HMRC has lowered the interest charged on late self assessment tax payments, reducing the rate from 8% to 7.75%. The change reflects the link between late payment interest and the Bank of England base rate. Taxpayers who miss the 31 January deadline still face fixed penalties, followed by daily charges and further percentage-based penalties if...
Why HMRC Compliance 2026 Matters for Every Business As the UK continues to strengthen financial transparency and digital reporting, HMRC compliance 2026 is set to be one of the most important updates for small businesses, landlords, contractors, and limited companies. HMRC has already increased its focus on digital audit trails, accurate record-keeping, and real-time data....
Understanding HMRC’s data-driven tax approach In recent years, HMRC’s large-scale data analysis has become one of the UK’s most powerful tools for increasing tax revenue and improving compliance. By harnessing advanced analytics and artificial intelligence, HMRC can now identify tax irregularities, detect avoidance schemes, and recover billions of pounds in unpaid taxes. This digital transformation...
The UK tax authority, HM Revenue & Customs (HMRC), plans to introduce a financial reward system for informants who provide information about tax evasion. This initiative aims to enhance tax compliance and encourage whistleblowers to come forward by offering them a percentage of the recovered tax revenue. A New Approach to Tackling Tax Evasion Tax...
The UK government is considering making e-invoicing mandatory for businesses. This move aims to enhance efficiency, reduce fraud, and simplify tax compliance. The consultation seeks input from businesses on how best to implement this system. What is E-Invoicing? E-invoicing refers to the digital exchange of invoices between businesses and tax authorities. Unlike traditional paper or...
Starting 5 April 2025, significant changes will affect sole traders and company directors regarding their Self-assessment tax returns. The UK government has enacted legislation mandating additional disclosures to enhance transparency and accuracy in tax reporting. Key Changes for Sole Traders For sole traders, the new requirements focus on the commencement and cessation of trading activities:...
HMRC has extended the self assessment deadline by a month until 28 February. It is a great relief for the customers struggling due to Coronavirus pandemic. Self Assessment customers will not receive a penalty for filing their online tax return late, HMRC announced on 25 January. Already more than 8.9 million taxpayers have filed their...
Contact HM Revenue and Customs (HMRC) as soon as possible if you have missed your tax bill payment. How you contact HMRC depends on what you need to pay. You have to pay interest if you pay late. You may avoid penalties by contacting HMRC as soon as possible. If you cannot pay because of...
HMRC has rejected requests from professional bodies (ACCA, CIOT, AAT, ICAEW and ICAS) to relax the Self Assessment filing deadline. HMRC will issue penalty notices as usual to all who file late but will allow more time to appeal. Many members contacted ICAEW in relation to the 31 January self assessment filing deadline. ICAEW wrote...
HMRC has started off its compliance activity on Coronavirus Job Retention Scheme (CJRS) grants. They are writing letters to 3,000 employers who may need to repay some or all of their claim. HMRC has been already evaluating Coronavirus Job Retention Scheme (CJRS) applications critically. Therefore, they are now starting the next phase of its compliance...
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Copyright by CareAccountancy. All rights reserved.
