Tax news: page 5
- October 2023
Council tax in Scotland frozen until April 2025
First Minister Humza Yousaf has announced that council tax in Scotland will be frozen at current levels until April 2025, keeping rates unchanged for around 2.5 million households in 2024-25.
- September 2023
Over half a million more pensioners could pay income tax after 8.5% state pension rise, experts warn
LCP estimates around 650,000 more people aged 65 and over would become income taxpayers if the state pension rises 8.5% in April 2024 while the personal allowance stays frozen at £12,570.
- August 2023
AJ Bell projects 2.7m savers to pay tax on savings interest in 2023-24
AJ Bell predicts 2.7 million savers will pay tax on savings interest in 2023-24, up from 1.8 million last year, as rising rates meet a frozen personal savings allowance.
Student loan repayment rules changed for new students from August 2023
Students starting university from August 2023 face a lower repayment threshold of £25,000, a 40 year write-off period and interest capped at RPI, under repayment rules that differ from earlier cohorts.
- July 2023
Government announces plan to let employed customers pay the HICBC through their tax code
The government has set out plans to let employed parents pay the High Income Child Benefit Charge through their tax code rather than registering for Self Assessment.
- June 2023
HMRC warns of rise in scams impersonating the tax agency ahead of tax credits renewal deadline
HMRC has warned of a rise in scam calls, emails and texts impersonating the tax agency, including phishing emails sent from Japanese addresses, ahead of the 31 July tax credits renewal deadline.
- May 2023
HMRC warns tax credits customers about renewal deadline scams
HMRC has warned around 1.5 million tax credits customers to watch for scams mimicking government communications ahead of the 31 July renewal deadline, as it reported new fraud tactics.
- April 2023
Dividend and capital gains tax allowance cuts take effect
The dividend and capital gains tax allowances announced in Jeremy Hunt's 2022 Autumn Budget took effect on 6 April 2023, halving the amounts that can be earned before tax is due.
Income Tax rates updated for 2023 to 2024
HM Revenue & Customs updated its published Income Tax rates and allowances for the 2023 to 2024 tax year on 6 April 2023, with later corrections to Scottish rates and earlier figures.
Additional rate threshold lowered from £150,000 to £125,140
The point at which income tax is charged at 45p in the pound fell from £150,000 to £125,140 from April 2023, and the threshold has been frozen at that level since.
Managed Migration started in Northern Ireland
Managed Migration to Universal Credit began in Northern Ireland in April 2023, initially inviting only Tax Credits only claimants, after the process had already been running in England and Wales.
Most Scottish councils raise council tax bills by at least 5% for 2023-24
Most Scottish councils raised council tax by at least 5% for 2023-24, with Orkney Islands up 10%, and ministers have proposed letting councils double bills on second homes from April 2024.
Move to UC begins for tax credit claimants
The Department for Work and Pensions began moving tax credit claimants onto Universal Credit in April 2023, a process the Office for Budget Responsibility says enabled the tax credit system to close in April 2025.
- March 2023
Top-up deadline moved to 31 July 2023
HMRC has given people until 31 July 2023 to top up National Insurance credits, extending a deadline that had been due to fall on 5 April.
- February 2023
HMRC warns of fake tax refund email scam
Fraudsters are sending fake tax refund emails that use HMRC branding and a claim link, and HMRC has issued a warning about the scam, according to Which?.
- January 2023
Government response announces intention to legislate on assignments
The government has confirmed it will legislate to stop taxpayers assigning income tax repayments to agents, with the change taking effect on 15 March 2023 for assignments notified to HMRC from that date.
Deduction tables last updated in 2023 ahead of usual cycle
Scottish Ministers have laid regulations to raise the earnings threshold at which wages can be arrested for debt from April 2025, with the protected minimum amount rising to £750 a month.
Health and Social Care Levy to exist from 2023
National Insurance rates rose by 1.25 percentage points in April 2022 as a precursor to the Health and Social Care Levy, which the Resolution Foundation said would exist from 2023.
- December 2022
MTD for income tax rollout delayed to April 2026
The start of Making Tax Digital for income tax has been pushed back to April 2026, giving self-employed people and landlords affected by the cost of living crisis longer to prepare.
- November 2022
Autumn Statement 2022 delivered by Jeremy Hunt
Jeremy Hunt's Autumn Statement of 17 November 2022 raised taxes, cut energy bill support from April and uprated benefits by 10.1 per cent, with the Resolution Foundation warning of a 7.1 per cent fall in household incomes.
Autumn Statement freezes income tax thresholds and lowers top rate threshold
The November 2022 Autumn Statement froze personal income tax thresholds, lowered the top rate threshold, announced a means tested £900 cost-of-living payment and committed to the pensions triple lock.
- October 2022
Health and Social Care Levy Act 2021 repealed
The Health and Social Care Levy Act 2021 was repealed on 25 October 2022 by the Health and Social Care Levy (Repeal) Act 2022, removing the provisions that had modified national insurance contribution rules for the 2022-23 tax year.
Jeremy Hunt reverses around 60 per cent of mini-Budget tax cuts and scraps the 1p basic rate Income Tax cut
Jeremy Hunt has reversed around 60 per cent of the mini-Budget tax cuts, scrapped the 1p basic rate Income Tax cut and brought forward the end of the Energy Price Guarantee.
Corporation Tax cut reversal announced the previous Friday
Jeremy Hunt reversed around 60 per cent of the tax measures from Kwasi Kwarteng's 23 September mini-Budget, including the £19 billion Corporation Tax cut, and brought forward the end of the Energy Price Guarantee.
- September 2022
Chancellor announces £45 billion of tax cuts
The Chancellor announced £45 billion of tax cuts on 23 September 2022, with analysis suggesting the richest five per cent gain 5.5 per cent while the poorest fifth lose 2 per cent.
SDLT nil-band threshold change reflected in guidance
HMRC has updated its Stamp Duty Land Tax relief guidance to reflect the nil-band threshold change that took effect on 23 September 2022, covering first-time buyers and multiple dwellings.
Scottish Ministers make council tax reduction and discount amendment regulations
Scottish Ministers have laid amending regulations for council tax reduction and council tax discounts in Scotland, changing how non-dependants, disability premiums and cost of living payments are treated.
Basic rate income tax cut announced then cancelled
Kwasi Kwarteng announced in September 2022 that the basic rate of income tax would fall from 20% to 19%, but the cut was cancelled the following month before it took effect.
Chancellor brings forward £45 billion package of tax cuts in first fiscal statement
The Chancellor has brought forward a £45 billion package of tax cuts, described as the biggest for 50 years, with gains concentrated among higher earners and in London and the South East.
Growth Plan announced £45 billion a year of tax cuts
The Growth Plan's £45 billion a year of tax cuts, £2 billion of which have since been cancelled, have worsened the fiscal outlook and put April 2023 benefit uprating in doubt.