HLAS

Flights departing from the UK are now set to become greener with the introduction of the Sustainable Aviation Fuel (SAF) Mandate, which came into effect on 1 January. From 2025, 2% of all jet fuel used for flights taking off from the UK must be SAF, with this percentage increasing by 2 percentage points each year to reach 10% by 2030 and 22% by 2040. SAF is sustainably sourced fuel, derived from materials such as household waste and used cooking oil. According to government data, fuel made from these sources generates an average of 70% fewer carbon emissions compared to [...]

HM Revenue and Customs (HMRC) have reported that 4,409 individuals chose to file their tax returns on Christmas Day, getting their 2023-2024 tax affairs sorted well in advance of the 31 January deadline. In total, 40,072 taxpayers submitted their returns over the festive period, demonstrating that even amidst holiday celebrations, there’s time for a bit of financial organisation. Festive Filing Insights The holiday statistics shed light on the filing habits of those who decided to take care of their tax obligations over Christmas: Christmas Eve: The busiest day, with 23,731 returns submitted, as some opted to prioritise tax returns over [...]

The start of January marks a time of new beginnings, and for business owners, it’s the perfect opportunity to pause, reflect, and plan ahead. After the whirlwind of the festive season, January offers a quieter moment to consider where your business is headed, how it’s performing, and whether you’re still on track to meet your goals. Why review your goals now? Setting goals is one thing – keeping track of them is another. Running a business is often about managing the immediate – urgent emails, pressing deadlines, and day-to-day challenges. Without a clear plan, though, it can be easy to [...]

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 [...]