Bank of England's chief economist complained to the ONS about the difficulty of setting interest rates when the employment figures cannot be take the concern about the number of people who are not available for work, and classified as economically inactive. They're a big focus of government benefits bill for people who are economically inactive due to long-term illness has been rising very steeply. The government came badly unstuck when it sought to cut entitlement to that welfare benefit, and was forced into a do they know how many people are not able to work because of ill-health, or would like to work if they got more help, or have no intention of working? They look to the ONS UK-wide figures are more reliable, because there's a much bigger sample. But even with the increased sample, the margin for error when taking only parts of the UK can leave much uncertainty. Within the Scottish cohort in the most recent numbers, the number of economically inactive people is estimated to be 756,000, but that could be out in either direction by up to 68, ONS has done a full reversal of the move to online questionnaires, at least for the meantime. It plans a long-term shift back to using online questionnaires, while avoiding the mistakes made in the past few years. For now, the survey is based on face-to-face interviews for the first encounter and five follow-up phone calls and online questionnaires with the same people in each of the next five quarters. Change is coming There have been other foul-ups in collecting the stats, including a hiatus in producer prices. In clearing up the mess at ONS, the boss went quietly in May, citing health reasons. Sir Ian Diamond was previously principal of Aberdeen University, where his pay-off was the subject of national independent inquiry into the ONS was set up in April and reported last month, referring to big problems with the management style on Sir Ian's watch, where people were unable to challenge the workload of reform while continuing round-the-calendar workload was unrealistic, bosses did not want to hear unwelcome news, the inquiry found it unsurprising that senior people were leaving, and the quality of output was declining. Last week, ONS chair Sir Robert Chote quit his post, after being told by the government that new leadership was needed, along with integrity in the there are changes being made to the way the ONS is run, with a recommendation from the inquiry report that an experienced change manager is brought in, while someone else leads on the crunching of numbers.
Glasgow Times
16-07-2025
- Business
- Glasgow Times
Taxpayers urged to check HMRC deadline to avoid fines
Advice Direct Scotland has issued a reminder to taxpayers across Scotland that self-assessment payments must be made by midnight on Thursday, July 31, to avoid fines from HM Revenue and Customs (HMRC). The warning is particularly relevant for those who pay tax through the self-assessment system. Read more: Children First seeks 'vital' safeguarders to champion children's rights Many self-assessment taxpayers will have already made a first payment on account in January when settling their 2023/24 tax bill. However, a second instalment – known as a "payment on account" – is also due at the end of July. These payments are based on the previous year's tax bill and are designed to spread the cost more evenly throughout the year. Missing the deadline can result in financial penalties, which increase depending on the amount owed and the length of the delay. Taxpayers are advised to log in to their HMRC online account to check their self-assessment statement and confirm whether a payment is due. If they expect their tax bill for 2024/25 to be lower than the previous year, they can request a reduction in the payment on account through HMRC's online services or by post. Andrew Bartlett, chief executive of Advice Direct Scotland, said: "Paying a tax bill is a long way from most people's minds during the height of the summer, which is why it is so easy to miss this particular HMRC deadline. "However, late payment fines will start to accrue if you forget about it, so make sure you log in to your online account now and check if you need to act. "If your situation has changed and you think you will be liable to pay less tax than previously, make sure to ask for a reduction, which will keep the money in your pocket." Advice Direct Scotland operates a free tax helpline and website – taxadvice. scot – supported by HMRC to help taxpayers understand their obligations. The service offers guidance on various topics, including self-assessment, PAYE, National Insurance, pensions, inheritance tax, capital gains tax, marriage allowance, child benefit, and tax credits. Those who need help can call a specialist adviser on 0800 756 3381. Mr Bartlett said: "If you find the whole thing confusing, don't worry – the team is here to help Scots with self-assessment queries, completely free of charge. "The service is backed by HMRC and provides an alternative to calling them directly."
