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Daily Mirror
7 days ago
- Business
- Daily Mirror
New HMRC service will allow workers to 'take control of their tax'
HMRC has launched a new digital service that will make it much easier for 35 million people to take control of their taxes and the movements of things such as their income and expenses Good news - workers are now able to take control of their tax affairs following the UK government's announcement of a new Pay As You Earn (PAYE) service. Affecting 35 million on PAYE, the new digital system boasts more than 50 new measures, aiming to streamline processes and even cut costs by £50 million through reducing postal correspondence. Available via their Personal Tax account or through the HMRC app, it will now make it 'simpler and easier' for all PAYE taxpayers to check and update their income, allowances, expenses and reliefs, the shared. The new service forms part of HMRC's Transformation Roadmap, which launched on July 21, 2025, with a mission to become a digital-first organisation by 2030 and make 90% of customer interactions digital. Setting up over 50 IT projects, services and measures, it will transform the UK's tax and customs systems, making it easier to pay the tax that is spent towards public services and deliver the UK Government's Plan for Change. Under the digital-first approach, HMRC will offer additional digital self-serving alternatives across various tax regimes and, wherever possible, automate tax. The new PAYE service will also allow the HMRC to save an annual amount of £50 million, equivalent to 1,500 full-time nurses. To do so, they will swap customer letters and reminders to a digital-first approach to minimise the use of paper correspondence by the 2028/2029 tax year. The news follows other plans to incorporate more AI into their services, ensuring all guidance and content is up to date, as well as assisting in identifying fraudulent documents during compliance checks. READ MORE: HMRC alert as 1 million taxpayers 'haven't claimed money they're owed' 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,' he explained. JP Marks, HMRC's Chief Executive and First Permanent Secretary, also commented: '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.' He added: '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.' Other elements in the Transformation Roadmap are currently in progress for further usage, such as expanding the SMS confirmation services to include complaints, Self Assessment appeals, and other PAYE services. Interestingly, in the 2023 to 2024 tax year, HMRC collected 94.7% of the total tax due. Later this year, they will share an update on modernising behavioural penalties.
Hindustan Times
22-07-2025
- Business
- Hindustan Times
What is student loan forgiveness under IBR? What other plans have been paused
President Donald Trump's Department of Education, headed by WWE co-founder Linda McMahon, has suspended student loan forgiveness under Income-Based Repayment Plan (IBR). IBR has been suspended by the Department of Education(AP) This is the only current plan not subject to any legal challenge or court injunction. How IBR works? Student loan forgiveness under IBR works with a formula that is tied to a borrower's income and family size. This is used to determine how much the borrower needs to pay back monthly. Then, payments are recalculated every 12 months. Borrowers who do not pay back their entire student loans by the end of their repayment term – which is 25 years, for borrowings prior to July 1, 2014, and 20 years for anything borrowed after that – would then be entitled to student loan forgiveness. What other plans have been paused? Some of the other plans are paused due to court rulings. These include – Pay As You Earn (PAYE) Plan - As per the US Federal Student Aid site, 'the PAYE Plan is an income-driven repayment plan with monthly payments that are generally equal to 10% of your discretionary income, divided by 12, but never more than the 10-year Standard Repayment amount.' Saving on a Valuable Education (SAVE) Plan - This plan replaced the Revised Pay As You Earn (REPAYE) Plan. Borrowers on the latter plan were automatically switched to the SAVE plan. The Department of Education describes this to be like any other income-driven repayment plans (IDR). It calculates monthly payment amount based on your income and family size. There are some advantages of opting for the SAVE plan, as highlighted by the Education dept. These include: keeping the balance in check while making required repayments, having more of the income protected for basic needs, seeing the remaining balance forgiven after as few as 10 years of payments, and having payments for undergraduate loans cut in half from July 2024. Income-Contingent Repayment (ICR) Plan - The US Federal Student Aid site defines ICR as 'a repayment plan with monthly payments that are the lesser of (1) what you would pay on a repayment plan with a fixed monthly payment over 12 years, adjusted based on your income or (2) 20% of your discretionary income, divided by 12.'
Daily Mirror
22-07-2025
- Business
- Daily Mirror
HMRC launches new service in tax shake-up as Government announces 50 new measures
HMRC has launched a new digital service changing how 35 million people interact with the PAYE system HMRC has unveiled a major overhaul to the UK tax and customs system today, July 21, set to impact 35 million people on PAYE. The fresh digital system boasts over 50 new measures and aims to streamline processes whilst also cutting costs by £50million through reducing postal correspondence. Employees using Pay As You Earn will gain access to a digital service designed to make their tax affairs "simpler and easier", according to the revenue authority. It will be accessible through your personal tax account or via the HMRC app. The updated service will enable PAYE taxpayers to modify the following entirely online: Income Allowances Reliefs Expenses A further enhancement to the system is scheduled for later this year to "modernise behavioural penalties". The tax authority highlighted its intention to prevent those who fulfil their duties from being penalised by those who fail to comply. This represents just one of more than 50 fresh measures HMRC intends to roll out over the coming years to become a "digital first organisation" through their Transformation Roadmap. Additional measures encompass a Digital Disclosure Service enabling customers to rectify errors and digitalising the Inheritance Tax system. It encompasses shifting customer reminders and notifications online, delivering an estimated £50million in savings from postal costs. The authority also intends to integrate more AI into their operations. Specifically, the plan is to utilise AI to aid customers in navigating HMRC services more efficiently and ensure all guidance and content from the authority is current. This will also assist in identifying fraudulent documents during compliance checks. With all these measures implemented, it is anticipated that by 2030, at least 90% of HMRC's customer interactions will be digital. James Murray MP, Exchequer Secretary to the Treasury, stated: "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." JP Marks, HMRC's Chief Executive and First Permanent Secretary, commented: "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." Currently, work is in progress on other measures in the Transformation Roadmap. Such as extending the rollout of the SMS confirmation service to Self Assessment appeals, complaint cases and some PAYE services. A reward scheme is also being established to incentivise informants to expose serious non-compliance in large corporations, wealthy individuals, offshore and avoidance schemes. The new scheme will offer informants compensation tied to a percentage of any tax collected.
The South African
09-07-2025
- Business
- The South African
SARS extends due date for filing EMP201 for July 2025
South African Revenue Service (SARS) Commissioner, Edward Kieswetter, has extended the due date for EMP201 filing and payment to 14 July 2025. EMP201 is a tax return that is submitted by an employer to SARS on a monthly basis. The extension was granted following the higher than expected volumes that were experienced on Monday which caused SARS systems to take longer to respond than expected. 'We recognise that some employers experienced delays in submitting their monthly EMP201's and as a result we will consider not imposing penalties and interest in relation to employers who would otherwise have been compliant. 'This process of payment is governed by paragraphs 2(1) and 14(2) of the Fourth Schedule to the Income Tax Act 58 of 1962, which provides for the payment of Pay As You Earn (PAYE), Unemployment Insurance Fund (UIF) and Skills Development Levy (SDL), and the submission of the EMP201 form within a period of seven days after the end of the month during which the amounts that were withheld from remuneration paid to employees,' SARS said. In terms of section 3 of the Income Tax Act, the Commissioner for SARS has the discretionary power to extend the respective due dates. 'In the exercise of that discretionary authority, SARS Commissioner has extended the due date for filing and payment be extended to Monday, 14 July 2025. 'The practical implication of this decision is that SARS will not impose penalties and interest in relation to employers who would otherwise have been compliant. Taxpayers are encouraged to submit their EMP201 returns before 14 July to avoid late penalties,' the revenue service said. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
Scottish Sun
03-06-2025
- Business
- Scottish Sun
HMRC warning to check codes on letters as workers are owed £700 each – check if you're affected
Find out how to check if you could be eligible TAXING TIMES HMRC warning to check codes on letters as workers are owed £700 each – check if you're affected BRITS are being urged to check their tax codes immediately as thousands could be due a £700 refund from HMRC. It comes as the May 31 deadline has passed for employers to issue P60 forms – a crucial document that confirms how much tax you've paid in the last financial year. 1 Thousands could be owed £700 from HMRC Credit: Alamy But tax experts are warning that many workers could be on the wrong tax code without even knowing it, potentially costing them hundreds of pounds. One in three Brits has been on the wrong tax code at some point, with average overpayments hitting a hefty £689, according to research by Canada Life. The blunder means HMRC could be sitting on billions in overpaid tax and the only way to get it back is to check your details and flag it. Taxpayers should double check the 'final tax code' on their P60 that's the string of letters and numbers near the top of the form. Codes like "BR", "D0", or "D1" should raise a red flag. These mean you may have been taxed at a flat rate with no tax-free allowance. Anyone who stayed with the same employer up to April 5 should have already received their P60, either in the post or digitally. And while it may be tempting to toss it aside, it's an important piece of paperwork. Not only is it used to claim tax rebates, it's also essential for applying for tax credits, benefits, loans, or even a mortgage. If you think your code is wrong, or if something doesn't look right on your payslip, it's time to act. Clampdown on tax dodgers is confirmed by Rachel Reeves in bid to fill spending black hole How to check your tax code You can check your current tax code by logging into your personal tax account online, using the HMRC app, or digging out your latest payslip. You may also have received a Tax Code Notice from HMRC in the post, so it's worth checking any recent letters too. If the numbers don't add up, contact HMRC directly. You can call them on 0300 200 3300 or write to: Pay As You Earn and Self Assessment, HMRC, BX9 1AS. Those who've overpaid could see a refund land in their bank within five days once their claim is processed or receive a cheque in the post within two weeks. But it's not always good news, some may find they underpaid tax and owe HMRC money. If that's the case, most will be asked to repay it gradually over 12 months. If you're owed money, you may also receive a P800 letter or a simple assessment telling you how much you're due and how to claim it. There's a four-year limit on claiming back overpaid tax, so if you think you've been overcharged, don't delay. Whether you're a full-time employee, working multiple jobs, or have just switched roles, it's worth double checking your code because a five-minute check could leave you hundreds better off. The Sun has approached HMRC for comment.
