Newsletter 4th February 2024
Welcome
Welcome to the first edition of the “Tax Matters to you” Newsletter, and yes tax does matter to you especially personal tax as this has an impact on all of us.
The idea behind the weekly possibly bi-weekly newsletter is to keep you up to date with what is happening in personal tax and how it might affect you, along the way there will be some tax tips, links to videos and articles on the website.
Grab a coffee and take a few minutes out, and please let me know your thoughts and comments It is always good to hear from you.
Hold the Line
Heads up, a recent report revealed that HMRC's customer service team has shrunk by over 1,000 advisors. This news got tax agents feeling like they're stuck on hold forever especially over the last month, with one of our calls being on hold for one hour and fifteen minutes, before being cut off. It's even worse if you are calling on the tax helpline personally, have you tried lately?
HMRC says they're going digital! They're encouraging everyone to use their online services, saying it's quicker and easier than waiting on the phone. Plus, they've switched to a "flexible" model where advisors can answer questions via webchat, email, and even snail mail. This, they say, helps them handle rush periods more efficiently and focus on tricky questions. Many of you may remember that HMRC closed the telephone lines last year for a few months, in the hope that taxpayers and agents would use the new online tools.
HMRC revealed that customer service staff numbers fell from 20,139 in December 2022 to 18,996 in December 2023. With the loss of 1,143 customer service staff professional bodies urge the Chancellor to invest in HMRC to sort out the “unacceptably low level” of customer service.
And I haven’t even mentioned response times to letters, what are your experiences of contacting HMRC?
Did you hear?
As you may have heard the chancellor has announced the date of the next Budget which is to be on Wednesday 6th March, over the coming weeks I will be making some predictions as to what this may hold for us all. The Chancellor recently uttered the words Tax Cuts, let's all hold our breath on that.
Interestingly the Association of Taxation Technicians (ATT) have made two representations to the Government, the first relates to the High-Income Benefit charge which has seen no increase with inflation since its introduction in 2013 when the threshold was set at £50,000. The ATT would like to see this brought into line with the higher rate threshold.
Secondly, mileage allowance as the rates are considered by many as “out of date”, with the last rate increase for motor cars and vans being in April 2011. Mileage allowances for motorcycles or bicycles have been unchanged since 2001, surely it must be time for the Government to take a fresh approach.
I am sure all of you (or possibly me) submitted your tax return before the 31st January deadline, which is lucky because the legendary £100.00 penalty is just the start of extra costs if you file later in the year as this infographic below highlights.
In addition to the late filing penalties, there are also penalties for the late payment of tax and I will be looking at those next week.
It is that time of the year when HMRC will start sending out revised tax codes for the tax year 2024/2025 which starts on the 6th of April 2024. Although the standard tax code will remain at 1257L many will receive a different code, some even starting with a "K".
Always remember to check your tax code when it arrives from HMRC, and if you have any questions make sure you contact them immediately.
Every week, I create a new Spotify playlist with a selection of my favourite tunes, that I will be listening to whilst in the office this week. Every week is different, that said this week is an eclectic mix of styles with indie, hip hop and jazz.
let me know what you think should be on next week's list, and if you have any suggestions as to what I should be listening to please let me know.
I hope you have enjoyed and found the first edition of my newsletter both enjoyable and informative, if you have any suggestions or comments then please let me know it is always good to hear from you.
In addition to the newsletter, I have also started adding blogs to the website, so please take a look.
If I or the team can be of any assistance to you, your family or your friends then please do not hesitate to contact me