Welcome to the December 2023 Newsletter from BBK Partnership

The Public Accounts Committee (PAC) has warned HMRC that it needs to put taxpayers at the heart of changes to the UK tax system. The warning comes following the PAC’s publication of a report which found that HMRC is ‘increasing Making Tax Digital (MTD) burdens’ on some taxpayers.

Meanwhile, figures published recently by HMRC revealed that nearly 100,000 taxpayers have paid £121 million in self assessment bills using its app since April this year.

Report finds HMRC has ‘lost sight of putting taxpayers first’ in relation to MTD

A report published by the PAC has warned that HMRC has ‘lost sight of needing to put taxpayers at the heart of changes to the tax system’, including the implementation of Making Tax Digital (MTD).

The PAC stated that HMRC is increasing the burdens imposed on some taxpayers through the MTD initiative. It said that in seeking further investment in MTD, HMRC has not been transparent enough about the ‘substantial costs’ MTD will impose on taxpayers.

According to the Committee, the design of MTD fails to take into sufficient account the realities facing business taxpayers and agents.

It said that while MTD will ‘substantially benefit’ HMRC by improving its systems, taxpayers are asked to spend more and do more in order to be compliant.

The report revealed that HMRC excluded more than £2 billion in upfront transitional MTD costs for taxpayers from its 2022 and 2023 business cases for the scheme. It also found that ‘widespread and repeated’ failures in HMRC’s planning, design and delivery of MTD have led to increased costs and delays to the initiative.

Meg Hillier, Chair of the PAC, commented: ‘When reporting on proposals for digitalising the tax system, our Committee should not have to be recommending that HMRC start with what taxpayers need – in an ideal world, one would hope this would simply go without saying. But seven years and £640 million into the MTD programme, we are concerned HMRC is also succeeding in making tax difficult.’

Nearly 100,000 taxpayers use HMRC’s app to pay self assessment tax bills

Figures published by HMRC have revealed that almost 100,000 taxpayers have paid £121 million using its app since April 2023.

HMRC stated that its app is the ‘quickest and easiest way’ for individuals to pay their self assessment tax bill.

Between April and September 2023, 97,365 individuals used HMRC’s app to pay their tax bill for the 2022/23 tax year, according to the data. HMRC added that the app is the simplest way for self assessment taxpayers to access their Unique Taxpayer Reference (UTR), national insurance number and PAYE information.

Commenting on the figures, Myrtle Lloyd, Director General for Customer Services at HMRC, said: ‘We all have busy lives, so it makes sense that more and more customers are choosing to access their personal tax information and pay their tax bill through the HMRC app.

‘It gives them the flexibility and convenience they need – as well as peace of mind that their self assessment is sorted. Go to GOV.UK and search ‘HMRC app’ to find out more.’

ESSENTIAL TAX DATES FOR DECEMBER

1 December         
New Advisory Fuel Rates (AFR) for company car users apply from today.

19 December
PAYE, Student loan and CIS deductions are due for the month to 5 December 2023.

30 December
Online filing deadline for submitting 2022/23 self assessment return if you require HMRC to collect any underpaid tax by making an adjustment to your 2024/25 tax code.

31 December
End of CT61 quarterly period.
Filing date for Company Tax Return Form CT600 for period ended 31 December 2022.

QUOTE OF THE MONTH

‘With our forward-looking measures of domestic activity, employment and investment intentions also disappointingly downbeat, company insolvencies could well start rising in subsequent quarters.’

Suren Thiru, Economics Director at the British Chambers of Commerce (BCC), commenting on data that suggested that the number of companies going bankrupt this year is on track to be the highest since the financial crisis in 2009.

ON OUR WEBSITE

A wealth of resources for businesses
With topics ranging from the Bribery Act 2010 to the National Minimum Wage and the National Living Wage, the Your Business section of our site is a hub of essential information.

Useful information for individuals
For a comprehensive bank of guides covering Venture Capital Trusts, the dividend nil-rate and much more, please visit the Your Money area of our website.

IN THE NEWS

Autumn Statement cuts ‘won’t stop tax revenues rising to highest ever levels’
The Institute for Fiscal Studies (IFS) has warned the government that the tax cuts announced in the 2023 Autumn Statement won’t prevent tax revenues rising to their highest ever levels.

Chancellor unveils Back to Work plan
Chancellor Jeremy Hunt recently unveiled the government’s new Back to Work plan, which provides ’employment focused support’ designed to help people move into work.

Government agrees ‘historic’ commitment to crack down on crypto tax evasion
The government has announced that it has agreed an ‘historic’ commitment with 48 countries to combat criminals using crypto-assets to evade tax.

UK requires ‘more certain tax system’, says CIMA
The Chartered Institute of Management Accountants (CIMA) has called for a ‘more certain tax system’ to help increase productivity and drive investment in the UK.

Business group calls for AI training for new skills to be made tax deductible
The Federation of Small Businesses (FSB) has called for artificial intelligence (AI) training for new skills to be made tax deductible for small firms.