Latest news with #TAXINGTIMES
Scottish Sun
4 days ago
- Business
- Scottish Sun
Keir Starmer opens door to Budget tax raid after inflation unexpectedly jumps to 3.6 per cent
Ministers in recent days have struggled to say who would escape tax hikes TAXING TIMES Keir Starmer opens door to Budget tax raid after inflation unexpectedly jumps to 3.6 per cent Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) SAVERS were last night bracing themselves to be hit in the pocket as Sir Keir Starmer appeared to open the door to a Budget tax raid. The Prime Minister indicated they could be hit when pushed on how he would define a working person - with the Labour manifesto promising to protect them. Sign up for Scottish Sun newsletter Sign up 2 The Labour manifesto promised to protect working people from tax hikes, pictured Chancellor Rachel Reeves who is attempting to balance the books Credit: Reuters It comes as inflation unexpectedly rose to 3.6 per cent for June with petrol and food costs seen as driving factors. Ministers in recent days have struggled to say who would escape tax hikes but Transport Secretary Heidi Alexander at the weekend said people on 'modest incomes' would be safe from hikes. The PM, when asked what to explain a modest incomes, said: 'I think of the working people across this country who put in every day and don't get back what they deserve. 'That is who we are working for… the sort of people that work hard but haven't necessarily got the savings to buy themselves out of problems.' READ MORE ON TAXES TAXING TIMES Wetherspoons boss blasts Rachel Reeves' tax raid, warning more pubs will shut Tory leader Kemi Badenoch said high taxes brought in such as the national insurance hike was the reason why the economy had shrunk. Sir Keir said that his government was 'only just getting started' as he was pushed about decisions at the Budget this autumn. Meanwhile, households could see the brakes put on interest rate cuts after inflation hit its highest rate for 18 months. Petrol and food costs drove the unexpected hike to 3.6 per cent in June, up from 3.4 per cent the previous month, giving Bank of England chiefs a headache in turning around the sluggish economy. Businesses and shops also pushed up prices after the £25 billion national insurance tax raid and the minimum wage hike came in from April. Suren Thiru, of the Institute of Chartered Accountants in England and Wales, expects bank bosses to make a cut next month from 4.25 per cent. Raising taxes will kill off growth, Reeves warned as she pledges to rip up business red tape But she added that 'given mounting worries over economic conditions, these figures may increase caution over the pace of future rate cuts'. The bank's target rate is 2 per cent. The figures will pile more pressure on Chancellor Rachel Reeves as she attempts to balance the books amid global uncertainty of Donald Trump's global tariffs. One area of concern is core inflation - which excludes energy and food costs - went up from 3.5 to 3.7 per cent in May, the Office of National Statistics said. Ms Reeves said: 'I know working people are still struggling with the cost of living.' She added that she would deliver to 'put more money into people's pockets'.
Scottish Sun
07-07-2025
- Business
- Scottish Sun
HMRC issues huge crypto update as tax crackdown to launch – are you at risk of £300 fine?
We've explained how to avoid it TAXING TIMES HMRC issues huge crypto update as tax crackdown to launch – are you at risk of £300 fine? Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) HMRC has issued a major update on its crypto crackdown, with £300 fines set to be issued in months. From January 2026, anyone holding crypto like Bitcoin, Ethereum, or Dogecoin must provide personal details to each crypto service provider they use. Sign up for Scottish Sun newsletter Sign up 1 Those who don't comply risk a £300 fine from HMRC Credit: Getty Users will need to provide their name, date of birth, address, and national insurance number (or tax identification number for non-UK residents). HMRC warned on X (formerly Twitter) today that failure to comply could result in a £300 fine. Service providers will also face penalties of up to £300 per user if they fail to report accurate data. The new rules, called the Cryptoasset Reporting Framework, aim to uncover unpaid tax on crypto profits. HMRC will use the data to identify users who haven't paid the tax they owe. In the UK, you need to report crypto earnings to HMRC because any profit you make from selling, exchanging, or using cryptocurrency can be subject to capital gains tax (CGT) or income tax. You're liable to pay CGT on crypto when you dispose of it (e.g. sell it, trade it, gift it) and make a profit that exceeds your annual CGT allowance, which is currently £3,000 a year. The amount of CGT you'll pay in the UK depends on your income tax band. If you're a basic rate taxpayer, you'll pay 18% CGT on those profits. If you're a higher rate taxpayer, you'll pay 24% CGT. Four bombshell clues in hunt for elusive Bitcoin founder Satoshi Nakomoto revealed in doc - & signs he could be BRITISH Even with new data sharing between platforms and the tax authorities, you must still complete a self-assessment tax return if: Your total taxable gains from cryptoassets exceed the annual tax-free allowance (£3,000). You receive cryptoassets as part of your employment, but income tax and national insurance haven't been deducted through PAYE. Your total income, including earnings from crypto-related activities, is higher than the annual tax-free allowance. People who are unsure about their tax obligations can check if they need to pay tax when they receive or sell crypto on James Murray, exchequer secretary to the Treasury, said: "By ensuring everyone pays their fair share, the new crypto reporting rules will make sure tax dodgers have nowhere to hide, helping raise the revenue needed to fund our nurses, police and other vital public services." Jonathan Athow, HMRC's director general for customer strategy and tax design, added: "Importantly, this isn't a new tax – if you make a profit when you sell, swap or transfer your crypto, tax may already be due. "These new reporting requirements will give us the information to help people get their tax affairs right." What is cryptocurrency? Cryptocurrencies differ from physical currencies, such as the pound. They are created using blockchain technology and part of their appeal is that they are not controlled by governments or a central bank, such as the Bank of England. It means the currency can be used to transfer wealth outside of the traditional banking system, making it easier to cross borders or stay anonymous when moving wealth. Bitcoin is the leading cryptocurrency but its rise has helped other cryptocurrencies also grow in value, such as Ethereum. In recent years, more mainstream companies and institutions have invested in cryptocurrency, and part of the recent rise in value is based on President Trump's favourable views on cryptocurrency. The dangers of investing in crypto HERE are five key risks to keep in mind when investing in cryptocurrencies: Consumer protection: Many cryptocurrency investments promising high returns are not fully regulated, apart from anti-money laundering rules. This means you may have limited protection if things go wrong. Price volatility: Cryptocurrency prices can rise and fall dramatically, making it easy to lose money. It's also difficult to reliably determine their value. Product complexity: Crypto products and services can be complicated, which makes it hard to understand the risks. Plus, there's no guarantee you can convert your cryptocurrency back to cash—it depends on market demand and supply. Charges and fees: Crypto investments often come with high fees, which can eat into your returns. These fees are often higher than those for regulated investments. Marketing hype: Some firms exaggerate potential returns or downplay the risks involved. Be cautious of flashy promotions. It's essential to only invest in cryptocurrency if you fully understand how it works and the risks involved. Remember, there's no guarantee you can exchange it for real cash, and its value can change drastically in a short time. If something sounds too good to be true, it probably is. Always double-check with a trusted friend or advisor if you're unsure. Be wary of glowing websites or perfect reviews - fraudsters often create convincing scams. For tips on avoiding scams, check out our guide. How do people invest in crypto? In the UK, you cannot invest in cryptocurrency funds through stocks and shares ISAs, general investment accounts, or pensions due to regulations. If you want to invest in Bitcoin or other cryptocurrencies, you'll need to use specialist trading platforms like Coin Bureau or PlanB. These platforms allow you to own crypto as a financial asset, though some accounts may not let you spend it. Crypto businesses in the UK must register with the Financial Conduct Authority (FCA). To check if a business is registered, visit the Financial Services Register at There's also a list of unregistered businesses at Businesses on this list may be operating illegally. If you don't want to invest in cryptocurrencies directly, you can still gain exposure to the market by investing in companies involved in the crypto space. For example, you could invest in companies that hold Bitcoin or facilitate crypto trading. A popular option for UK investors is buying shares in MicroStrategy, a US company that actively invests in Bitcoin.
Scottish Sun
26-06-2025
- Business
- Scottish Sun
Warning for 420,000 people on the state pension being hit with tax bill for the first time – can you avoid it?
We reveal how you make the most of your cash to avoid paying income tax below TAXING TIMES Warning for 420,000 people on the state pension being hit with tax bill for the first time – can you avoid it? Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) HUNDREDS of thousands of state pensioners are set to be stung with a tax bill for the first time. Fresh data from HMRC shows 8.7million people of state pension age or older will pay income tax on their retirement income in 2025/26. Sign up for Scottish Sun newsletter Sign up 1 State pensioners are facing paying income tax due to fiscal drag Credit: Getty This is a 420,000 rise compared to the previous financial year and a hike of 1.85million from 10 years ago (2015/16). The blow comes due to a combination of a rising state pension, under the Triple Lock, and frozen income tax thresholds - known as fiscal drag. The full new state pension is currently worth £11,973 a year while the personal allowance is £12,570, with the threshold frozen until 2028. The full new state pension amount on its own is not yet enough to breach the allowance. However, older people receiving income from other avenues like a private pension or job on top of a state pension can end up going over the threshold and having to pay tax. David Brooks, head of policy at leading independent consultancy Broadstone, said: "We would expect a growing number of pensioners to be liable for income tax as the country's demographic changes due to our ageing population. 'Fiscal drag, however, is also bringing hundreds of thousands more pensioners into paying income tax bracket every year as the frozen personal allowance thresholds combines with the Triple Lock-protected state pension. 'While perhaps personally frustrating for many pensioners, it reflects the nature of inflation linked occupational pensions and a Triple-locked state pension that continue to rise." It's not just people receiving income through a state pension and other streams who are set to pay income tax either. As the state pension rises under the Triple Lock, some relying solely on this could end up paying tax. What are the different types of pensions? The Triple Lock ensures the state pension goes up by whatever is highest out of inflation, 2.5% or wages. Previous forecasts by Deutsche Bank predict the Triple Lock will rise by £600 in April 2026 to £12,631. This would see someone on the full new state pension breach the personal allowance for the first time and having to pay tax. In May 2024, then Chancellor Jeremy Hunt said the income tax personal allowance would be frozen at £12,570 until 2028. The freeze was first put in place in 2021. In her first Budget in October that year, Chancellor Rachel Reeves had been widely expected to extend the freeze beyond 2028. The Sun asked the Treasury to comment. How to avoid paying income tax on your state pension There are a few tricks you can use to lessen the chances of being taxed on your income if you're a state pensioner. The first is by withdrawing from a private or workplace pension tactically. It's tempting to take out your whole private or workplace pension when you reach retirement and put it into a savings account. But do this and you'll end up paying income tax on any sitting in taxable accounts. Instead, you can actually take out 25% of the value of the pension tax-free. You can either do this as a lump sum or in smaller gradual amounts to top up your state pension without being taxed on it. A second way is by making the most of your ISAs as withdrawals from these types of accounts aren't subject to income tax. For example, if you withdrew 4% from a £100,000 ISA pot, your take home pay would be £4,000. How does the state pension work? AT the moment the current state pension is paid to both men and women from age 66 - but it's due to rise to 67 by 2028 and 68 by 2046. The state pension is a recurring payment from the government most Brits start getting when they reach State Pension age. But not everyone gets the same amount, and you are awarded depending on your National Insurance record. For most pensioners, it forms only part of their retirement income, as they could have other pots from a workplace pension, earning and savings. The new state pension is based on people's National Insurance records. Workers must have 35 qualifying years of National Insurance to get the maximum amount of the new state pension. You earn National Insurance qualifying years through work, or by getting credits, for instance when you are looking after children and claiming child benefit. If you have gaps, you can top up your record by paying in voluntary National Insurance contributions. To get the old, full basic state pension, you will need 30 years of contributions or credits. You will need at least 10 years on your NI record to get any state pension. Do you have a money problem that needs sorting? Get in touch by emailing money-sm@ Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories
Scottish Sun
25-06-2025
- Business
- Scottish Sun
Council tax warning as record £8.3billion owed by millions of households – how to get help and avoid bailiffs
We reveal all the help you can get with your council tax below TAXING TIMES Council tax warning as record £8.3billion owed by millions of households – how to get help and avoid bailiffs HOUSEHOLDS have been issued a warning over a record £8.3billion in unpaid council tax. The latest Government data reveals millions across England, Scotland and Wales have fallen behind payments for the essential bill. New analysis from charity Debt Justice shows more than £6.2billion was owed by households in England at the end of March this year. Meanwhile, Scottish households owed £1.5billion and those in Wales £160million. The charity's analysis reveals council tax arrears across Britain has increased by 79% in the last five years, from £4.63billion in March 2020 to £8.2billion this March. Wales has seen the biggest hike, with a rise of 170% since 2020, nearly tripling from £59million. Arrears in England and Scotland have increased by 85% and 51% respectively over the last five years. Meanwhile, other recent research by Debt Justice found 4.4million people have fallen behind on their council tax, up from 3.2million a year ago. Council tax bills are expected to increase at their fastest rate in 20 years following Rachel Reeves' spending review. The average Band D council tax set by local authorities in England for this financial year is £2,280 - a 5% rise would see this go up to £2,394. Toby Murray, policy and campaigns manager at Debt Justice, said: "The vast majority of people aren't avoiding council tax, they simply can't afford it. How to Qualify for Free or Discounted Council Tax! "People in council tax arrears are overwhelmingly on low incomes, and many are living in poverty. "Rather than help, councils are sending in the bailiffs - punishing people for struggling with their bills. "Councils should end the use of bailiffs for council tax debt collection and instead introduce urgent reforms, including a duty of care to protect people most at risk." It comes as the Government plans a huge shake-up to the way council tax is collected following calls from campaign groups. Ministers are proposing households pay council tax bills over 12 months instead of 10 to help them manage their finances better as part of a consultation. The Government is also mooting changing the way council tax arrears are recovered. Under the plans, councils will have to wait longer before demanding a bill is paid in full and the costs charged to households through liability orders will be capped. A liability order is a demand for payment of council tax issued by a Magistrates' Court. Any changes included in the consultation are being discussed until September 12 and would come into effect this autumn. What happens if you don't pay council tax and what can you do? The repercussions for not paying council tax can be severe, hence why the Government is consulting on changing the rules. Your council will send you a reminder notice giving you seven days to pay if you miss a payment. If you don't pay within seven days, you'll have to pay the whole year's council tax. You'll then be sent a second reminder notice if you miss another council tax payment. You'll only get a maximum of two reminder notices in a financial year - this runs from April 1 to March 31 of the next year. Your council will ultimately send you a final notice saying you must pay the whole year's council tax if you miss a payment for the third time. If you don't pay this within seven days, you may end up being summoned to court. Your council can even send bailiffs to seize your property if there's no other way to recover your debt. The bailiffs' costs can be added to the total amount you owe the council. If you are struggling to get the funds together to pay off council tax arrears, you can pause any debt for 60 days under the Debt Respite Scheme, also known as Breathing Space. During this time, you receive professional advice to help you establish a long-term plan to clear any debt. You are also offered protection from bailiffs. You can find out more about who's eligible and how to apply.
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.
