HLAS

The key tax takeaways from the Scottish Budget, held on 4th December, concerned the Scottish Rate of Income Tax (SRIT) and Land & Buildings Transaction Tax (LBTT). Scottish Rate of Income Tax If a taxpayer’s main residence is in Scotland or they are otherwise classed as a ‘Scottish taxpayer’, their non-savings/non-dividend income is subject to the SRIT. Cabinet Secretary for Finance & Local Government, Shona Robinson, announced that the SRIT will not be increased and no new bands will be introduced for the remainder of this parliament. From 6 April 2025, the Basic and Intermediate rate thresholds will however increase [...]

With the 31 January Self Assessment deadline fast approaching, HMRC is urging taxpayers to stay vigilant against fraudsters. Over the past year, scam referrals to HMRC have risen by 16.7%, with nearly 150,000 cases reported in the year to November 2024. A large number of these referrals involved fake tax rebate claims. HMRC has reiterated that they never request personal or financial information via text messages, nor do they leave voicemails threatening legal action or arrest. If you receive any communication claiming to be from HMRC that asks for personal details or offers a tax rebate, it is crucial to [...]

Prior to the Autumn Budget, there was hope that the new Labour Government might further delay the introduction of Making Tax Digital for Income Tax (MTD for IT). However, such hopes were dashed on Budget day, with confirmation of the previously-announced timescales and an additional announcement that individuals with income from trading or property of over £20,000 will be mandated to comply with MTD for IT requirements in future. The mandate timescales are as follows: At present, no mandate deadlines have been set for partnerships. Complying with the requirements of MTD for IT will involve keeping business records in specialist [...]

Payrolling benefits in kind allows employers to report benefits such as company cars or medical insurance directly through payroll, with income tax on these benefits collected over the course of the tax year via adjustments to employees’ tax codes. When a benefit is payrolled, it does not need to be included on form P11D. However, certain benefits, such as employer-provided living accommodation and beneficial (interest-free or low-interest) loans, cannot be payrolled and must still be reported on the P11D. Employers wishing to payroll benefits must register with HMRC before the start of the tax year in which they intend to [...]

As part of the Autumn Budget 2024, the Government published its 'Corporate Tax Roadmap.' This comprehensive plan aims to provide corporate businesses – and, in certain areas, non-corporate businesses – with clarity and confidence in the tax framework ahead, supporting informed decision-making. The Roadmap highlights areas where the Government plans to maintain consistency throughout this parliament, alongside areas where changes are anticipated. Corporation tax rates The Government has pledged not to raise corporation tax rates for small or larger companies, ensuring they remain competitive. Small companies (with profits below £50,000 annually) will continue to pay 19%, while larger companies (with [...]

A new Business Growth Service has been launched to provide businesses across the UK with faster and easier access to help, support, and advice. The new initiative comes in response to feedback from small businesses that found the business support landscape fragmented and overly complex. In 2023, only 26% of UK SME employers reported seeking external advice or information. The Business Growth Service will introduce a revamped web platform, scheduled to launch in the first half of 2025. This new offering will be developed in collaboration with small businesses and will work alongside governments—both local and devolved—across the UK. The [...]

Chancellor Rachel Reeves addressed a meeting of EU finance ministers last week as part of the government’s efforts to deliver an economic reset with the EU. It marked the first time a UK Chancellor has attended such an event since the UK left the EU. The Chancellor discussed tackling shared challenges, including the war in Ukraine, promoting free trade as a driver of economic competitiveness, and strengthening bilateral economic partnerships. She emphasised her aim for a reset that would reduce trade barriers, create investment opportunities, and enable businesses in both the UK and EU countries to sell more effectively in [...]

British pork producers are celebrating a significant breakthrough as China’s Covid-era restrictions on UK unprocessed pork exports have been lifted. Industry estimates suggest this development could boost revenues by approximately £80 million, delivering substantial benefits to UK farmers and the wider economy. A Lucrative Market Reopens With restrictions now removed, British bangers and other premium pork products can once again be exported to China. Major UK producers have already been given the go-ahead to resume exports, enabling them to capitalise on opportunities in a market that purchased £180 million worth of pigmeat in 2023. China now has the potential to [...]

Those of us who rely on a morning coffee fix to kick-start the day may soon find it getting more expensive. Coffee prices on international commodity markets soared to their highest level on record last week. The price of Arabica beans, the most commonly used beans in global coffee production, rose to $3.44 a pound, marking an increase of more than 80% this year. Similarly, Robusta beans reached a fresh high in September. Coffee traders are now anticipating smaller crops due to extreme weather conditions in Brazil and Vietnam, two of the world’s largest coffee producers. Brazil experienced its worst [...]

HM Revenue and Customs (HMRC) have announced the launch of a new interactive online tool and clearer guidance for those who are already self-employed and those considering it. The new tool explains what records a self-employed person may need to keep, taxes that may apply to their business, and includes other useful information, such as how to pay a tax bill. HMRC’s new Set Up as a sole trader: step by step guide can help people who work for themselves understand the situations in which they may need to register as a sole trader and how they can do so. [...]