Digital Tax Accounts/Making Tax Digital 

Digital Accounts were initially announced in 2015 and are now established as Personal Tax Accounts for a large number of taxpayers, having been phased in over the last 5 years.  
The basic idea is that each individual will be able to access their tax account 24/7 via all digital means. All employers/pension providers/banks/investment houses and so on will provide direct information to this HMRC system to pre populate sections of the individual accounts. At present these accounts do not replace the Self Assessment system where individuals fall within HMRC requirements to report annually via a Self Assessment return. 
Progress of the MTD project has been slower than anticipated and currently only VAT registered businesses are mandated under new legislation, from April 2022, with individual landlords and smaller businesses currently continuing under Self Assessment. The initial intention was for HMRC to proceed with MTD for all businesses and landlords with turnover in excess of £10000, which had been delayed several times to 2024, HMRC have announced a further pushback and to apply to income from these sources of over £50000 to 2026, over £30000 to 2027 and guidance will be issued re figures below this in due course. 
If you wish to discuss how this impacts your own individual position please get in touch. 

Resident v Non Resident Issues 

Following the introduction of legislation defining residence and non residence for UK tax purposes, various scenarios now exist that did not before whereby without planning even where it seems obvious that a taxpayer is not resident he or she can easily be deemed resident under the new rules. 
Averaging of visits to the UK over 4 years to determine long term status no longer apply, and someone can, in certain circumstances, be resident in the UK for the entire year by simply being in the UK for as few as 16 days. Generally, if an individual works full time abroad for a complete tax year he or she will not be UK resident in that year if they keep within visit limitations and split year treatment may apply before and after. However, if not working full time then they may continue to be resident in the UK depending on ties to the UK such as a home being available or dependent children remaining in the UK. 
This is an area where advice should be sought in the first instance and on a continuing basis as there are now a number of factors to consider annually to ensure that residence status is in accordance with the facts under the new legislation. 

Top Rate of Tax, Tax on Savings and Personal Allowances 

The top rate of tax was altered with effect from 2013/14, reducing the top rate charged to 45%, which remains for 2022/23 and 2023/24. 
A restriction in Personal Allowances now applies for those individuals earning in excess of £100000, with the Personal Allowance reducing by £1 for every £2 above the limit. Income in excess of this, taking in to account the allowance restriction can be seen to give a liability at up to 60% on personal allowances lost.  
Each basic rate taxpayer can now receive up to £1000 of bank interest tax free, banks currently pay interest gross. This allowance is reduced to £500 for higher rate taxpayers, and to zero for top rate payers. Anyone in receipt of more than £1000 interest and/or higher rate payers will need to review their position at least annually to ensure they do not build up an unforeseen tax liability. 
Rates of tax on dividends have also changed, with the first £2000 exempt for 2022/23, and then several rates applying thereafter. This allowance will be reduced to £1000 from April 2023 and £500 from 2024. Previously, basic rate payers had no additional liability on top of the 10% tax credit, higher rate payers paid an additional 22.5%. The changes in tax rates on dividends will require careful calculations for any taxpayer in receipt of more than £500 from this source, dividends are subject to the additional "health and social care levy" charge from April 2022. 
A "married couples allowance" now exists. This is not an additional allowance, but simply a transfer of 10% of one spouse's personal allowance to the other, where one spouse is a basic rate payer and the other does not pay tax at all. This situation needs to be kept under review/considered annually, the maximum saving is 10% of the personal allowance at 20%. 
Whilst we cannot do anything to change tax rates or allowances it may be possible to look at an individual situation and take advantage of opportunities to reduce an individual's overall liability. This can at one end be by simply by claiming previously unclaimed allowances or at the other by taking advantage of government encouraged investment, dependant on attitude to general investment risk etc. We do not participate in or sell any aggressive tax avoidance schemes, nor will we act for clients involved in such schemes. 


1 April 2024 
Corporation tax rate for companies is 25% for 2024/25 onwards, small companies rate 19% (profits to £50,000), marginal relief between £50000 and £250,000 
6 April 2024 
HMRC issue Self Assessment returns and Notices to Complete a return for the year to 5 April 2024 
31 July 2024 
Second payment on account due for 2023/24 (based on 50% of 2022/23 liability unless 2023/24 return already submitted and the liability is lower for later year in which case it will be the lower balance due) 
Further 5% surcharge added to any tax unpaid for 2022/23 tax year. 
30 September 2024 
Due date to file accounts at Companies House for private limited companies with a 31 December 2023 year end, penalties imposed after this date. 
1 October 2024 
Corporation tax due for small companies with accounting periods ended 31 December 2023. 
5 October 2024 
Latest date to inform HMRC of new sources of personal income for 2023/24 year. 
31 October 2024 
Final date for submission of a return on paper, for HMRC to calculate the tax position and to apply for tax to be coded against income in following year based on a paper return (where less than £3000) 
1 November 2024 
Paper returns submitted after this date will attract a £100 penalty 
30 December 2024 
Final date for submission of an online return where any tax under £3000 can be collected via a notice of coding against income in the following year. 
1 January 2025 
Corporation tax due for small and medium sized companies with accounting periods ended 31 March 2024, interest charged after this date. 
31 January 2025 
Final date for submission of an online return 
Final date for paper returns for taxpayers who are unable to submit online where HMRC are unable to accept online returns (exclusions) 
Due date for payment of Final payment for 2023/24 liability 
Due date for payment of 1st payment on account for 2024/25 (where more than £3000 payable or greater than 20% of total tax liability for 2023/24) 
1 February 2025 
Interest starts to run on unpaid tax as at 31 January 2025 
£100 penalty imposed where HMRC requested return for 2023/24 but not submitted. Additional penalty of £10 per day for 3 months (total up to £900) starts running at midnight. 
28 February 2025 
5% Surcharge added on tax unpaid for 2023/24 at this date, interest will still be running. 
31 March 2025  
Final dale to submit CTSA return for year ended 31 March 2024. 
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